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

0.07%

EW

1.1%

US Medical Equipment

-0.6%

US Market


1 Year Return

42.9%

EW

9.9%

US Medical Equipment

0.6%

US Market

EW outperformed the Medical Equipment industry which returned 9.5% over the past year.

EW outperformed the Market in United States of America which returned 1.1% over the past year.


Share holder returns

EWIndustryMarket
7 Day0.07%1.1%-0.6%
30 Day-1.0%0.6%2.2%
90 Day13.7%2.9%1.1%
1 Year42.9%42.9%10.8%9.9%2.9%0.6%
3 Year83.4%83.4%70.1%64.9%44.6%35.2%
5 Year327.6%327.6%138.9%111.8%61.9%44.2%

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

2 weeks ago | Simply Wall St

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

Valuation

Is Edwards Lifesciences undervalued based on future cash flows and its price relative to the stock market?

63.12x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Edwards Lifesciences's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Edwards Lifesciences's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Edwards Lifesciences is overvalued based on earnings compared to the US Medical Equipment industry average.

Edwards Lifesciences is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Edwards Lifesciences is poor value based on expected growth next year.


Price Based on Value of Assets

Edwards Lifesciences is overvalued based on assets compared to the US Medical Equipment industry average.


Next Steps

Future Growth

How is Edwards Lifesciences expected to perform in the next 1 to 3 years based on estimates from 23 analysts?

17.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Edwards Lifesciences's revenue is expected to grow by 9.8% yearly, however this is not considered high growth (20% yearly).

Edwards Lifesciences's earnings are expected to grow by 17.1% yearly, however this is not considered high growth (20% yearly).

Edwards Lifesciences's revenue growth is expected to exceed the United States of America market average.

Edwards Lifesciences's earnings growth is expected to exceed the United States of America market average.

Edwards Lifesciences's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Edwards Lifesciences is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

Edwards Lifesciences's year on year earnings growth rate has been positive over the past 5 years.

Edwards Lifesciences's 1-year earnings growth exceeds its 5-year average (10.4% vs 0.8%)

Edwards Lifesciences's earnings growth has not exceeded the US Medical Equipment industry average in the past year (10.4% vs 28.2%).


Return on Equity

Edwards Lifesciences has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Edwards Lifesciences used its assets more efficiently than the US Medical Equipment industry average last year based on Return on Assets.


Return on Capital Employed

Edwards Lifesciences has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Edwards Lifesciences's financial position?


Financial Position Analysis

Edwards Lifesciences is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Edwards Lifesciences's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Edwards Lifesciences's level of debt (17%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (31.2% vs 17% today).

Debt is well covered by operating cash flow (164.6%, greater than 20% of total debt).

Edwards Lifesciences earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 4x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Edwards Lifesciences's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Edwards Lifesciences's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Edwards Lifesciences has not reported any payouts.

Unable to verify if Edwards Lifesciences's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Edwards Lifesciences has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Edwards Lifesciences's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Mike Mussallem (66yo)

19.7yrs

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

Mike's remuneration is about average for companies of similar size in United States of America.

Mike's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.3yrs

Average Tenure

55.5yo

Average Age

The average tenure for the Edwards Lifesciences management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.6yrs

Average Tenure

66.5yo

Average Age

The tenure for the Edwards Lifesciences board of directors is about average.


Insider Trading

Edwards Lifesciences individual 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: 19.7yrs
    • Compensation: US$10.28m
  • Don Bobo (57yo)

    Corporate Vice President of Strategy & Corporate Development

    • Tenure: 3.6yrs
    • Compensation: US$2.90m
  • Scott Ullem (52yo)

    Corporate VP & CFO

    • Tenure: 5.7yrs
    • Compensation: US$3.02m
  • Arnie Pinkston (60yo)

    Corporate VP & General Counsel

    • Tenure: 0yrs
  • Larry Wood (53yo)

    Corporate Vice President of Transcatheter Aortic Valve Replacement

    • Tenure: 12.7yrs
    • Compensation: US$2.92m
  • Christine McCauley (54yo)

    Corporate Vice President of Human Resources

    • Tenure: 7.1yrs
  • 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: 0.6yrs
  • Mark Wilterding

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Bill Link (73yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$308.12k
  • Kieran Gallahue (56yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$295.12k
  • Wes von Schack (75yo)

    Lead Independent Director

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

    Chairman & CEO

    • Tenure: 19.7yrs
    • Compensation: US$10.28m
  • Steve Loranger (67yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$281.29k
  • Leslie Heisz (59yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$306.29k
  • Nick Valeriani (62yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$290.00k
  • Martha Marsh (70yo)

    Independent Director

    • Tenure: 3.9yrs
    • 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$45.683b
  • 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 Analysis2019/09/20 23:34
End of Day Share Price2019/09/20 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.