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Edwards Lifesciences Corp EW

Morningstar Rating
$87.02 +1.80 (2.11%)
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Company Report

Edwards Lifesciences Earnings: Progress in Penetrating Pew Patient Pools Anticipated in 2024

Narrow-moat Edwards Lifesciences finished 2023 with strong performance that slightly exceeded our expectations on the top line but met them on the bottom line. Our modeling adjustments were immaterial and we’re leaving our fair value estimate unchanged at $86. Quarterly revenue rose 13% in constant currency, with broad strength across all product categories. Consistent with recent quarters, transcatheter aortic valve replacement sales grew in the low-double digits. With data from the Early TAVR trial expected in the fall, we think favorable data among the asymptomatic severe aortic stenosis patients could shore up demand through our explicit forecast period, which could ease underlying market concerns that the pool of aortic stenosis patients has been exhausted.

Price vs Fair Value

EW is trading at a 1% premium.
Price
$87.02
Fair Value
$99.00
Uncertainty
High
1-Star Price
$829.10
5-Star Price
$35.20
Economic Moat
Pbmps
Capital Allocation
Jwdlnmygyp

Bulls Say, Bears Say

Bulls

Edwards' efforts to focus on efficiency and higher-margin products have paid off, as gross margins increased from 47% in 2000 to 80% in 2022.

Bears

Edwards' ambitions to diversify into minimally invasive medical technologies place the firm in direct competition with much larger competitors, such as Medtronic and Abbott, which can easily bid up prices for emerging technologies that Edwards couldn't match.

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News

Trading Information

Previous Close Price
$85.22
Day Range
$85.3287.59
52-Week Range
$60.5794.87
Bid/Ask
$85.42 / $88.00
Market Cap
$52.33 Bil
Volume/Avg
6.8 Mil / 4.3 Mil

Key Statistics

Price/Earnings (Normalized)
34.67
Price/Sales
8.83
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
1.68%

Company Profile

Spun off from Baxter International in 2000, Edwards Lifesciences designs, manufactures, and markets a range of medical devices and equipment for advanced stages of structural heart disease. It has established itself as a leader across key products, including surgical tissue heart valves, transcatheter valve technologies, surgical clips, catheters, and monitoring systems used to measure a patient's heart function during surgery. The firm derives about 55% of its total sales from outside the U.S.
Sector
Healthcare
Industry
Medical Devices
Stock Style Box
Mid Core
Total Number of Employees
19,800

Competitors

Valuation

Metric
EW
ABT
MDT
Price/Earnings (Normalized)
34.6727.0415.72
Price/Book Value
7.875.392.18
Price/Sales
8.835.233.51
Price/Cash Flow
37.2921.5615.48
Price/Earnings
EW
ABT
MDT

Financial Strength

Metric
EW
ABT
MDT
Quick Ratio
2.081.161.46
Current Ratio
3.381.642.30
Interest Coverage
87.9810.868.86
Quick Ratio
EW
ABT
MDT

Profitability

Metric
EW
ABT
MDT
Return on Assets (Normalized)
17.13%10.63%7.75%
Return on Equity (Normalized)
24.32%20.87%13.75%
Return on Invested Capital (Normalized)
21.12%14.81%9.87%
Return on Assets
EW
ABT
MDT
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MDT
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