Edwards Lifesciences Corp (EW, Financial) has experienced a notable uptick in its stock performance, with a market capitalization that now stands at $47.88 billion. The current price of $78.94 reflects a slight decrease of 1.24% over the past week. However, looking at a broader time frame, the stock has surged by 18.51% over the past three months. This growth trajectory is underscored by the company's GF Value, which is currently at $116.85, up from the past GF Value of $114.97. According to GuruFocus' valuation, Edwards Lifesciences is significantly undervalued, a status that has remained consistent over the past quarter.
Introduction to Edwards Lifesciences Corp
Edwards Lifesciences Corp, a leader in the medical devices and instruments industry, was spun off from Baxter International in 2000. The company has carved out a niche in structural heart disease devices, boasting a comprehensive portfolio that includes surgical tissue heart valves, transcatheter valve technologies, and monitoring systems critical for heart function assessment during surgery. With a global sales footprint, Edwards Lifesciences garners approximately 55% of its total sales from international markets, highlighting its expansive reach and influence in the healthcare sector.
Assessing Profitability
Edwards Lifesciences' financial health is robust, as evidenced by its Profitability Rank of 10/10. The company's Operating Margin stands at an impressive 30.05%, ranking higher than 94.38% of its peers. Its ROE is equally strong at 23.05%, outperforming 93.7% of competitors. Additionally, Edwards Lifesciences' ROA of 16.28% surpasses 95.61% of industry players, and its ROIC of 23.40% is better than 92.01% of the market. The company has also maintained profitability for the past 10 years, a testament to its financial resilience and operational efficiency.
Growth Prospects
Edwards Lifesciences' growth prospects are equally promising, with a Growth Rank of 10/10. The company has demonstrated consistent growth, with a 3-Year Revenue Growth Rate per Share of 8.10% and a 5-Year Revenue Growth Rate per Share of 10.60%. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 8.57%. Earnings growth also remains strong, with a 3-Year EPS without NRI Growth Rate of 12.30% and a 5-Year EPS without NRI Growth Rate of 19.50%. The EPS Growth Rate (Future 3Y To 5Y Est) is estimated at 5.95%, indicating sustained profitability in the coming years.
Investor Confidence
Confidence in Edwards Lifesciences is reflected in the holdings of major investors. The Vanguard Health Care Fund (Trades, Portfolio) holds 9,386,095 shares, representing a 1.55% share percentage. Ken Fisher (Trades, Portfolio) follows with 7,314,467 shares, accounting for 1.21% of shares, and Frank Sands (Trades, Portfolio) holds 4,536,176 shares, or 0.75% of the company. These substantial investments by prominent investors underscore the company's strong market position and potential for continued growth.
Competitive Landscape
Edwards Lifesciences operates in a competitive landscape, with key players such as DexCom Inc (DXCM, Financial) with a market cap of $46.09 billion, Zimmer Biomet Holdings Inc (ZBH, Financial) at $26.3 billion, and Steris PLC (STE, Financial) at $21.97 billion. Despite the stiff competition, Edwards Lifesciences' market cap of $47.88 billion positions it as a leading force within the medical devices and instruments industry.
Conclusion
In summary, Edwards Lifesciences Corp's financial health and market performance are strong. The company's stock is significantly undervalued according to the GF Value, and it has outperformed many of its competitors in terms of profitability and growth. With a solid track record of profitability and promising growth estimates, Edwards Lifesciences is well-positioned to maintain its leadership in the medical device sector and offer value to its shareholders.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
