Edwards Lifesciences (EW) AI Stock Analysis

• Market Cap: $45.88B
• Dividend Yield: N/A
• Average Volume (3M): 4.09M
• Price to Earnings (P/E): 52.3
• Beta (1Y): 0.93
• Revenue Growth: -9.84%
• EPS Growth: -35.77%
• Country: US
• Employees: 15,800
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Devices
• EPS (TTM): 0.64
• Shares Outstanding: 586,600,000
• 10 Day Avg. Volume: 4,270,358
• 30 Day Avg. Volume: 4,088,663
• PEG Ratio: 24.11
• Price to Book (P/B): 4.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 149.39
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 1.73
• Enterprise Value/Gross Profit: 9.13
• Enterprise Value/Ebitda: 5.76
• 1Y Price Target: $82.91
• Price Target Upside: 6.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 64 Neutral
• Price Target: $81.00 ▲(3.57%Upside)

Edwards Lifesciences showcases financial resilience and strategic growth, particularly in its TMTT segment. However, overvaluation and operational challenges in certain markets present risks. The stock's technical indicators suggest a need for cautious optimism.

Positive Factors

Financial Performance

A pathway to achieving 30%+ operating margins is outlined, showing a positive outlook for the company's P&L.

Growth Outlook

FDA approval of the SAPIEN 3 platform in asymptomatic patients is expected to unlock a large commercial opportunity for Edwards Lifesciences.

Revenue Growth

Management raised its FY25 TMTT revenue guidance by ~5% at the midpoint and maintained its FY25 overall company and TAVR revenue guidance ranges.

Negative Factors

Currency Impact

While the weaker dollar is expected to be a headwind to margins, Edwards’ guidance includes plans to offset tariff impacts and the JenaValve acquisition.

Market Competition

Continued weakness in Japan due to lower procedure growth and competitive pressure is a challenge for Edwards Lifesciences.

Operational Challenges

Hospital capacity constraints driven by emerging structural heart therapies have negatively impacted US TAVR volumes in recent quarters.

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 through the sale of its medical device products, primarily focusing on transcatheter heart valve therapy, surgical heart valve replacement and repair, and critical care monitoring technologies. The company's transcatheter heart valve segment is the largest revenue contributor, driven by the increasing adoption of minimally invasive procedures. Edwards Lifesciences also benefits from its surgical heart valve segment, where it provides a range of tissue and mechanical valves for patients undergoing open-heart surgery. Additionally, the critical care segment offers advanced hemodynamic monitoring solutions used in intensive care units and surgical settings. Revenue is further supported by strong partnerships with healthcare providers and institutions worldwide, as well as ongoing investments in research and development to innovate and expand its product portfolio.

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.

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.

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.

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
EBITDA	1.72B	1.77B	1.96B	1.86B	1.07B
Net Income	4.17B	1.40B	1.52B	1.50B	823.40M
Balance Sheet
Total Assets	13.06B	9.36B	8.29B	8.50B	7.24B
Cash, Cash Equivalents and Short-Term Investments	3.98B	1.64B	1.22B	1.47B	1.40B
Total Debt	700.00M	694.90M	691.30M	690.30M	694.90M
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

• Technical Analysis Sentiment: Positive
• Last Price: 78.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 78.21 is above the 20-day moving average (MA) of 76.26, above the 50-day MA of 75.50, and above the 200-day MA of 71.64, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 62.62 is Neutral, neither overbought nor oversold. The STOCH value of 93.15 is Negative, 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
SYK	81 Outperform	$150.40B	53.11	14.26%	0.85%	10.76%	-15.22%
ABT	80 Outperform	$233.80B	17.43	30.66%	1.76%	5.00%	139.98%
DXCM	78 Outperform	$33.85B	64.81	23.72%	―	9.11%	-17.87%
MDT	77 Outperform	$110.21B	23.80	9.49%	3.30%	3.62%	31.18%
BSX	72 Outperform	$157.61B	78.06	9.65%	―	19.35%	14.31%
EW	64 Neutral	$45.88B	52.25	16.73%	―	-9.84%	-35.77%
Sector *	46 Neutral	C$190.36M	-4.25	-8.56%	3.09%	13.53%	-1.76%

Edwards Lifesciences Corporate Events

Edwards Lifesciences Expands Employee Stock Purchase Plans

At the 2025 Annual Meeting of Stockholders held on May 8, Edwards Lifesciences Corporation’s stockholders approved amendments to the company’s Employee Stock Purchase Plans (ESPP) for both U.S. and international employees. The amendments increase the number of shares available for issuance, with 4.2 million additional shares for the U.S. ESPP and 1.46 million for the International ESPP. This decision reflects the company’s commitment to enhancing employee investment opportunities and could potentially strengthen employee engagement and retention. Additionally, all director nominees were elected, executive compensation was approved, and PricewaterhouseCoopers LLP was ratified as the company’s independent auditor for the fiscal year ending December 31, 2025.