Edwards Lifesciences (EW)
Health Care · $51.3B market cap · SEC CIK 0001099800
fundamentals score out of 100
Next reports on Oct 28, 2026, after the close, with analysts expecting $0.76 in earnings per share.
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 14.6% year over year.
- Barely leveraged. Debt is 0.06× equity.
- Gross margin of 78% absorbs cost shocks.
- Current assets cover the near-term bills 4.5 times over.
The case against
- Earnings per share down 75.2%.
- Pricey at 51.1× earnings, against a long-run market average nearer 20×.
- Price/sales of 7.9× is higher than 86% 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. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 29 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 33 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 67 |
| Momentumhow the price has behaved lately | 64 |
| Stabilityhow violently it moves, what it owes and what it pays you | 89 |
- Each factor except momentum is half fixed thresholds, half rank among the 59 Health Care companies.
Key numbers
| Price / earnings | 51.1× |
|---|---|
| Price / book | 4.91× |
| Price / sales | 7.9× |
| Revenue growth (YoY) | +14.6% |
| EPS growth (YoY) | -75.2% |
| Gross margin | 78% |
| Operating margin | 18% |
| Net margin | 15% |
| Return on equity | 10% |
| Debt / equity | 0.06× |
| Current ratio | 4.52 |
| Dividend yield | none |
| Beta | 0.85 |
| 52-week range | $72.30 – $96.29 |
| Position in that range | 69% of the way up |
| 3-month return | +1.1% |
| 1-year return | +18.7% |
Five years of financials, as filed
Pulled from Edwards Lifesciences's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $6.1B | $5.4B | $5.0B | $4.5B | $5.2B |
| Gross profit | $4.7B | $4.3B | $4.0B | $3.7B | $4.0B |
| Operating income | $1.3B | $1.4B | $1.3B | $1.5B | $1.7B |
| Net income | $1.1B | $4.2B | $1.4B | $1.5B | $1.5B |
| Operating cash flow | $1.6B | $542M | $896M | $1.2B | $1.7B |
| Capital expenditure | $260M | $252M | $253M | $245M | $326M |
| Total assets | $13.7B | $13.1B | $9.4B | $8.3B | $8.5B |
| Total liabilities | $3.4B | $3.0B | $2.6B | $2.5B | $2.7B |
| Shareholder equity | $10.3B | $10.0B | $6.7B | $5.8B | $5.8B |
| Cash | $2.9B | $3.0B | $1.1B | $769M | $863M |
| Long-term debt | $598M | $598M | $597M | $596M | $596M |
| Free cash flow | $1.3B | $290M | $643M | $974M | $1.4B |
| Gross margin | 78.0% | 79.5% | 80.5% | 83.8% | 76.1% |
| Operating margin | 20.8% | 25.3% | 26.1% | 33.6% | 32.3% |
| Net margin | 17.7% | 76.7% | 28.0% | 34.1% | 28.7% |
| Diluted shares | 586M | 599M | 609M | 624M | 631M |
Share count is down 7.2% over 4 years. Buybacks have been shrinking the pie.
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
- Global Macroeconomic and Industry Risks
- 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