NYSE:EW

Stock Analysis Report

Executive Summary

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

Rewards

Earnings are forecast to grow 15.5% per year

Earnings grew by 45% over the past year

Risk Analysis

No risks detected for EW from our risk checks.


Snowflake Analysis

Flawless balance sheet with outstanding track record.


Similar Companies

Share Price & News

How has Edwards Lifesciences's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EW has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

26.0%

EW

18.0%

US Medical Equipment

12.5%

US Market


1 Year Return

4.3%

EW

-8.0%

US Medical Equipment

-12.7%

US Market

Return vs Industry: EW exceeded the US Medical Equipment industry which returned -8% over the past year.

Return vs Market: EW exceeded the US Market which returned -12.7% over the past year.


Shareholder returns

EWIndustryMarket
7 Day26.0%18.0%12.5%
30 Day-3.3%-10.6%-14.7%
90 Day-15.1%-18.2%-21.5%
1 Year4.3%4.3%-7.2%-8.0%-10.9%-12.7%
3 Year109.8%109.8%41.2%37.4%12.6%5.4%
5 Year183.4%183.4%72.5%54.7%31.9%17.5%

Price Volatility Vs. Market

How volatile is Edwards Lifesciences's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

39.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EW ($198.15) is trading above our estimate of fair value ($181.73)

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


Price To Earnings Ratio

PE vs Industry: EW is poor value based on its PE Ratio (39.4x) compared to the Medical Equipment industry average (36.7x).

PE vs Market: EW is poor value based on its PE Ratio (39.4x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: EW is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: EW is overvalued based on its PB Ratio (10x) compared to the US Medical Equipment industry average (2.9x).


Next Steps

Future Growth

How is Edwards Lifesciences forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

15.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EW's forecast earnings growth (15.5% per year) is above the savings rate (1.7%).

Earnings vs Market: EW's earnings (15.5% per year) are forecast to grow faster than the US market (12.3% per year).

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

Revenue vs Market: EW's revenue (9.2% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: EW's revenue (9.2% 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 (25.1%)


Next Steps

Past Performance

How has Edwards Lifesciences performed over the past 5 years?

6.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EW has high quality earnings.

Growing Profit Margin: EW's current net profit margins (24.1%) are higher than last year (19.4%).


Past Earnings Growth Analysis

Earnings Trend: EW's earnings have grown by 6.9% per year over the past 5 years.

Accelerating Growth: EW's earnings growth over the past year (45%) exceeds its 5-year average (6.9% per year).

Earnings vs Industry: EW earnings growth over the past year (45%) exceeded the Medical Equipment industry 1%.


Return on Equity

High ROE: EW's Return on Equity (25.2%) is considered high.


Next Steps

Financial Health

How is Edwards Lifesciences's financial position?


Financial Position Analysis

Short Term Liabilities: EW's short term assets ($3.0B) exceed its short term liabilities ($902.4M).

Long Term Liabilities: EW's short term assets ($3.0B) exceed its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: EW's debt to equity ratio (14.3%) is considered satisfactory.

Reducing Debt: EW's debt to equity ratio has reduced from 26.6% to 14.3% over the past 5 years.

Debt Coverage: EW's debt is well covered by operating cash flow (198.4%).

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


Balance Sheet

Inventory Level: EW has a high level of physical assets or inventory.

Debt Coverage by Assets: EW's debt is covered by short term assets (assets are 5x debt).


Next Steps

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 payouts.

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

6.2yrs

Average management tenure


CEO

Mike Mussallem (66yo)

20.17s

Tenure

US$10,278,949

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 ($USD10.28M) is about average for companies of similar size in the US market ($USD11.74M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Mussallem
Chairman & CEO20.17yrsUS$10.28m0.48% $197.2m
Scott Ullem
Corporate VP & CFO6.17yrsUS$3.02m0.035% $14.2m
Donald Bobo
Corporate Vice President of Strategy & Corporate Development4yrsUS$2.90m0.032% $13.1m
Larry Wood
Corporate Vice President of Transcatheter Aortic Valve Replacement13.17yrsUS$2.92m0.052% $21.5m
Catherine Szyman
Corporate Vice President of Critical Care5.17yrsUS$2.79m0.0036% $1.5m
Todd Brinton
Corporate VP of Advanced Technology & Chief Scientific Officer1yrno datano data
Mark Wilterding
Vice President of Investor Relationsno datano datano data
Arnold Pinkston
Corporate VP & General Counsel0.50yrno datano data
Dirksen Lehman
Corporate Vice President of Public Affairs6.75yrsno datano data
Christine McCauley
Corporate Vice President of Human Resources7.58yrsno datano data

6.2yrs

Average Tenure

54yo

Average Age

Experienced Management: EW's management team is seasoned and experienced (6.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Mussallem
Chairman & CEO20.17yrsUS$10.28m0.48% $197.2m
William Link
Independent Director10.83yrsUS$308.12k0.0093% $3.8m
Kieran Gallahue
Independent Director5yrsUS$295.12k0.0078% $3.2m
Wesley von Schack
Lead Independent Directorno dataUS$320.12k0.018% $7.6m
Steven Loranger
Independent Director4yrsUS$281.29k0.0056% $2.3m
Leslie Heisz
Independent Director3.67yrsUS$306.29k0.0019% $792.9k
Nicholas Valeriani
Independent Director5.33yrsUS$290.00k0.0061% $2.5m
Martha Marsh
Lead Independent Director4.42yrsUS$290.00k0.0027% $1.1m

5.0yrs

Average Tenure

66.5yo

Average Age

Experienced Board: EW's board of directors are considered experienced (5 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 company bio, 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$41.082b
  • Shares outstanding: 207.33m
  • Website: https://www.edwards.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EWNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 2000
EWLDB (Deutsche Boerse AG)YesCommon StockDEEURMar 2000
EWSWX (SIX Swiss Exchange)YesCommon StockCHCHFMar 2000
EW *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMar 2000
EWLETLX (Eurotlx)YesCommon StockITEURMar 2000
EWLSWBAG (Wiener Boerse AG)YesCommon StockATEURMar 2000
E1WL34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020

Biography

Edwards Lifesciences Corporation provides products and technologies for structural heart disease, and critical care and surgical monitoring in the United States 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 valve diseases, as well as various procedure-enabling platforms to advance minimally invasive surgery. In addition, it offers critical care products, such as hemodynamic monitoring systems to measure a patient’s heart function and fluid status in surgical and intensive care settings; pulmonary artery catheters; arterial pressure monitoring products oximetry central venous catheters, as well as monitoring platforms that display a patient's physiological information; and Acumen Hypotension Prediction Index, which alerts clinicians in advance of a patient developing low blood pressure. The company distributes its products through direct sales force and independent distributors. Edwards Lifesciences Corporation was founded in 1958 and is headquartered in Irvine, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 00:27
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.