# Edwards Lifesciences (EW.US)

Canonical: https://gigainvestors.com/s/EW

Analysis as of: 2026-10-16T07:28:24.167Z. Financial observations: FY1999–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $88.10 per share; close as of 2026-10-15.

Estimated value: low $51.07 per share, central $71.21 per share, high $82.45 per share. Buy at or below the central value $71.21 per share. Valuation as of 2026-10-16T07:28:24.167Z; scenarios are not confidence intervals.

Expected annual return: 8.6% at the stated quote. About 8.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.07×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.29×

- FY2018: 0.29×

- FY2019: 0.28×

- FY2020: 0.30×

- FY2021: 0.31×

- FY2022: 0.32×

- FY2023: 0.26×

- FY2024: 0.25×

- FY2025: 0.27×

- LTM to Jun 2026: 0.28×

### moat: pass

- ROIC, median of available years: 35.7%

- ROIC, second-lowest year: 25.1%

- Typical minus recent gross margin: -1.2 pp

- Typical gross margin (annual median): 76.8%

- Recent gross margin (lower of latest and 3-year median): 78.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.0%

- ROIC including acquisitions, ten-year median: 23.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 43.0%

- FY2018: 62.2%

- FY2019: 50.2%

- FY2020: 43.2%

- FY2021: 36.5%

- FY2022: 34.8%

- FY2023: 29.5%

- FY2024: 25.1%

- FY2025: 26.9%

- LTM to Jun 2026: 24.7%

### economics: pass

- Owner earnings / net income, 5-yr: 0.98×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $9.0B

- Net income, five-year total: $9.2B

- Return on incremental invested capital: 24.5%

- Working capital / revenue, annual change: 0.4 pp

- Working capital / revenue, change between three-year averages: 3.4 pp

- Working capital / revenue, final three-year average: 29.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.95×

- FY2023: 1.00×

- FY2024: 0.98×

- FY2025: 1.00×

- LTM to Jun 2026: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 43.0% vs 26.9%

- Per-share earnings: 0.87 to 2.30 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.2%

- Ordinary dilution, 5-year annual growth: -1.5%

- Market cap gain: $30B

- Cumulative retained earnings: $10B

- Diluted shares, 10-year annual growth: -1.2%

- Diluted shares, 5-year annual growth: -1.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 12.9%

- Per-share value change: $1.43

- Per-share value, starting three-year median: $0.87

- Per-share value, ending three-year median: $2.30

- Buybacks concentrated in cheaper years (correlation): 0.78

- Average buyback yield: 2.2%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $2.4B

- Cumulative net income, 10 years: $13B

- ROIC, first three-year median: 43.0%

- ROIC, last three-year median: 26.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.87

- FY2017: $0.96

- FY2018: $1.13

- FY2019: $1.64

- FY2020: $1.30

- FY2021: $2.38

- FY2022: $2.44

- FY2023: $2.30

- FY2024: $6.97

- FY2025: $1.83

### accounting: pass

- Sloan accruals: -3.8%

- Receivables to sales index (DSRI): 1.12×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 9.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.49×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.28×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.0%

- FY2017: -6.6%

- FY2018: -3.8%

- FY2019: -2.0%

- FY2020: -3.2%

- FY2021: -2.7%

- FY2022: 3.7%

- FY2023: 5.4%

- FY2024: 27.8%

- FY2025: -3.8%

## Holders

- [Robert Torray](https://gigainvestors.com/T): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [David Rolfe](https://gigainvestors.com/WP): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 32% since Dec 2021 · "However, ongoing currency swings and intense competition could weigh on Edwards' financial results." (finance.yahoo.com, Aug 2026) · sales +7.3%

Story as of 2026-10-16T09:58:43.509Z; price observation 2026-10-15.

