Edwards Lifesciences (EW)

Health Care · $59.0B market cap · SEC CIK 0001099800

Next reports on Feb 8, 2027, after the close, with analysts expecting $0.70 in earnings per share.

52-week range $74.66 to $105.37. 1% below its 52-week high and 39% above its low.

The case for EW

• Generated $1.3B of free cash flow in FY2025, 22% of revenue.
• Holds more cash ($2.9B) than long-term debt ($598M).
• Revenue growing 13.4% year over year.
• Barely leveraged. Debt is 0.06× equity.
• Gross margin of 78% absorbs cost shocks.
• Moves less than the market (beta 0.75).

The case against

• Expensive for its growth: 57.8× earnings, where 9% a year of growth would justify about 22×.
• Earnings per share down 24.2%.
• Price/sales of 8.8× is higher than 86% of Health Care companies.
• Free-cash-flow yield of 2.3% is lower than 87% of Health Care companies.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Health Care companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Each factor except momentum is half fixed thresholds, half rank among the 59 Health Care companies.

The financials

The financials, five years deep

Pulled from Edwards Lifesciences's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What Edwards Lifesciences says it does

Overview Edwards Lifesciences Corporation is the leading global structural heart innovation company, driven by a passion to improve patient lives. Through breakthrough technologies, world-class evidence, and meaningful partnerships with clinicians and healthcare stakeholders, our employees are inspired by our patient-focused culture to deliver life-changing innovations to those who need them most. Edwards Lifesciences has been a leader in our field for over six decades. Since our founder, Miles “Lowell” Edwards, first dreamed of using engineering to address diseases of the human heart, we have steadily built a company on the premise of imagining, building, and realizing a better future for patients. Our innovative work encompasses both surgical and transcatheter therapies. In addition, our unique portfolio of repair and replacement technologies for aortic, mitral, tricuspid and pulmonic heart valves provides a broad set of treatment…

Risk factors EW lists in its 10-K

• Failure to successfully innovate and develop new and differentiated products in a timely manner and effectively market these products could have a material effect on our prospects
• Unsuccessful clinical trials or procedures relating to products could have a material adverse effect on our prospects
• If we or one of our suppliers or logistics partners encounters manufacturing, logistics, safety, or quality problems, our business could be materially adversely affected
• We operate in highly competitive markets, and if we do not compete effectively, our business will be harmed
• The success of many of our products depends upon certain key physicians, research institutions, and hospital systems
• We are subject to risks associated with public health crises
• We rely on third parties in the design, manufacture, and sterilization of our products. Any failure by or loss of a vendor could result in delays and increased costs, which may adversely affect our business
• Our use of, or our failure to effectively and timely utilize, emerging technologies, including AI, could adversely impact our business and financial results
• Our business and results of operations may be adversely affected if we are unable to recruit and retain qualified talent or are otherwise unsuccessful in the execution of our management succession plans
• We are subject to risks associated with the sale of our Critical Care product group
• We may be adversely impacted by global economic, political and social conditions
• Our international operations subject us to certain business risks
• If government or other third-party payors decline to reimburse our customers for our products or impose other cost containment measures to reduce reimbursement levels, our ability to profitably sell our products will be harmed
• Continued consolidation in the health care industry could have an adverse effect on our sales and results of operations
• Third parties may claim we are infringing their intellectual property, and we could suffer significant litigation or licensing expenses or be prevented from selling products
• Health care legislation and other regulations may adversely impact access to and demand for our products
• Government Regulation and Other Matter
• We face a number of risks related to our
• income taxes in the United States as well as other jurisdictions
• Failure to comply with data privacy and security laws could have a material adverse effect on our business
• We may incur losses from product liability or other claims that could adversely affect our operating results
• Use of our products in unapproved circumstances could expose us to liabilities
• Our operations are subject to environmental, health, and safety regulations that could result in substantial costs
• Climate change, or legal, regulatory or market measures to address climate change, may materially adversely
• affect our financial condition and business operations
• We are subject to risks arising from concerns and/or regulatory actions relating to animal-borne illnesses, including “mad cow disease.”

Filings

Other Health Care companies