NYSE:EW

Stock Analysis Report

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Market Cap

US$67.7b

Last Updated

2021/07/27 02:11 UTC

Data Sources

Company Financials +

Executive Summary

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. More Details


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


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 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.


Market Performance


7 Day Return

5.8%

EW

3.2%

US Medical Equipment

3.3%

US Market


1 Year Return

38.4%

EW

28.9%

US Medical Equipment

37.8%

US Market

Return vs Industry: EW exceeded the US Medical Equipment industry which returned 31% over the past year.

Return vs Market: EW matched the US Market which returned 39.1% over the past year.


Shareholder returns

EWIndustryMarket
7 Day5.8%3.2%3.3%
30 Day5.1%2.6%1.1%
90 Day13.3%2.5%2.9%
1 Year38.4%38.4%29.8%28.9%39.9%37.8%
3 Year129.8%129.8%73.5%69.4%65.8%55.4%
5 Year186.0%186.0%147.2%135.7%124.3%99.4%

Long-Term 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?

79.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EW ($108.89) is trading above our estimate of fair value ($61.41)

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 (79.6x) compared to the US Medical Equipment industry average (62.1x).

PE vs Market: EW is poor value based on its PE Ratio (79.6x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: EW is poor value based on its PEG Ratio (5.8x)


Price to Book Ratio

PB vs Industry: EW is overvalued based on its PB Ratio (14.5x) compared to the US Medical Equipment industry average (4.5x).


Future Growth

How is Edwards Lifesciences forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

13.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EW's forecast earnings growth (13.7% per year) is above the savings rate (2%).

Earnings vs Market: EW's earnings (13.7% per year) are forecast to grow slower than the US market (15% per year).

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

Revenue vs Market: EW's revenue (9.9% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: EW's revenue (9.9% 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 (21.7%)


Past Performance

How has Edwards Lifesciences performed over the past 5 years?

10.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EW has a large one-off loss of $411.9M impacting its March 31 2021 financial results.

Growing Profit Margin: EW's current net profit margins (19%) are lower than last year (24.7%).


Past Earnings Growth Analysis

Earnings Trend: EW's earnings have grown by 10.5% per year over the past 5 years.

Accelerating Growth: EW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EW had negative earnings growth (-23.2%) over the past year, making it difficult to compare to the Medical Equipment industry average (15.5%).


Return on Equity

High ROE: EW's Return on Equity (18.3%) is considered low.


Financial Health

How is Edwards Lifesciences's financial position?


Financial Position Analysis

Short Term Liabilities: EW's short term assets ($3.1B) exceed its short term liabilities ($799.0M).

Long Term Liabilities: EW's short term assets ($3.1B) exceed its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: EW's debt to equity ratio (12.8%) is considered satisfactory.

Reducing Debt: EW's debt to equity ratio has reduced from 25.4% to 12.8% over the past 5 years.

Debt Coverage: EW's debt is well covered by operating cash flow (192.8%).

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?

7.5yrs

Average management tenure


CEO

Mike Mussallem (68 yo)

21.5yrs

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 ($USD10.05M) is about average for companies of similar size in the US market ($USD11.26M).

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 (7.5 years average tenure).


Board Members

Experienced Board: EW's board of directors are considered experienced (5.2 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$67.690b
  • Shares outstanding: 621.64m
  • Website: https://www.edwards.com

Number of Employees


Location

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

Listings


Biography

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 offe...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/27 02:11
End of Day Share Price2021/07/26 00:00
Earnings2021/03/31
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.