Edwards Lifesciences Corp

Health Care
Industrial Specialties
www.edwards.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $44.33B
PE 11
Debt $597.70M
Cash $3.06B
EV $41.87B
FCF $289.90M

Earnings

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Sales & Net Margins

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Earnings	$4.17B
EBIT	$1.55B
ROE	41%
ROA	12%
FCF	$289.90M
Equity	$10.06B
Growth Stability	100%
PE	10.63
PEG	0.42
PB	4.41
P/FCF	152.91
P/S	8.15
Price/Cash	0.07
Debt/Equity	0.06
Debt/FCF	2.06
Net Margins	77%
Gross Margins	79%
Op. Margins	28%
Earnings CAGR	19%
Sales Growth YoY	-10%
Sales Growth QoQ	5%
Sales CAGR	9%
FCF CAGR	1%
Equity CAGR	15%
Earnings Stability	0.78
Earnings Growth YoY	4%
Earnings Growth QoQ	-87%

Earnings CAGR 5Y	25%
Sales CAGR 5Y	7%
FCF CAGR 5Y	-17%
Equity CAGR 5Y	18%
Earnings CAGR 3Y	3%
Sales CAGR 3Y	3%
FCF CAGR 3Y	-41%
Equity CAGR 3Y	20%
Market Cap	$44.33B
Revenue	$5.44B
Assets	$13.06B
Total Debt	$597.70M
Cash	$3.06B
Shares Outstanding	588.6M
EV	41.87B
Earnings Score	93%
Moat Score	97%
Safety Score	95%
Final Score	95%
Working Capital	4.78B
Current Ratio	4.18
Gross Profit	$4.32B
Shares Growth 3y	-2%
Equity Growth QoQ	5%
Equity Growth YoY	50%

Assets & ROA

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Stockholders Equity & ROE

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Edwards Lifesciences is the global leader in patient-focused medical innovations for structural heart disease as well as critical care and surgical monitoring. We thrive on discovery and expanding the boundaries of medical technology serving patients in 100+ countries with the help of our employees in areas including Clinical Affairs Quality Engineering Research & Development Regulatory Affairs Sales & Marketing corporate functions and more. Our roots date back to 1958 when Miles Lowell Edwards a retired engineer with a background in hydraulics and fuel pump operations set out to build the first artificial heart. Edwards believed the heart could be mechanized and was encouraged by Dr. Albert Starr to focus on developing an artificial heart valve. After just two years the first Starr-Edwards mitral valve was developed and successfully placed in a patient. This innovation spawned Edwards Laboratories.

SEC Filings

Direct access to Edwards Lifesciences Corp (EW) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Edwards Lifesciences Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Edwards Lifesciences Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 19%

Stability 78%

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Edwards Lifesciences Corp Discounted Cash Flow

Fully customizable DCF calculator online for Edwards Lifesciences Corp.

Years

Calculation mode

= $3.1B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$290M	$293M	$295M	$298M	$301M	$304M	$307M	$310M	$312M	$315M	$318M	$3.2B
DCF		$266M	$244M	$224M	$206M	$189M	$173M	$159M	$146M	$134M	$123M	$1.2B
Value	$3.1B

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.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	20%	19%	17%	19%	24%	19%	29%	28%	23%	77%	77%
ROA	-	17%	19%	15%	18%	13%	20%	21%	17%	12%	12%
ROE	-	22%	20%	23%	25%	18%	26%	26%	21%	41%	41%

Good Net Margins (76.66%)

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

Safety and Stability

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.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	1.56	1.97	0.87	0.64	0.92	0.42	0.61	0.93	2.06	2.06
Debt over Equity	0.24	0.32	0.55	0.19	0.14	0.13	0.1	0.1	0.09	0.06	0.06
Growth Stability	-	-	-	100%	100%	100%	100%	100%	100%	100%	100%

Neutral Debt/FCF ratio (2.06)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.06)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

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.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	19%	16%	8%	17%	1%	19%	3%	12%	-9%	7%
Earnings YoY growth	-	15%	2%	24%	45%	-21%	83%	1%	-8%	198%	25%
Equity YoY growth	-	5%	13%	6%	32%	10%	28%	-1%	16%	50%	18%
FCF YoY growth	-	18%	58%	-17%	34%	-30%	117%	-31%	-34%	-55%	-17%