Price needs cash profits to grow 10.4% a year for ten years

- 2025-04-24: Edwards Lifesciences (NYSE:EW) Projects 2025 Sales Over US$5.7 Billion With Strong Earnings ([finance.yahoo.com](https://finance.yahoo.com/news/edwards-lifesciences-nyse-ew-projects-182517631.html))

- 2025-05-02: Edwards Lifesciences (NYSE:EW) Receives FDA Approval For Groundbreaking TAVR Therapy For Asymptomatic Patients ([finance.yahoo.com](https://finance.yahoo.com/news/edwards-lifesciences-nyse-ew-receives-175701449.html))

- 2025-10-31: EW Stock Gains on Q3 Earnings and Revenue Beat, Margins Crash ([finance.yahoo.com](https://finance.yahoo.com/news/ew-stock-gains-q3-earnings-141700194.html))

- 2026-01-10: U.S. Court Blocks Edwards Lifesciences' Acquisition Of JenaValve; Company Revises 2026 Adj. EPS View ([nasdaq.com](https://www.nasdaq.com/articles/us-court-blocks-edwards-lifesciences-acquisition-jenavalve-company-revises-2026-adj-eps))

- 2026-02-11: Edwards Wavers Analysts Debate Its Earnings Miss Amid Hefty TAVR Investments ([finance.yahoo.com](https://finance.yahoo.com/m/f0d9f12c-20eb-3e27-9a00-ef0c9dde7640/edwards-wavers-analysts.html))

- 2026-04-24: Edwards Lifesciences raises FY26 guidance following strong Q1 ([finance.yahoo.com](https://finance.yahoo.com/sectors/healthcare/articles/edwards-lifesciences-raises-fy26-guidance-142546657.html))

### Sales · FY2025–2026

sales +7.3%; source https://www.sec.gov/Archives/edgar/data/1099800/000109980026000009/ew-20251231.htm; observed 2026-02-25.

- FY2017: $3.4B 

- FY2018: $3.7B 

- FY2019: $4.3B 

- FY2020: $4.4B 

- FY2021: $5.2B 

- FY2022: $5.4B 

- FY2023: $6.0B 

- FY2024: $5.4B 

- FY2025: $6.1B 

- FY2026: $6.5B 

### Gross margin · FY2026

gross margin 78%; source https://www.sec.gov/Archives/edgar/data/1099800/000109980026000009/ew-20251231.htm; observed 2026-02-25.

- FY2017: 74.3% 

- FY2018: 75.2% 

- FY2019: 73.4% 

- FY2020: 74.9% 

- FY2021: 76.6% 

- FY2022: 78.3% 

- FY2023: 77.0% 

- FY2024: 79.5% 

- FY2025: 78.1% 

- FY2026: 78.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in medical devices; annual sales are USD 6.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1099800/000109980026000009/ew-20251231.htm (filed 2026-02-25); FY2025: revenue 6067600000; grossProfit 4740700000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 77% to 79.5% during 2023–25; it earns 35.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2023: grossProfit / revenue = 77%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2024: grossProfit / revenue = 79.5%.

- Source: https://www.sec.gov/Archives/edgar/data/1099800/000109980026000009/ew-20251231.htm (filed 2026-02-25); FY2025: grossProfit / revenue = 78.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); 10-year return on capital observations [[2017,0.42952047625278034],[2018,0.6220737968114323],[2019,0.501787907357327],[2020,0.4322029999856868],[2021,0.36546437269574095],[2022,0.34754944388589126],[2023,0.2947769352829034],[2024,0.25137358156917466],[2025,0.26891875277128413],[2026,0.24675442567490935]]; median 0.3565069082908161. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 78% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1099800/000109980026000009/ew-20251231.htm (filed 2026-02-25); Gross margin observations: [[2021,0.7657142857142857],[2022,0.7831450653983353],[2023,0.7702171596056488]]; range within 2 percentage points.

