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EW

Edwards LifesciencesNYSE:EW Stock Report

Market Cap

US$73.1b

7D

5.6%

1Y

50.2%

Updated

25 Oct, 2021

Data

Company Financials +
EW fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance6/6
Financial Health6/6
Dividends0/6

EW Overview

Edwards Lifesciences Corporation provides products and technologies for structural heart disease, and critical care and surgical monitoring in the United States, Europe, Japan, and internationally.

Rewards

Earnings are forecast to grow 8.81% per year

Earnings grew by 96.7% over the past year

Risk Analysis

No risks detected for EW from our risk checks.

Edwards Lifesciences Competitors

Abbott Laboratories

NYSE:ABT

US$224.4b

Intuitive Surgical

NasdaqGS:ISRG

US$122.7b

Stryker

NYSE:SYK

US$103.0b

Boston Scientific

NYSE:BSX

US$63.3b

Price History & Performance

Summary of all time highs, changes and price drops for Edwards Lifesciences
Historical stock prices
Current Share PriceUS$117.30
52 Week HighUS$70.92
52 Week LowUS$123.27
Beta1.08
1 Month Change-2.31%
3 Month Change6.73%
1 Year Change50.23%
3 Year Change152.77%
5 Year Change269.57%
Change since IPO8,430.91%

Recent News & Updates

Sep 30
Many Would Be Envious Of Edwards Lifesciences' (NYSE:EW) Excellent Returns On Capital

Many Would Be Envious Of Edwards Lifesciences' (NYSE:EW) Excellent Returns On Capital

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Firstly, we'd...

Sep 06
Is Edwards Lifesciences (NYSE:EW) Using Too Much Debt?

Is Edwards Lifesciences (NYSE:EW) Using Too Much Debt?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Aug 12
At US$111, Is Edwards Lifesciences Corporation (NYSE:EW) Worth Looking At Closely?

At US$111, Is Edwards Lifesciences Corporation (NYSE:EW) Worth Looking At Closely?

Edwards Lifesciences Corporation ( NYSE:EW ) led the NYSE gainers with a relatively large price hike in the past couple...

Jul 31
Does Edwards Lifesciences (NYSE:EW) Deserve A Spot On Your Watchlist?

Does Edwards Lifesciences (NYSE:EW) Deserve A Spot On Your Watchlist?

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Shareholder Returns

EWUS Medical EquipmentUS Market
7D5.6%3.6%1.9%
1Y50.2%23.8%33.4%

Return vs Industry: EW exceeded the US Medical Equipment industry which returned 23.1% over the past year.

Return vs Market: EW exceeded the US Market which returned 30.3% over the past year.

Price Volatility

Is EW's price volatile compared to industry and market?
EW volatility
EW Beta1.08
Industry Beta0.88
Market Beta1

Stable Share Price: EW is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: EW's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
195814,900Mike Mussallemhttps://www.edwards.com

Edwards Lifesciences Corporation provides products and technologies for structural heart disease, and critical care and surgical monitoring in the United States, Europe, Japan, and internationally. It offers transcatheter heart valve replacement products for the minimally invasive replacement of heart valves; and transcatheter heart valve repair and replacement products to treat mitral and tricuspid valve diseases. The company also provides surgical heart valve therapy products, such as pericardial valves for aortic and mitral surgical valve replacement; aortic heart valves; annuloplasty rings; cardiac cannula devices; beating heart mitral valve repair system for the treatment of degenerative mitral regurgitation, as well as various procedure-enabling platforms to advance minimally invasive surgery.

Edwards Lifesciences Fundamentals Summary

How do Edwards Lifesciences's earnings and revenue compare to its market cap?
EW fundamental statistics
Market CapUS$73.12b
Earnings (TTM)US$1.46b
Revenue (TTM)US$4.93b

50.0x

P/E Ratio

14.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EW income statement (TTM)
RevenueUS$4.93b
Cost of RevenueUS$1.21b
Gross ProfitUS$3.72b
ExpensesUS$2.26b
EarningsUS$1.46b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 27, 2021

Earnings per share (EPS)2.35
Gross Margin75.53%
Net Profit Margin29.69%
Debt/Equity Ratio11.6%

How did EW perform over the long term?

See historical performance and comparison

Valuation

Is Edwards Lifesciences undervalued compared to its fair value and its price relative to the market?

50x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EW ($117.3) is trading above our estimate of fair value ($69.45)

Significantly Below Fair Value: EW is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EW's PE Ratio (50x) is in line with the US Medical Equipment industry average.

PE vs Market: EW is poor value based on its PE Ratio (50x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: EW is poor value based on its PEG Ratio (5.7x)


Price to Book Ratio

PB vs Industry: EW is overvalued based on its PB Ratio (14.2x) compared to the US Medical Equipment industry average (4.3x).


Future Growth

How is Edwards Lifesciences forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EW's forecast earnings growth (8.8% per year) is above the savings rate (2%).

Earnings vs Market: EW's earnings (8.8% per year) are forecast to grow slower than the US market (14.7% per year).

High Growth Earnings: EW's earnings are forecast to grow, but not significantly.

Revenue vs Market: EW's revenue (9.7% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: EW's revenue (9.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EW's Return on Equity is forecast to be high in 3 years time (26%)


Past Performance

How has Edwards Lifesciences performed over the past 5 years?

13.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EW has high quality earnings.

Growing Profit Margin: EW's current net profit margins (29.7%) are higher than last year (17.2%).


Past Earnings Growth Analysis

Earnings Trend: EW's earnings have grown by 13.3% per year over the past 5 years.

Accelerating Growth: EW's earnings growth over the past year (96.7%) exceeds its 5-year average (13.3% per year).

Earnings vs Industry: EW earnings growth over the past year (96.7%) exceeded the Medical Equipment industry 36.1%.


Return on Equity

High ROE: EW's Return on Equity (28.5%) is considered high.


Financial Health

How is Edwards Lifesciences's financial position?


Financial Position Analysis

Short Term Liabilities: EW's short term assets ($3.3B) exceed its short term liabilities ($886.2M).

Long Term Liabilities: EW's short term assets ($3.3B) exceed its long term liabilities ($1.6B).


Debt to Equity History and Analysis

Debt Level: EW's debt to equity ratio (11.6%) is considered satisfactory.

Reducing Debt: EW's debt to equity ratio has reduced from 24.4% to 11.6% over the past 5 years.

Debt Coverage: EW's debt is well covered by operating cash flow (242.3%).

Interest Coverage: EW earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Edwards Lifesciences's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate EW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate EW's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EW's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EW's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.8yrs

Average management tenure


CEO

Mike Mussallem (68 yo)

21.75yrs

Tenure

US$10,050,933

Compensation

Mr. Michael A. Mussallem, also known as Mike, has been Chairman and Chief Executive Officer of Edwards Lifesciences Corp. since 2000. Mr. Mussallem has been the President of CAS Medical Systems, Inc. since...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD10.05M) is about average for companies of similar size in the US market ($USD11.15M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: EW's management team is seasoned and experienced (7.8 years average tenure).


Board Members

Experienced Board: EW's board of directors are considered experienced (5.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Edwards Lifesciences Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Edwards Lifesciences Corporation
  • Ticker: EW
  • Exchange: NYSE
  • Founded: 1958
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$73.116b
  • Shares outstanding: 623.33m
  • Website: https://www.edwards.com

Number of Employees


Location

  • Edwards Lifesciences Corporation
  • One Edwards Way
  • Irvine
  • California
  • 92614
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 23:13
End of Day Share Price2021/10/25 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.