NYSE:EW

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with solid 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


Market Performance


7 Day Return

-2.9%

EW

-1.6%

US Medical Equipment

0.07%

US Market


1 Year Return

49.8%

EW

13.8%

US Medical Equipment

8.9%

US Market

Return vs Industry: EW exceeded the US Medical Equipment industry which returned 13.8% over the past year.

Return vs Market: EW exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

EWIndustryMarket
7 Day-2.9%-1.6%0.07%
30 Day1.1%-4.3%-0.3%
90 Day3.4%-4.3%-1.6%
1 Year49.8%49.8%14.7%13.8%11.3%8.9%
3 Year95.4%95.4%70.7%65.6%46.3%36.8%
5 Year275.5%275.5%117.3%93.5%62.1%44.3%

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?

63.82x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EW ($222.09) is trading above our estimate of fair value ($144.87)

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 (63.8x) compared to the Medical Equipment industry average (41.8x).

PE vs Market: EW is poor value based on its PE Ratio (63.8x) compared to the US market (17.8x).


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 (13.2x) compared to the US Medical Equipment industry average (3.7x).


Next Steps

Future Growth

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

17.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EW's forecast earnings growth (17.3% per year) is above the savings rate (2.7%).

Earnings vs Market: EW's earnings (17.3% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: EW's revenue (9.6% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: EW's revenue (9.6% 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%)


Next Steps

Past Performance

How has Edwards Lifesciences performed over the past 5 years?

0.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EW's earnings have grown by 0.8% per year over the past 5 years.

Accelerating Growth: EW's earnings growth over the past year (10.4%) exceeds its 5-year average (0.8% per year).

Earnings vs Industry: EW earnings growth over the past year (10.4%) underperformed the Medical Equipment industry 28.2%.


Return on Equity

High ROE: EW's Return on Equity (20.7%) is considered high.


Return on Assets

ROA vs Industry: EW has a higher Return on Assets than the Medical Equipment industry average last year.


Return on Capital Employed

ROCE Improving: EW has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Edwards Lifesciences's financial position?


Financial Position Analysis

Short Term Liabilities: EW's short term assets ($2.4B) exceeds its short term liabilities ($697.0M)

Long Term Liabilities: EW's short term assets (2.4B) exceeds its long term liabilities (1.4B)


Debt to Equity History and Analysis

Debt Level: EW's debt to equity ratio (17%) is considered satisfactory

Reducing Debt: EW's debt to equity ratio has reduced from 31.2% to 17% over the past 5 years.

Debt Coverage: EW's debt is well covered by operating cash flow (164.6%).

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 3.963470x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of Edwards Lifesciences's salary, the management and board of directors tenure and is there insider trading?

6.0yrs

Average management tenure


CEO

Mike Mussallem (66yo)

19.8yrs

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 ($USD10.28M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

6.0yrs

Average Tenure

55.5yo

Average Age

Experienced Management: EW's management team is seasoned and experienced (6 years average tenure).


Board Age and Tenure

4.7yrs

Average Tenure

66.5yo

Average Age

Experienced Board: EW's board of directors are considered experienced (4.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$2,266,10921 Aug 19
William Link
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,214
Max PriceUS$222.98
SellUS$651,79802 Aug 19
Wesley von Schack
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares3,000
Max PriceUS$217.27
SellUS$508,79030 May 19
Donald Bobo
EntityIndividual
Role
Head of Corporate Development
Corporate Vice President of Strategy & Corporate Development
Shares3,000
Max PriceUS$169.60
SellUS$212,30230 Nov 18
Wesley von Schack
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares1,319
Max PriceUS$160.96
SellUS$2,035,56821 Nov 18
William Link
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares13,578
Max PriceUS$150.06

Ownership Breakdown


Management Team

  • Mike Mussallem (66yo)

    Chairman & CEO

    • Tenure: 19.8yrs
    • Compensation: US$10.28m
  • Don Bobo (57yo)

    Corporate Vice President of Strategy & Corporate Development

    • Tenure: 3.7yrs
    • Compensation: US$2.90m
  • Scott Ullem (52yo)

    Corporate VP & CFO

    • Tenure: 5.8yrs
    • Compensation: US$3.02m
  • Arnie Pinkston (60yo)

    Corporate VP & General Counsel

    • Tenure: 0.08yrs
  • Larry Wood (53yo)

    Corporate Vice President of Transcatheter Aortic Valve Replacement

    • Tenure: 12.8yrs
    • Compensation: US$2.92m
  • Christine McCauley (54yo)

    Corporate Vice President of Human Resources

    • Tenure: 7.2yrs
  • Dirksen Lehman

    Corporate Vice President of Public Affairs

    • Tenure: 6.3yrs
  • Robert W. Sellers

    Principal Accounting Officer

    • Tenure: 0yrs
  • Todd Brinton

    Corporate VP of Advanced Technology & Chief Scientific Officer

    • Tenure: 0.7yrs
  • Mark Wilterding

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Bill Link (73yo)

    Independent Director

    • Tenure: 10.4yrs
    • Compensation: US$308.12k
  • Kieran Gallahue (56yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$295.12k
  • Wes von Schack (75yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$320.12k
  • Mike Mussallem (66yo)

    Chairman & CEO

    • Tenure: 19.8yrs
    • Compensation: US$10.28m
  • Steve Loranger (67yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$281.29k
  • Leslie Heisz (59yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$306.29k
  • Nick Valeriani (62yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$290.00k
  • Martha Marsh (70yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$290.00k

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: 1999
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$46.188b
  • Shares outstanding: 207.97m
  • 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

Biography

Edwards Lifesciences Corporation provides products and technologies for structural heart disease and critical care monitoring in the United States and internationally. It offers transcatheter heart valve t ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:34
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.