### Where the cash goes

Spends 9.7% of cash earnings on expansion; earns 24.5% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2016: growth capex 92353287.1318591; upkeep 125046712.8681409; owner earnings 515653287.13185906. Growth capex / owner earnings = 0.17909957996300563.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2017: growth capex 92794304.2138067; upkeep 82705695.7861933; owner earnings 621294304.2138067. Growth capex / owner earnings = 0.14935643797866413.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2018: growth capex 58117366.88990623; upkeep 183582633.11009377; owner earnings 616017366.8899062. Growth capex / owner earnings = 0.09434371498862773.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2019: growth capex 135337229.72829765; upkeep 143062770.27170235; owner earnings 1018437229.7282977. Growth capex / owner earnings = 0.1328871586562123.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2020: growth capex 9409706.043109894; upkeep 397890293.9568901; owner earnings 560909706.0431099. Growth capex / owner earnings = 0.016775794645255596.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2021: growth capex 166500000; upkeep 163300000; owner earnings 1503100000. Growth capex / owner earnings = 0.11077107311556117.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2022: growth capex 44027043.10812938; upkeep 220772956.89187062; owner earnings 1440727043.1081295. Growth capex / owner earnings = 0.03055890657341195.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2023: growth capex 121400000; upkeep 144900000; owner earnings 1402400000. Growth capex / owner earnings = 0.0865658870507701.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2024: growth capex 0; upkeep 252400000; owner earnings 4077400000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1099800/000109980026000009/ew-20251231.htm (filed 2026-02-25); FY2025: growth capex 103600000; upkeep 156600000; owner earnings 1073500000. Growth capex / owner earnings = 0.09650675360968794.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Incremental return on capital 0.24454728975270693, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Dividend observations: [[2016,253500000],[2017,0],[2018,688000000],[2019,18900000],[2020,140500000],[2021,158600000],[2022,146400000],[2023,169900000],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1099800/000109980026000009/ew-20251231.htm (filed 2026-02-25); FY2025: cash repurchases 893400000 USD.

### Are managers owners

Insiders own 0.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); EW.US SharesStats.PercentInsiders = 0.19499999999999998 percentage points; cache date 2026-10-16.

### What could break it

"We rely on third parties in the design, manufacture, and sterilization of our products." (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1099800/000109980026000009/ew-20251231.htm (filed 2026-02-25); We rely on third parties in the design, manufacture, and sterilization of our products.

### What the price says

The price assumes cash profits grow 10.4% yearly over ten years; actual growth was 9.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Ten-year compound average after fade. Initial solved rate 0.17944909609660054. Price 88.1; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.737281002114449 → FY2025 1.8325367019460568. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $31.74 per share

