Edwards Lifesciences (NYSE:EW) - Share price, News & Analysis

EW fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	3/6
Past Performance	6/6
Financial Health	6/6
Dividends	0/6

EW Stock 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 10.51% per year

Earnings grew by 80.8% over the past year

Risk Analysis

Significant insider selling over the past 3 months

Edwards Lifesciences Competitors

Abbott Laboratories

NYSE:ABT

US$201.4b

Medtronic

NYSE:MDT

US$139.9b

Stryker

NYSE:SYK

US$88.1b

Intuitive Surgical

NasdaqGS:ISRG

US$79.5b

Price History & Performance

Summary of all time highs, changes and price drops for Edwards Lifesciences
Historical stock prices
Current Share Price	US$96.13
52 Week High	US$131.73
52 Week Low	US$91.52
Beta	1.16
1 Month Change	-18.80%
3 Month Change	-9.26%
1 Year Change	0.71%
3 Year Change	70.26%
5 Year Change	152.42%
Change since IPO	6,891.27%

Recent News & Updates

May 22

Capital Investment Trends At Edwards Lifesciences (NYSE:EW) Look Strong

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

May 10

Is Now The Time To Put Edwards Lifesciences (NYSE:EW) On Your Watchlist?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Apr 29

Edwards Lifesciences Corporation (NYSE:EW) Shares Could Be 33% Above Their Intrinsic Value Estimate

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Edwards Lifesciences...

Shareholder Returns

	EW	US Medical Equipment	US Market
7D	0.2%	1.8%	-0.5%
1Y	0.7%	-15.7%	-12.3%

Return vs Industry: EW exceeded the US Medical Equipment industry which returned -16.2% over the past year.

Return vs Market: EW exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is EW's price volatile compared to industry and market?
EW volatility
EW Average Weekly Movement	6.0%
Medical Equipment Industry Average Movement	10.5%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

Stable Share Price: EW is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: EW's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1958	15,700	Mike Mussallem	https://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 the PASCAL and Cardioband transcatheter valve repair systems for minimally-invasive therapy.

Edwards Lifesciences Fundamentals Summary

How do Edwards Lifesciences's earnings and revenue compare to its market cap?
EW fundamental statistics
Market Cap	US$59.77b
Earnings (TTM)	US$1.54b
Revenue (TTM)	US$5.36b

38.8x

P/E Ratio

11.2x

P/S Ratio

Is EW overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
EW income statement (TTM)
Revenue	US$5.36b
Cost of Revenue	US$1.25b
Gross Profit	US$4.10b
Other Expenses	US$2.56b
Earnings	US$1.54b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.47
Gross Margin	76.58%
Net Profit Margin	28.72%
Debt/Equity Ratio	10.2%

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?

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

38.85x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: EW ($96.13) is trading above our estimate of fair value ($84.07)

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 (38.8x) compared to the US Medical Equipment industry average (35.2x).

PE vs Market: EW is poor value based on its PE Ratio (38.8x) compared to the US market (15.1x).

Price to Earnings Growth Ratio

PEG Ratio: EW is poor value based on its PEG Ratio (3.7x)

Price to Book Ratio

PB vs Industry: EW is overvalued based on its PB Ratio (10.2x) compared to the US Medical Equipment industry average (2.4x).

Future Growth

How is Edwards Lifesciences forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

10.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: EW's forecast earnings growth (10.5% per year) is above the savings rate (1.9%).

Earnings vs Market: EW's earnings (10.5% per year) are forecast to grow slower than the US market (12.5% per year).

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

Revenue vs Market: EW's revenue (10.1% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: EW's revenue (10.1% 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 (22.4%)

Past Performance

How has Edwards Lifesciences performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

18.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EW has high quality earnings.

Growing Profit Margin: EW's current net profit margins (28.7%) are higher than last year (19%).

Past Earnings Growth Analysis

Earnings Trend: EW's earnings have grown by 18.3% per year over the past 5 years.

Accelerating Growth: EW's earnings growth over the past year (80.8%) exceeds its 5-year average (18.3% per year).

Earnings vs Industry: EW earnings growth over the past year (80.8%) exceeded the Medical Equipment industry 16.1%.

Return on Equity

High ROE: EW's Return on Equity (26.3%) is considered high.

Financial Health

How is Edwards Lifesciences's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: EW's short term assets ($3.2B) exceed its short term liabilities ($949.9M).

Long Term Liabilities: EW's short term assets ($3.2B) exceed its long term liabilities ($1.6B).

Debt to Equity History and Analysis

Debt Level: EW has more cash than its total debt.

Reducing Debt: EW's debt to equity ratio has reduced from 31% to 10.2% over the past 5 years.

Debt Coverage: EW's debt is well covered by operating cash flow (289.5%).

Interest Coverage: EW's interest payments on its debt are well covered by EBIT (2348.7x coverage).

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

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.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as EW has not reported any payouts.

Discover strong dividend paying companies

Management

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

8.3yrs

Average management tenure

CEO

Mike Mussallem (68 yo)

22.33yrs

Tenure

US$13,613,305

Compensation

Mr. Michael A. Mussallem, also known as Mike, has been Chairman and Chief Executive Officer of Edwards Lifesciences Corporation since 2000. He also serves as an Advisor at Incube Management, LLC. Mr. Mussa...

CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD13.61M) is about average for companies of similar size in the US market ($USD13.34M).

Compensation vs Earnings: Mike's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: EW's management team is seasoned and experienced (8.3 years average tenure).

Board Members

Experienced Board: EW's board of directors are considered experienced (6.4 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: EW insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31