Edwards Lifesciences Corp (EW) stock analysis

P/E above its 5-year median

Edwards Lifesciences's P/E of 59.8 is above its own 5-year median of 36.0.

P/E above the industry

Edwards Lifesciences's P/E of 59.8 is above the Surgical, Medical, and Dental Instruments and Supplies median of 27.7.

EV/EBITDA above its 5-year median

Edwards Lifesciences's EV/EBITDA of 35.4 is above its 5-year median of 29.9.

P/B above the industry

Edwards Lifesciences's price-to-book of 5.62 is above the Surgical, Medical, and Dental Instruments and Supplies median of 3.20.

Trading above fair value

The share price of $105.81 is above our fair value estimate of $67.26.

Margin of safety under 20%

The price is 57.3% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 10.8% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew -9.1% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 13.4% over the last twelve months; the Surgical, Medical, and Dental Instruments and Supplies median is 11.0%.

Guidance lowered

Edwards Lifesciences lowered its full-year 2026 TAVR sales outlook on Jul 23, 2026.

Gross margin slipping

Gross margin was 78.0% over the last twelve months, against 78.2% a year earlier.

Return on equity under 15%

Return on equity was 9.7% over the last twelve months and averaged 27.6% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 14.4%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Edwards Lifesciences's return on equity of 9.7% is above the Surgical, Medical, and Dental Instruments and Supplies median of -32.4%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 15.3% over the last twelve months, against a 5-year average of 37.0%.

Net margin above the industry

Edwards Lifesciences's net margin of 15.3% is above the Surgical, Medical, and Dental Instruments and Supplies median of -14.1%.

Low debt

Debt is 5.5% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 13.0% five years ago to 5.5%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 287% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 4.60 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 14.29; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Edwards Lifesciences has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.