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Edwards Lifesciences (EW)
NYSE:EW
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Edwards Lifesciences
(NYSE:EW)67Neutral
Positive Factors
Financial Performance
EW delivered 4Q results that outpaced Street expectations.
Product Performance
EW is pleased with S3 Ultra Resilia's commercial performance in both the US and Europe.
Negative Factors
Growth Concerns
Ongoing capacity constraints are likely to weigh on TAVR growth and potentially limit the degree to which upside from near-term growth drivers could be seen.
Edwards Lifesciences (EW) vs. S&P 500 (SPY)
Market Cap
$41.96B
Dividend YieldN/A
Average Volume (3M)4.55M
Price to Earnings (P/E)10.2
Beta (1Y)1.33
Revenue Growth-4.67%
EPS Growth202.32%
CountryUS
Employees19,800
SectorHealthcare
Sector Strength74
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)6.98
Shares Outstanding587,900,000
10 Day Avg. Volume4,107,156
30 Day Avg. Volume4,545,378
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)N/A
Price to Sales (P/S)7.72
Price to Cash Flow (P/CF)-82.30
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$77.80Price Target Upside6.79% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering20
Edwards Lifesciences Business Overview & Revenue Model
Company DescriptionIncorporated in 1958, California-based Edwards Lifesciences Corp. is a medical technology company, which specializes in structural heart disease and critical care and surgical monitoring. It reports in three segments: Transcatheter Aortic Valve Replacements, Transcatheter Mitral and Tricuspid Therapies and Surgical Structural Heart and Critical Care.
How the Company Makes MoneyEdwards Lifesciences generates revenue primarily through the sale of its medical devices and technologies. The company's key revenue streams include its transcatheter heart valve therapy products, which account for a substantial portion of its income as they cater to the growing demand for less invasive heart surgery alternatives. Additionally, Edwards earns revenue from its surgical heart valve therapy products, which include mechanical and tissue heart valves used in open-heart surgeries. Another significant revenue source is its critical care business, which offers advanced hemodynamic monitoring systems used in intensive care settings. The company also benefits from strategic partnerships with hospitals, healthcare providers, and research institutions, enhancing its market reach and product development capabilities. Factors such as an aging population and increasing prevalence of heart disease contribute to the demand for Edwards Lifesciences' products, further supporting its revenue growth.
Edwards Lifesciences Financial Statement Overview
Summary
Edwards Lifesciences shows financial resilience with a strong balance sheet and stable cash flows. Despite challenges in operational margins, the company's net income and equity position are robust. Continued attention to revenue growth and operational efficiency will be key for future stability.Income Statement
The company's revenue has fluctuated, with a decline in 2024 from the previous year. Gross profit margin remained strong, but the negative EBIT and EBITDA margins in 2024 indicate operational challenges. Net income surged in 2024 due to other factors possibly not related to core operations, suggesting potential non-recurring items.60
Neutral
Balance Sheet
The balance sheet is solid with a low debt-to-equity ratio and a strong equity position, indicating financial stability. The equity ratio is high, suggesting lower reliance on debt. However, the slight increase in liabilities should be monitored.75
Positive
Cash Flow
Operating cash flow declined in 2024, but the company maintained positive free cash flow. The free cash flow to net income ratio was favorable, indicating efficient cash generation relative to profits. However, fluctuations in investing and financing activities suggest strategic shifts.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.44B | 6.00B | 5.38B | 5.23B | 4.39B | Gross Profit |
| 4.32B | 4.63B | 4.30B | 3.98B | 3.31B | EBIT |
| 1.38B | 1.53B | 1.75B | 1.35B | 1.63B | EBITDA |
| 1.72B | 1.77B | 1.96B | 1.89B | 1.07B | Net Income Common Stockholders |
| 4.17B | 1.40B | 1.52B | 1.50B | 823.40M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 3.98B | 1.64B | 1.22B | 1.47B | 1.40B | Total Assets |
| 13.06B | 9.36B | 8.29B | 8.50B | 7.24B | Total Debt |
| 700.00M | 694.90M | 691.30M | 690.30M | 694.90M | Net Debt |
| -2.35B | -449.10M | -77.70M | -172.50M | -488.30M | Total Liabilities |
| 2.99B | 2.64B | 2.49B | 2.67B | 2.66B | Stockholders Equity |
| 10.00B | 6.65B | 5.81B | 5.84B | 4.57B |
| Cash Flow | Free Cash Flow | |||
| 289.90M | 629.50M | 953.40M | 1.40B | 647.00M | Operating Cash Flow |
| 542.30M | 895.80M | 1.22B | 1.73B | 1.05B | Investing Cash Flow |
| 2.31B | 173.80M | 252.30M | -1.72B | -531.10M | Financing Cash Flow |
| -983.00M | -711.00M | -1.58B | -356.30M | -486.90M |
Edwards Lifesciences Technical Analysis
Positive
72.85
Price Trends
72.54
Positive
71.13
Positive
74.09
Negative
Market Momentum
-0.07
Positive
52.10
Neutral
36.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EW, the sentiment is Positive. The current price of 72.85 is above the 20-day moving average (MA) of 72.83, above the 50-day MA of 72.54, and below the 200-day MA of 74.09, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 52.10 is Neutral, neither overbought nor oversold. The STOCH value of 36.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EW.
