Edwards Lifesciences Corp (EW, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $93.45, Edwards Lifesciences Corp has witnessed a daily loss of 0.38%, marked against a three-month change of 37.43%. A thorough analysis, underlined by the GF Score, suggests that Edwards Lifesciences Corp is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 8/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 7/10
- Momentum rank: 10/10
Edwards Lifesciences Corp's GF Score of 97 out of 100 signals the highest outperformance potential, with particular strength in growth and momentum, and commendable financial strength and profitability.
Understanding Edwards Lifesciences Corp Business
Edwards Lifesciences Corp, with a market cap of $56.19 billion and sales of $6.00 billion, is a pioneer in medical devices for structural heart disease. Spun off from Baxter International in 2000, it has cemented its leadership in surgical tissue heart valves, transcatheter valve technologies, and critical monitoring systems. Approximately 55% of its total sales are derived from international markets, showcasing its global footprint.
Financial Strength Breakdown
Edwards Lifesciences Corp's financial strength is evident in its balance sheet, with an Altman Z-Score of 15.71, indicating low risk of financial distress. The company's strategic debt management is reflected in its favorable Debt-to-Revenue ratio of 0.12, further solidifying its financial health.
Profitability Rank Breakdown
Edwards Lifesciences Corp's profitability is impressive, with an increasing Operating Margin over the past five years, reaching 28.81% in 2023. The company's Gross Margin has also consistently risen, indicating efficient revenue conversion into profit. A Predictability Rank of 3.5 stars out of five further enhances investor confidence in its operational performance.
Growth Rank Breakdown
Edwards Lifesciences Corp's high Growth rank reflects its commitment to expansion. The company's 3-Year Revenue Growth Rate of 12.4% outperforms 62.74% of its industry peers. Its EBITDA growth rates over the past three and five years highlight its growth capabilities.
Conclusion: Edwards Lifesciences Corp's Position for Outperformance
Considering Edwards Lifesciences Corp's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors seeking similar opportunities can explore more companies with strong GF Scores using the GF Score Screen.
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.
