Edwards Lifesciences (EW) AI Stock Analysis

• Market Cap: $45.54B
• Dividend Yield: N/A
• Average Volume (3M): 3.72M
• Price to Earnings (P/E): 53.0
• Beta (1Y): 0.86
• Revenue Growth: -5.23%
• EPS Growth: -39.83%
• Country: US
• Employees: 15,800
• Sector: Healthcare
• Sector Strength: 47
• Industry: Medical - Devices
• EPS (TTM): 0.67
• Shares Outstanding: 587,100,000
• 10 Day Avg. Volume: 3,501,464
• 30 Day Avg. Volume: 3,715,739
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 7.51
• Enterprise Value/Gross Profit: 9.51
• Enterprise Value/Ebitda: 23.93
• 1Y Price Target: $88.86
• Price Target Upside: 14.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 25

• Rating: 78 Outperform
• Price Target: $89.00 ▲(14.74% Upside)

Edwards Lifesciences' strong earnings call performance and robust financial health are the primary drivers of its stock score. The company's positive sales growth and increased guidance highlight its growth potential. However, the high P/E ratio and cash flow challenges slightly temper the overall score.

Positive Factors

Revenue Growth

The company's strong sales growth and increased guidance demonstrate robust demand for its products, indicating a solid market position and potential for continued expansion.

Product Approvals

Securing product approvals in key markets enhances the company's competitive edge and expands its addressable market, supporting long-term growth prospects.

Leadership Transition

The leadership transition in the TAVR division is expected to maintain strategic continuity and drive future growth, leveraging Dan Lippis' regional expertise.

Negative Factors

Cash Flow Challenges

Decreasing free cash flow may limit the company's ability to fund new projects and investments, potentially impacting its long-term growth and financial flexibility.

Manufacturing Costs

Increased manufacturing costs are pressuring margins, which could affect profitability if not managed effectively, posing a risk to financial performance.

Regulatory Challenges

Regulatory hurdles, such as the blocked acquisition, can limit strategic expansion opportunities and delay access to new technologies, impacting competitive positioning.

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 heart valve products and monitoring solutions. The company has established key revenue streams from its transcatheter heart valve systems, surgical heart valves, and hemodynamic monitoring products. Significant partnerships with hospitals and healthcare providers enhance its market reach and distribution capabilities. Additionally, ongoing innovation and expansion into emerging markets contribute to revenue growth. The company also benefits from a strong focus on research and development, which leads to the introduction of new products and technologies, further solidifying its position in the cardiovascular medical device sector.

Edwards Lifesciences Financial Statement Overview

Summary

Edwards Lifesciences exhibits strong financial health with high profitability and a solid balance sheet. The company has a high gross profit margin and a robust return on equity. However, challenges in cash flow generation and a slight decline in net profit margin suggest areas for improvement.

Income Statement

Edwards Lifesciences demonstrates strong profitability with a high gross profit margin of 78.8% and a net profit margin of 72.9% in the TTM. Revenue growth is modest at 2.6%, indicating stable but slow growth. The EBIT and EBITDA margins are healthy, reflecting efficient operations. However, the slight decline in net profit margin from the previous year suggests potential cost pressures.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.067, indicating low leverage and financial stability. The return on equity is impressive at 41.3%, showcasing strong profitability relative to shareholder equity. The equity ratio is solid, suggesting a strong capital structure. However, the slight increase in debt levels warrants monitoring.

Cash Flow

Operating cash flow is positive, but the free cash flow has decreased by 6.9% in the TTM, indicating potential challenges in cash generation. The operating cash flow to net income ratio is moderate at 0.57, suggesting room for improvement in converting income to cash. The free cash flow to net income ratio is strong at 76.5%, reflecting efficient cash management despite recent declines.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.69B	5.44B	5.01B	5.38B	5.23B	4.39B
Gross Profit	4.49B	4.32B	3.97B	4.22B	4.01B	3.29B
EBITDA	1.78B	1.72B	1.53B	1.96B	1.89B	1.07B
Net Income	4.14B	4.17B	1.40B	1.52B	1.50B	823.40M
Balance Sheet
Total Assets	13.49B	13.06B	9.36B	8.29B	8.50B	7.24B
Cash, Cash Equivalents and Short-Term Investments	4.06B	3.98B	1.63B	1.22B	1.47B	1.40B
Total Debt	702.60M	700.00M	685.10M	691.30M	690.30M	694.90M
Total Liabilities	2.88B	2.99B	2.64B	2.49B	2.67B	2.66B
Stockholders Equity	10.55B	10.00B	6.65B	5.81B	5.84B	4.57B
Cash Flow
Free Cash Flow	607.90M	289.90M	629.50M	953.40M	1.40B	647.00M
Operating Cash Flow	794.90M	542.30M	895.80M	1.22B	1.73B	1.05B
Investing Cash Flow	2.04B	2.31B	173.80M	252.30M	-1.72B	-531.10M
Financing Cash Flow	-1.15B	-983.00M	-711.00M	-1.58B	-356.30M	-486.90M

Edwards Lifesciences Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 77.57
• 50DMA: Negative
• 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 Neutral. The current price of 77.57 is below the 20-day moving average (MA) of 80.21, below the 50-day MA of 78.83, and above the 200-day MA of 74.57, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 37.34 is Neutral, neither overbought nor oversold. The STOCH value of 13.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$232.75B	16.72	31.01%	1.73%	5.85%	152.28%
EW	78 Outperform	$45.54B	52.96	15.71%	―	-5.23%	-39.83%
SYK	75 Outperform	$146.55B	50.72	14.25%	0.87%	11.36%	-15.66%
BSX	75 Outperform	$152.19B	61.13	11.71%	―	21.45%	36.19%
DXCM	73 Outperform	$29.89B	53.36	22.83%	―	9.30%	-14.95%
Sector *	51 Neutral	$7.92B	-0.36	-43.38%	2.24%	22.38%	-2.16%
SSKN	47 Neutral	$8.27M	―	-235.41%	―	0.36%	-17.20%

Edwards Lifesciences Corporate Events

Edwards Lifesciences Enters Accelerated Share Repurchase Agreement

On August 19, 2025, Edwards Lifesciences Corporation announced its entry into an accelerated share repurchase agreement, which may impact its financial strategies and shareholder value.

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.

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.