Edwards Lifesciences (EW) AI Stock Analysis

• Market Cap: $43.88B
• Dividend Yield: N/A
• Average Volume (3M): 4.97M
• Price to Earnings (P/E): 30.3
• Beta (1Y): 0.90
• Revenue Growth: -9.84%
• EPS Growth: -35.77%
• Country: US
• Employees: 15,800
• Sector: Healthcare
• Sector Strength: 46
• Industry: Medical - Devices
• EPS (TTM): 0.64
• Shares Outstanding: 585,755,500
• 10 Day Avg. Volume: 5,381,898
• 30 Day Avg. Volume: 4,971,709
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 9.28
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $80.25
• Price Target Upside: 8.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

Edwards Lifesciences demonstrates strong financial stability with a robust balance sheet and positive cash flow. Positive momentum in technical indicators supports the stock price, but a high P/E ratio suggests limited valuation upside. Recent earnings call highlights growth and strategic progress, though market challenges and tariff impacts pose risks. Corporate event initiatives further support long-term employee engagement.

Positive Factors

FDA Approval

FDA approval of the SAPIEN 3 platform in asymptomatic patients is expected to unlock a large commercial opportunity for Edwards Lifesciences.

Q1 Performance

Edwards Lifesciences posted better-than-expected TAVR growth, consistent with recent survey data, and continued momentum in TMTT.

Revenue Guidance

Management raised its FY25 TMTT revenue guidance by ~5% at the midpoint and maintained its FY25 overall company and TAVR revenue guidance ranges.

Negative Factors

Competitive Pressure

Continued weakness in Japan due to lower procedure growth and competitive pressure is a challenge for Edwards Lifesciences.

Hospital Capacity Constraints

Hospital capacity constraints driven by emerging structural heart therapies have negatively impacted US TAVR volumes in recent quarters.

Pricing Environment

Concerns exist about the pricing environment for TAVR, as some competitors have been pricing at sizable discounts.

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 medical devices and technologies. The company's key revenue streams include its transcatheter heart valve therapy products, which account for a substantial portion of its income as they cater to the growing demand for less invasive heart surgery alternatives. Additionally, Edwards earns revenue from its surgical heart valve therapy products, which include mechanical and tissue heart valves used in open-heart surgeries. Another significant revenue source is its critical care business, which offers advanced hemodynamic monitoring systems used in intensive care settings. The company also benefits from strategic partnerships with hospitals, healthcare providers, and research institutions, enhancing its market reach and product development capabilities. Factors such as an aging population and increasing prevalence of heart disease contribute to the demand for Edwards Lifesciences' products, further supporting its revenue growth.

Edwards Lifesciences Financial Statement Overview

Summary

Edwards Lifesciences exhibits financial resilience with a solid balance sheet, characterized by a low debt-to-equity ratio and strong equity position. Despite operational challenges reflected in negative EBIT and EBITDA margins, net income remains robust due to non-core factors. Cash flow generation is efficient, though strategic shifts cause fluctuations in investing and financing activities.

Income Statement

The company's revenue has fluctuated, with a decline in 2024 from the previous year. Gross profit margin remained strong, but the negative EBIT and EBITDA margins in 2024 indicate operational challenges. Net income surged in 2024 due to other factors possibly not related to core operations, suggesting potential non-recurring items.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio and a strong equity position, indicating financial stability. The equity ratio is high, suggesting lower reliance on debt. However, the slight increase in liabilities should be monitored.

Cash Flow

Operating cash flow declined in 2024, but the company maintained positive free cash flow. The free cash flow to net income ratio was favorable, indicating efficient cash generation relative to profits. However, fluctuations in investing and financing activities suggest strategic shifts.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.44B	6.00B	5.38B	5.23B	4.39B
	Gross Profit
4.32B	4.63B	4.30B	3.98B	3.31B
	EBIT
1.38B	1.53B	1.75B	1.35B	1.63B
	EBITDA
1.72B	1.77B	1.96B	1.86B	1.07B
	Net Income Common Stockholders
4.17B	1.40B	1.52B	1.50B	823.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.98B	1.64B	1.22B	1.47B	1.40B
	Total Assets
13.06B	9.36B	8.29B	8.50B	7.24B
	Total Debt
700.00M	694.90M	691.30M	690.30M	694.90M
	Net Debt
-2.35B	-449.10M	-77.70M	-172.50M	-488.30M
	Total Liabilities
2.99B	2.64B	2.49B	2.67B	2.66B
	Stockholders Equity
10.00B	6.65B	5.81B	5.84B	4.57B
Cash Flow		Free Cash Flow
289.90M	629.50M	953.40M	1.40B	647.00M
	Operating Cash Flow
542.30M	895.80M	1.22B	1.73B	1.05B
	Investing Cash Flow
2.31B	173.80M	252.30M	-1.72B	-531.10M
	Financing Cash Flow
-983.00M	-711.00M	-1.58B	-356.30M	-486.90M

Edwards Lifesciences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 73.68
• 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 73.68 is above the 20-day moving average (MA) of 73.29, above the 50-day MA of 71.60, and above the 200-day MA of 70.05, indicating a bullish trend. The MACD of 1.05 indicates Positive momentum. The RSI at 52.18 is Neutral, neither overbought nor oversold. The STOCH value of 16.43 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	$231.50B	17.20	30.66%	1.71%	5.00%	139.98%
BSX	78 Outperform	$154.04B	76.29	9.65%	―	19.35%	14.31%
SYK	78 Outperform	$144.36B	51.04	14.26%	0.86%	10.76%	-15.22%
DXCM	76 Outperform	$32.00B	60.26	23.72%	―	9.11%	-17.87%
MDT	75 Outperform	$105.58B	25.36	8.42%	3.35%	2.72%	4.48%
EW	71 Outperform	$43.88B	30.26	16.73%	―	-9.84%	-35.77%
Sector *	52 Neutral	$5.15B	3.56	-42.19%	2.83%	14.48%	-0.49%

Edwards Lifesciences Corporate Events

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.

Spark’s Take on EW Stock

According to Spark, TipRanks’ AI Analyst, EW is a Outperform.

Edwards Lifesciences has a robust financial foundation with strong cash flow and balance sheet. The earnings call outlined significant growth in key segments and strategic progress, though potential impacts from tariffs and market challenges in Japan pose risks. Technical indicators suggest positive momentum, but the high P/E ratio may limit upside potential.

To see Spark’s full report on EW stock, click here.