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Edwards Lifesciences Corp

EW

Orthopedic, Prosthetic & Surgical Appliances & Supplies

Mkt Cap

$51.49B

PE

36.06

Debt

$596.8M

Cash

$1.414B

EV

$50.67B

FCF

$808.4M

Market Cap

$51.49B

P/E Ratio

36.06

Debt

$596.8M

Cash

$1.414B

EV

$50.67B

FCF

$808.4M
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}],"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}],"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}],"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}],"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}],"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}],"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}]}

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.

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Growth

%

%

Discount

%

%

Multiple

g\r+10%+11%+12%+13%+14%
0%109887
+1%1110988
+2%13111098
+3%141311109
+4%1714121110
Years012345678910TV
FCF$808.4M$901.3M$998.3M$1.099B$1.201B$1.304B$1.407B$1.508B$1.605B$1.697B$1.782B$17.82B
DCF$783.7M$754.9M$722.4M$686.7M$648.6M$608.4M$567M$524.8M$482.4M$440.5M$4.405B
Value$10.62B

In the chart Earnings are multiplied by this value.

Earnings Growth 15%
Earnings Stability 80%


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.

Years12-201412-201512-201612-201712-201812-201912-202012-202112-2022TTM
Net Margin35%20%19%17%19%24%19%29%28%25%
ROA33%16%17%19%15%18%13%20%21%17%
ROE37%20%22%20%23%25%18%26%26%21%

What is the average Net Margin?

The average Net Margin over the past 5 years is +22.71%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +2.26%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +17.75%.

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

The trend of ROA over the past 5 years is +0.6%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +22.99%.

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

The trend of ROE over the past 5 years is +0.95%.


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.

Years12-201412-201512-201612-201712-201812-201912-202012-202112-2022TTM
Debt FCF-1.341.561.970.870.640.920.420.610.74
Debt Equity0.270.240.320.550.190.140.130.100.100.09
MIN
Graham Stability---93%100%100%100%100%100%93%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 0.74.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.22.

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.

Years12-201512-201712-201912-2021Trend
Revenue12%9.4%7.4%2.9%-0.78%
Net Income17%21%13%1.3%6.8%
Stockholders Equity13%14%12%-0.5%0.35%
FCF12%3.2%1.7%-31%5.2%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +9.4%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -0.78%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +21.13%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +6.77%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +14.46%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +0.35%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +3.18%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +5.19%.