Edwards Lifesciences (EW) AI Stock Analysis

• Market Cap: $49.71B
• Dividend Yield: N/A
• Average Volume (3M): 3.48M
• Price to Earnings (P/E): 36.5
• Beta (1Y): 0.67
• Revenue Growth: 0.19%
• EPS Growth: 65.58%
• Country: US
• Employees: 15,800
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.67
• Shares Outstanding: 580,300,000
• 10 Day Avg. Volume: 3,799,022
• 30 Day Avg. Volume: 3,477,477
• PEG Ratio: 0.05
• Price to Book (P/B): 4.43
• Price to Sales (P/S): 8.13
• P/FCF Ratio: 152.63
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 7.21
• Enterprise Value/Gross Profit: 9.21
• Enterprise Value/Ebitda: 24.34
• 1Y Price Target: $95.86
• Price Target Upside: 11.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 24
• EPS Forecast (FY): 2.6
• Revenue Forecast (FY): $6.04B

• Rating: 79 Outperform
• Price Target: $95.00 ▲(10.90% Upside)

Edwards Lifesciences' strong financial performance and positive earnings call are the most significant factors driving the stock score. The company's robust sales growth and increased guidance highlight its competitive position in the medical devices industry. However, the high P/E ratio and potential leadership changes pose risks that investors should monitor.

Positive Factors

Revenue Growth

The strong sales growth across multiple segments indicates robust demand and effective market penetration, supporting long-term revenue expansion.

Product Innovation

The significant increase in TMTT sales highlights successful product innovation and adoption, strengthening Edwards' competitive position in the market.

Strong Balance Sheet

A strong balance sheet with substantial cash reserves provides financial flexibility for strategic investments and resilience against economic fluctuations.

Negative Factors

Gross Profit Margin Decline

A decline in gross profit margin suggests potential cost pressures or pricing challenges, which could impact profitability if not addressed.

CFO Transition

The upcoming CFO transition may lead to uncertainty in financial strategy and execution, affecting investor confidence and operational stability.

Declining ROE

A declining return on equity indicates potential challenges in maintaining profitability and efficient use of shareholder capital, impacting long-term growth.

Edwards Lifesciences Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Edwards Lifesciences generates revenue primarily through the sale of its medical devices, which are categorized into various segments including heart valve therapies and critical care technologies. The heart valve segment, particularly TAVR, is a significant source of income, driven by increasing adoption rates and expanding indications for use in treating aortic stenosis. Additionally, the company earns revenue from hemodynamic monitoring products, which are used in hospitals to assess and manage critically ill patients. Key partnerships with hospitals and healthcare systems, along with ongoing clinical studies that support the efficacy of its products, further enhance its revenue generation. Moreover, the company's commitment to innovation and development of new technologies positions it favorably in the competitive landscape, contributing to sustained growth in its earnings.

Edwards Lifesciences Financial Statement Overview

Summary

Edwards Lifesciences demonstrates strong financial health with consistent profitability and a stable balance sheet. The company is effectively managing its cash flows, although there is room for improvement in cash conversion efficiency. Continued focus on revenue growth and maintaining cost efficiencies will be crucial for sustaining its financial performance.

Income Statement

Edwards Lifesciences shows strong profitability with a consistent gross profit margin above 75% and a healthy net profit margin of 23.19% in TTM. Revenue growth is moderate at 3.5% TTM, indicating steady expansion. EBIT and EBITDA margins are robust, reflecting efficient operations. However, the decline in net profit margin from 2024 suggests potential cost pressures or increased competition.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.069, indicating prudent financial leverage. Return on equity is strong at 13.57% TTM, though it has decreased from previous years, suggesting a need for improved profitability. The equity ratio is healthy, reflecting a stable financial position.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow growth at 32.29% TTM, indicating enhanced cash generation capabilities. The operating cash flow to net income ratio is moderate at 0.64, suggesting room for improvement in cash conversion. The free cash flow to net income ratio is strong at 0.79, highlighting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.88B	5.44B	5.01B	5.38B	5.23B	4.39B
Gross Profit	4.60B	4.32B	3.97B	4.22B	4.01B	3.29B
EBITDA	1.74B	1.72B	1.53B	1.96B	1.89B	1.07B
Net Income	1.36B	4.17B	1.40B	1.52B	1.50B	823.40M
Balance Sheet
Total Assets	13.27B	13.06B	9.36B	8.29B	8.50B	7.24B
Cash, Cash Equivalents and Short-Term Investments	3.84B	3.98B	1.63B	1.22B	1.47B	1.40B
Total Debt	700.30M	700.00M	685.10M	691.30M	690.30M	694.90M
Total Liabilities	3.07B	2.99B	2.64B	2.49B	2.67B	2.66B
Stockholders Equity	10.21B	10.00B	6.65B	5.81B	5.84B	4.57B
Cash Flow
Free Cash Flow	804.20M	289.90M	629.50M	953.40M	1.40B	647.00M
Operating Cash Flow	1.02B	542.30M	895.80M	1.22B	1.73B	1.05B
Investing Cash Flow	-1.09B	2.31B	173.80M	252.30M	-1.72B	-531.10M
Financing Cash Flow	-916.80M	-983.00M	-711.00M	-1.58B	-356.30M	-486.90M

Edwards Lifesciences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 85.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 85.66 is above the 20-day moving average (MA) of 84.94, above the 50-day MA of 82.27, and above the 200-day MA of 77.33, indicating a bullish trend. The MACD of 0.45 indicates Positive momentum. The RSI at 56.43 is Neutral, neither overbought nor oversold. The STOCH value of 68.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EW.

Edwards Lifesciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EW	79 Outperform	$49.71B	36.47	13.59%	―	0.19%	65.58%
BSX	79 Outperform	$141.74B	51.14	12.66%	―	21.62%	54.80%
DXCM	79 Outperform	$25.76B	36.77	30.63%	―	14.21%	5.66%
ABT	73 Outperform	$218.14B	15.74	30.62%	1.88%	6.37%	142.39%
SYK	70 Outperform	$135.84B	46.64	14.04%	0.95%	10.95%	-18.32%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SSKN	43 Neutral	$7.01M	-0.45	-207.19%	―	-5.19%	-0.81%

Edwards Lifesciences Corporate Events

Edwards Lifesciences Announces CFO Transition Plan

On October 30, 2025, Edwards Lifesciences announced that its Chief Financial Officer, Scott Ullem, will transition from his role by mid-year 2026. The company has started a selection process for a new CFO, ensuring continuity and a smooth transfer of responsibilities, with Ullem continuing in an advisory role post-transition.