Edwards Lifesciences Risk Analysis
Edwards Lifesciences disclosed 23 risk factors in its most recent earnings report. Edwards Lifesciences reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Edwards Lifesciences Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $148.79B | 50.24 | 15.26% | 0.83% | 10.23% | -5.74% | |
79 Outperform | $238.61B | 18.01 | 30.95% | 1.63% | 4.59% | 134.50% | |
78 Outperform | $152.91B | 83.94 | 9.03% | ― | 17.60% | 16.84% | |
78 Outperform | $199.00B | 88.57 | 15.62% | ― | 17.24% | 27.76% | |
77 Outperform | $119.32B | 28.28 | 8.42% | 3.00% | 2.72% | 4.48% | |
67 Neutral | $41.96B | 10.23 | 41.75% | ― | -4.67% | 202.32% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% |
* Healthcare Sector Average
Performance Comparison
EW
Edwards Lifesciences
72.85
-15.48
-17.53%
ABT
Abbott Laboratories
137.71
20.75
17.74%
BSX
Boston Scientific
104.71
37.29
55.31%
ISRG
Intuitive Surgical
568.02
179.86
46.34%
MDT
Medtronic
94.06
11.34
13.71%
SYK
Stryker
395.69
43.93
12.49%
Edwards Lifesciences Earnings Call Summary
Earnings Call Date: Feb 11, 2025 | % Change Since: 2.74% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive sentiment with strong sales growth, especially in TMTT, strategic acquisitions, and a positive outlook for future growth. Despite some challenges in TAVR growth and regional pressures, the company maintained a strong balance sheet and is optimistic about 2025.Highlights
Strong Full Year Financial Performance
Sales grew 9% to $5.4 billion for 2024, in line with original guidance.
TMTT Outperformance
TMTT sales increased 77% year-over-year to $352 million, exceeding expectations.
Strategic Acquisitions
Completed acquisitions of JC Medical, JenaValve, and Endotronix, expanding opportunities in new therapeutic areas.
Strong Q4 Sales Performance
Total company sales grew 9% in Q4, with higher-than-expected earnings per share.
TAVR Growth and Expansion
TAVR global sales increased 6% year-over-year to $4.1 billion, with strong performance in the U.S. and Europe.
Positive Outlook for 2025
Guidance for 8% to 10% total company sales growth in 2025, with TMTT expected to deliver over $500 million in sales.
Healthy Balance Sheet
Maintained a strong balance sheet with approximately $3 billion in cash and cash equivalents.
Lowlights
TAVR Growth Below Expectations
While TAVR grew by 6%, growth was lower than originally expected due to capacity challenges.
Regional Sales Pressure
Experienced regional pressure in Japan, leading to slower growth compared to other regions.
Impact of Foreign Exchange
Foreign exchange rates expected to have a $130 million downside to sales in 2025.
Company Guidance
In the call, Edwards Lifesciences provided guidance indicating strong growth and strategic advancements for 2025. The company reported a 9% increase in total sales for both Q4 and the full year 2024, with sales reaching $5.4 billion. For 2025, Edwards projects total company sales to grow between 8% and 10%, targeting $5.6 billion to $6 billion, driven by transcatheter aortic valve replacement (TAVR) and transcatheter mitral and tricuspid therapies (TMTT), with the latter expected to achieve over $500 million in sales. The company also aims for a 27% to 28% adjusted operating margin for the year, leveraging strategic acquisitions and investments in innovative technologies. Edwards anticipates the early TAVR trial results to be a catalyst post-FDA approval in mid-2025, enhancing long-term growth prospects.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.