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Edwards Lifesciences logged a 2.3% change during today's evening session, and is now trading at a price of $90.9 per share.

Over the last year, Edwards Lifesciences logged a 1.6% change, with its stock price reaching a high of $96.12 and a low of $60.57. Over the same period, the stock underperformed the S&P 500 index by -24.7%. AThe company's 50-day average price was $87.56. Edwards Lifesciences Corporation provides products and technologies for structural heart disease and critical care monitoring in the United States, Europe, Japan, and internationally. Based in Irvine, CA, the Large-Cap Health Care company has 19,800 full time employees. Edwards Lifesciences has not offered a dividend during the last year.

Wider Gross Margins Than the Industry Average of 42.38%:

2018 2019 2020 2021 2022 2023
Revenue (M) $3,723 $4,348 $4,386 $5,232 $5,382 $6,005
Gross Margins 75% 74% 75% 76% 80% 77%
Net Margins 19% 24% 19% 28% 28% 23%
Net Income (M) $722 $1,047 $823 $1,503 $1,522 $1,402
Net Interest Expense (M) $30 $21 $16 $18 $19 $18
Depreciation & Amort. (M) $77 $89 $107 $135 $140 $145
Diluted Shares (M) 641 637 632 631 624 609
Earnings Per Share $1.13 $1.64 $1.3 $2.38 $2.44 $2.3
EPS Growth n/a 45.13% -20.73% 83.08% 2.52% -5.74%
Avg. Price $47.43 $66.6 $76.09 $102.64 $107.47 $90.9
P/E Ratio 41.24 39.64 58.08 42.59 44.05 39.35
Free Cash Flow (M) $688 $928 $647 $1,406 $974 $643
CAPEX (M) $239 $254 $407 $326 $245 $253
EV / EBITDA 36.05 33.11 46.92 34.98 35.38 32.61
Total Debt (M) $594 $594 $595 $596 $596 $597
Net Debt / EBITDA -0.15 -0.47 -0.59 -0.15 -0.09 -0.33
Current Ratio 2.61 3.31 3.46 3.08 3.03 3.38

Edwards Lifesciences benefits from an excellent current ratio of 3.38, growing revenues and a flat capital expenditure trend, and wider gross margins than its peer group. The company's financial statements show a strong EPS growth trend and healthy leverage levels. Furthermore, Edwards Lifesciences has positive cash flows.

Edwards Lifesciences's Valuation Is in Line With Its Sector Averages:

Edwards Lifesciences has a trailing twelve month P/E ratio of 37.7, compared to an average of 27.53 for the Health Care sector. Based on its EPS guidance of $3.11, the company has a forward P/E ratio of 28.2. Edwards Lifesciences's PEG ratio is 3.16 on the basis of the 11.9% weighted average of the company and the broader market's EPS compound average growth rates. This suggests that the company's shares are overvalued. Furthermore, Edwards Lifesciences is likely overvalued compared to the book value of its equity, since its P/B ratio of 7.69 is higher than the sector average of 3.61. The company's shares are currently trading 282.6% below their Graham number. Ultimately, Edwards Lifesciences's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.

There's an Analyst Consensus of Some Upside Potential for Edwards Lifesciences:

The 26 analysts following Edwards Lifesciences have set target prices ranging from $70.0 to $107.0 per share, for an average of $96.32 with a buy rating. The company is trading -5.6% away from its average target price, indicating that there is an analyst consensus of some upside potential.

Edwards Lifesciences has a very low short interest because 1.3% of the company's shares are sold short. Institutions own 84.7% of the company's shares, and the insider ownership rate stands at 0.89%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $4,814,463,495.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.