Edwards Lifesciences Corp

EW

Orthopedic, Prosthetic & Surgical Appliances & Supplies

Mkt Cap

$52.36B

PE

37.14

Debt

$597.2M

Cash

$1.229B

EV

$51.73B

FCF

$271.4M

Market Cap

$52.36B

P/E Ratio

37.14

Debt

$597.2M

Cash

$1.229B

EV

$51.73B

FCF

$271.4M

Charts data: {"Earnings":[{"time":"2014-12-30","value":811100000},{"time":"2015-12-30","value":494900000},{"time":"2016-12-30","value":569500000},{"time":"2017-12-30","value":583600000},{"time":"2018-12-30","value":722200000},{"time":"2019-12-30","value":1046900000},{"time":"2020-12-30","value":823400000},{"time":"2021-12-30","value":1503100000},{"time":"2022-12-30","value":1521900000},{"time":"2023-12-30","value":1399400000}],"Sales":[{"time":"2014-12-30","value":2322900000},{"time":"2015-12-30","value":2493700000},{"time":"2016-12-30","value":2963700000},{"time":"2017-12-30","value":3435300000},{"time":"2018-12-30","value":3722800000},{"time":"2019-12-30","value":4348000000},{"time":"2020-12-30","value":4386300000},{"time":"2021-12-30","value":5232500000},{"time":"2022-12-30","value":5382400000},{"time":"2023-12-30","value":6004800000}],"Net Margins":[{"time":"2014-12-30","value":0.3491755994661845},{"time":"2015-12-30","value":0.19846011950114287},{"time":"2016-12-30","value":0.1921584505854169},{"time":"2017-12-30","value":0.16988327074782406},{"time":"2018-12-30","value":0.19399376813151392},{"time":"2019-12-30","value":0.2407773689052438},{"time":"2020-12-30","value":0.18772085812643913},{"time":"2021-12-30","value":0.28726230291447685},{"time":"2022-12-30","value":0.28275490487514865},{"time":"2023-12-30","value":0.23304689581667998}],"Assets":[{"time":"2014-12-30","value":3524300000},{"time":"2015-12-30","value":4059300000},{"time":"2016-12-30","value":4510000000},{"time":"2017-12-30","value":5695800000},{"time":"2018-12-30","value":5323700000},{"time":"2019-12-30","value":6488100000},{"time":"2020-12-30","value":7237100000},{"time":"2021-12-30","value":8502600000},{"time":"2022-12-30","value":8292500000},{"time":"2023-12-30","value":9363200000}],"Stockholders Equity":[{"time":"2014-12-30","value":2191400000},{"time":"2015-12-30","value":2503100000},{"time":"2016-12-30","value":2619000000},{"time":"2017-12-30","value":2956200000},{"time":"2018-12-30","value":3140400000},{"time":"2019-12-30","value":4148300000},{"time":"2020-12-30","value":4574300000},{"time":"2021-12-30","value":5835900000},{"time":"2022-12-30","value":5806700000},{"time":"2023-12-30","value":6719400000}],"ROE":[{"time":"2014-12-30","value":0.37012868485899425},{"time":"2015-12-30","value":0.19771483360632816},{"time":"2016-12-30","value":0.21744940817105765},{"time":"2017-12-30","value":0.19741560110953252},{"time":"2018-12-30","value":0.2299707043688702},{"time":"2019-12-30","value":0.2523684400838898},{"time":"2020-12-30","value":0.1800056839297816},{"time":"2021-12-30","value":0.25756095889237307},{"time":"2022-12-30","value":0.262093788210171},{"time":"2023-12-30","value":0.20826264249784207}],"ROA":[{"time":"2014-12-30","value":0.3294838691371336},{"time":"2015-12-30","value":0.15756411203902151},{"time":"2016-12-30","value":0.16787139689578714},{"time":"2017-12-30","value":0.19126373819305453},{"time":"2018-12-30","value":0.14863722598944343},{"time":"2019-12-30","value":0.18298115010557792},{"time":"2020-12-30","value":0.12884995371074048},{"time":"2021-12-30","value":0.20017406440382943},{"time":"2022-12-30","value":0.21313234850768767},{"time":"2023-12-30","value":0.17067882775119617}]}

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. In addition, it offers surgical structural heart solutions, such as aortic surgical valve under the INSPIRIS name; KONECT RESILIA, a pre-assembled aortic tissue valved conduit for patients who require replacement of the valve, root, and ascending aorta; and HARPOON Beating Heart Mitral Valve Repair System for patients with degenerative mitral regurgitation. Further, the company provides critical care solutions, including advanced hemodynamic monitoring systems to measure a patient's heart function and fluid status in surgical and intensive care settings; and Acumen Hypotension Prediction Index software that alerts clinicians in advance of a patient developing dangerously low blood pressure. The company distributes its products through a direct sales force and independent distributors. Edwards Lifesciences Corporation was founded in 1958 and is headquartered in Irvine, California.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
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9/30/22
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6/30/22
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3/31/22
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12/31/21
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9/30/21
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3/31/20
10-K
12/31/19
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9/30/19
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6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Edwards Lifesciences Corp

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$271.4M	$294.7M	$318.8M	$343.6M	$369M	$394.8M	$420.9M	$446.9M	$472.8M	$498.4M	$523.3M	$5.233B
DCF		$256.3M	$241.1M	$226M	$211M	$196.3M	$182M	$168M	$154.6M	$141.7M	$129.3M	$1.293B
Value	$3.2B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 16%

Earnings Stability 88%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	20%	19%	17%	19%	24%	19%	29%	28%	23%	23%
ROA	16%	17%	19%	15%	18%	13%	20%	21%	17%	17%
ROE	20%	22%	20%	23%	25%	18%	26%	26%	21%	20%

What is the average Net Margin?

The average Net Margin over the past 5 years is +23.76%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +1.2%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +17.41%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.78%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +23.17%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -0.01%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	1.34	1.56	1.97	0.87	0.64	0.92	0.42	0.61	0.93	2.20
Debt Equity	0.24	0.32	0.55	0.19	0.14	0.13	0.10	0.10	0.09	0.08
MIN
Graham Stability	-	-	93%	100%	100%	100%	100%	100%	100%	93%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 2.20.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.01.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.93.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	11%	10%	11%	12%	-0.53%
Net Income	14%	14%	19%	-8%	3.3%
Stockholders Equity	14%	16%	14%	16%	0.4%
FCF	2.8%	-1.4%	-0.23%	-34%	0.56%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +10.03%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -0.53%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +14.14%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +3.29%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +16.43%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +0.4%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -1.35%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +0.56%.