Edwards Lifesciences (EW) AI Stock Analysis

• Market Cap: $46.00B
• Dividend Yield: N/A
• Average Volume (3M): 4.42M
• Price to Earnings (P/E): 53.5
• Beta (1Y): 0.88
• Revenue Growth: -5.23%
• EPS Growth: -39.83%
• Country: US
• Employees: 15,800
• Sector: Healthcare
• Sector Strength: 38
• Industry: Medical - Devices
• EPS (TTM): 0.67
• Shares Outstanding: 587,100,000
• 10 Day Avg. Volume: 5,652,860
• 30 Day Avg. Volume: 4,424,939
• 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: 0.93
• Enterprise Value/Revenue: 7.71
• Enterprise Value/Gross Profit: 9.73
• Enterprise Value/Ebitda: 24.09
• 1Y Price Target: $89.09
• Price Target Upside: 13.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 26

• Rating: 76 Outperform
• Price Target: $89.00 ▲(13.59% Upside)

Edwards Lifesciences' overall stock score is driven by strong financial performance and positive earnings call sentiment, indicating robust growth prospects. The technical analysis supports a bullish trend, although the high valuation poses a risk if growth expectations are not met. The mixed corporate events have minimal impact on the overall score.

Positive Factors

Earnings

Management raised full-year EPS guidance to the high end of $2.45-$2.55, indicating a positive adjustment in financial expectations.

Financial Performance

Edwards Lifesciences management raised the 2025 adjusted EPS guidance to account for the removal of expected dilution from the JenaValve deal.

Sales Growth

EW reported WW TAVR sales grew +8.9% y/y to $1.13bn (+3% vs. consensus $1.10bn).

Negative Factors

Growth Prospects

The potential failure of the JenaValve deal is seen as a negative for future growth, as it would eliminate the addition of a self-expanding valve option for aortic regurgitation patients.

Market Competition

The near-term outlook is clouded by TAVR growth decelerating and price competition in Europe.

Regulatory Risks

The FTC's lawsuit to block the JenaValve deal introduces a risk that the deal may not close, removing a potential future growth opportunity for Edwards Lifesciences.

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 demonstrates strong financial health with consistent revenue growth and robust profitability. The balance sheet is solid with low leverage and high financial stability. However, challenges in operational efficiency and cash flow conversion slightly temper the overall financial performance.

Income Statement

Edwards Lifesciences demonstrates a strong income statement with consistent revenue growth, evidenced by a 1.8% increase in TTM revenue compared to the previous year. The gross profit margin remains robust at 79.2%, and the net profit margin notably increased due to a significant rise in net income for TTM. However, the declining EBIT and EBITDA margins since 2022 suggest potential efficiency issues in operations despite profitable growth.

Balance Sheet

The company's balance sheet is solid, highlighted by a low debt-to-equity ratio of 0.07, indicating minimal leverage and high financial stability. With an equity ratio of 77.8%, Edwards showcases strong shareholder equity relative to total assets. Return on equity is remarkable at 41.3%, reflecting efficient management in generating profits from shareholders' investments. The balance sheet's strength is tempered slightly by a decrease in total assets over the past year.

Cash Flow

Edwards Lifesciences presents a mixed cash flow picture. The free cash flow grew significantly by 125.3% in TTM, indicating effective cash management and investment strategy. However, the operating cash flow to net income ratio of 0.21 suggests a weaker conversion of income into cash. Free cash flow to net income ratio is at 0.16, indicating room for improvement in cash generation relative to income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.54B	5.44B	5.01B	5.38B	5.23B	4.39B
Gross Profit	4.39B	4.29B	3.97B	4.22B	4.01B	3.29B
EBITDA	1.77B	1.72B	1.53B	1.96B	1.89B	1.07B
Net Income	4.18B	4.17B	1.40B	1.52B	1.50B	823.40M
Balance Sheet
Total Assets	13.02B	13.06B	9.36B	8.29B	8.50B	7.24B
Cash, Cash Equivalents and Short-Term Investments	3.90B	3.98B	1.63B	1.22B	1.47B	1.40B
Total Debt	699.40M	700.00M	685.10M	691.30M	690.30M	694.90M
Total Liabilities	2.83B	2.99B	2.64B	2.49B	2.67B	2.66B
Stockholders Equity	10.13B	10.00B	6.65B	5.81B	5.84B	4.57B
Cash Flow
Free Cash Flow	653.10M	289.90M	629.50M	953.40M	1.40B	647.00M
Operating Cash Flow	876.20M	542.30M	895.80M	1.22B	1.73B	1.05B
Investing Cash Flow	2.34B	2.31B	173.80M	252.30M	-1.72B	-531.10M
Financing Cash Flow	-1.30B	-983.00M	-711.00M	-1.58B	-356.30M	-486.90M

Edwards Lifesciences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 78.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 78.35 is above the 20-day moving average (MA) of 78.12, above the 50-day MA of 77.23, and above the 200-day MA of 73.17, indicating a bullish trend. The MACD of 0.56 indicates Positive momentum. The RSI at 51.30 is Neutral, neither overbought nor oversold. The STOCH value of 19.79 is Positive, 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
ABT	79 Outperform	$233.71B	16.79	31.01%	1.73%	5.85%	152.28%
MDT	77 Outperform	$119.00B	25.70	9.49%	3.03%	3.62%	31.18%
EW	76 Outperform	$46.00B	53.49	15.71%	―	-5.23%	-39.83%
DXCM	75 Outperform	$30.93B	55.21	22.83%	―	9.30%	-14.95%
BSX	73 Outperform	$152.83B	61.39	11.71%	―	21.45%	36.19%
SYK	69 Neutral	$144.35B	49.96	14.25%	0.88%	11.36%	-15.66%
Sector *	51 Neutral	$7.35B	-0.20	-44.53%	2.35%	30.18%	-1.17%

Edwards Lifesciences Corporate Events

FTC Blocks Edwards Lifesciences’ Acquisition of JenaValve

On August 6, 2025, Edwards Lifesciences announced that the U.S. Federal Trade Commission has moved to block its proposed acquisition of JenaValve Technology. Edwards disagrees with this decision, believing it limits treatment options for aortic regurgitation patients and plans to continue pursuing regulatory approval. Despite the FTC’s action, Edwards has revised its full-year 2025 financial guidance, increasing its adjusted EPS forecast to the high-end of $2.45-$2.55, with minimal impact on Q3 guidance.

The most recent analyst rating on (EW) stock is a Buy with a $90.00 price target. To see the full list of analyst forecasts on Edwards Lifesciences stock, see the EW Stock Forecast page.

Edwards Lifesciences Announces Leadership Change in TAVR Division

On July 21, 2025, Edwards Lifesciences announced that Larry L. Wood will resign from his role as Corporate Vice President and Group President, effective September 1, 2025, to pursue a senior leadership position outside the cardiovascular sector. Daniel J. Lippis, currently the Corporate Vice President for Japan, Greater China, and Asia Pacific, will assume responsibility for the Transcatheter Aortic Valve Replacement division, potentially impacting the company’s strategic direction in this area.

The most recent analyst rating on (EW) stock is a Buy with a $90.00 price target. To see the full list of analyst forecasts on Edwards Lifesciences stock, see the EW Stock Forecast page.

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.