- 2016-11: $27.62 per share

- 2016-12: $31.23 per share

- 2017-01: $32.08 per share

- 2017-02: $31.35 per share

- 2017-03: $31.36 per share

- 2017-04: $36.56 per share

- 2017-05: $38.36 per share

- 2017-06: $39.41 per share

- 2017-07: $38.39 per share

- 2017-08: $37.89 per share

- 2017-09: $36.44 per share

- 2017-10: $34.08 per share

- 2017-11: $39.07 per share

- 2017-12: $37.57 per share

- 2018-01: $42.19 per share

- 2018-02: $44.56 per share

- 2018-03: $46.51 per share

- 2018-04: $42.45 per share

- 2018-05: $45.77 per share

- 2018-06: $48.52 per share

- 2018-07: $47.48 per share

- 2018-08: $48.08 per share

- 2018-09: $58.03 per share

- 2018-10: $49.20 per share

- 2018-11: $54.00 per share

- 2018-12: $51.06 per share

- 2019-01: $56.81 per share

- 2019-02: $56.43 per share

- 2019-03: $63.78 per share

- 2019-04: $58.69 per share

- 2019-05: $56.90 per share

- 2019-06: $61.58 per share

- 2019-07: $70.95 per share

- 2019-08: $73.95 per share

- 2019-09: $73.30 per share

- 2019-10: $79.46 per share

- 2019-11: $81.65 per share

- 2019-12: $77.76 per share

- 2020-01: $73.29 per share

- 2020-02: $68.28 per share

- 2020-03: $62.87 per share

- 2020-04: $72.50 per share

- 2020-05: $74.91 per share

- 2020-06: $69.11 per share

- 2020-07: $78.41 per share

- 2020-08: $85.84 per share

- 2020-09: $79.82 per share

- 2020-10: $71.69 per share

- 2020-11: $83.89 per share

- 2020-12: $91.23 per share

- 2021-01: $82.58 per share

- 2021-02: $83.10 per share

- 2021-03: $83.64 per share

- 2021-04: $95.52 per share

- 2021-05: $95.90 per share

- 2021-06: $103.57 per share

- 2021-07: $112.27 per share

- 2021-08: $117.18 per share

- 2021-09: $113.21 per share

- 2021-10: $119.82 per share

- 2021-11: $107.31 per share

- 2021-12: $129.55 per share

- 2022-01: $109.20 per share

- 2022-02: $112.37 per share

- 2022-03: $117.72 per share

- 2022-04: $105.78 per share

- 2022-05: $100.85 per share

- 2022-06: $95.09 per share

- 2022-07: $100.54 per share

- 2022-08: $90.10 per share

- 2022-09: $82.63 per share

- 2022-10: $72.43 per share

- 2022-11: $77.25 per share

- 2022-12: $74.61 per share

- 2023-01: $76.70 per share

- 2023-02: $80.44 per share

- 2023-03: $82.73 per share

- 2023-04: $87.98 per share

- 2023-05: $84.23 per share

- 2023-06: $94.33 per share

- 2023-07: $82.07 per share

- 2023-08: $76.47 per share

- 2023-09: $69.28 per share

- 2023-10: $63.72 per share

- 2023-11: $67.71 per share

- 2023-12: $76.25 per share

- 2024-01: $78.47 per share

- 2024-02: $84.87 per share

- 2024-03: $95.56 per share

- 2024-04: $84.67 per share

- 2024-05: $86.89 per share

- 2024-06: $92.37 per share

- 2024-07: $63.05 per share

- 2024-08: $69.96 per share

- 2024-09: $65.99 per share

- 2024-10: $67.01 per share

- 2024-11: $71.35 per share

- 2024-12: $74.03 per share

- 2025-01: $72.45 per share

- 2025-02: $71.62 per share

- 2025-03: $72.48 per share

- 2025-04: $75.49 per share

- 2025-05: $78.22 per share

- 2025-06: $78.21 per share

- 2025-07: $79.31 per share

- 2025-08: $81.34 per share

- 2025-09: $77.77 per share

- 2025-10: $82.45 per share

- 2025-11: $86.67 per share

- 2025-12: $85.25 per share

- 2026-01: $81.36 per share

- 2026-02: $86.47 per share

- 2026-03: $80.08 per share

- 2026-04: $83.50 per share

- 2026-05: $86.47 per share

- 2026-06: $90.46 per share

- 2026-07: $86.07 per share

- 2026-08: $90.75 per share

- 2026-09: $86.32 per share

- 2026-10: $85.27 per share

## Annual estimated value (USD per share)

- FY2016: low $14.04 per share, central $19.63 per share, high $22.74 per share

- FY2017: low $16.20 per share, central $22.74 per share, high $26.38 per share

- FY2018: low $16.15 per share, central $22.25 per share, high $25.88 per share

- FY2019: low $19.01 per share, central $25.11 per share, high $29.05 per share

- FY2020: low $16.25 per share, central $18.72 per share, high $21.46 per share

- FY2021: low $23.93 per share, central $33.92 per share, high $39.49 per share

- FY2022: low $30.36 per share, central $42.43 per share, high $49.51 per share

- FY2023: low $33.86 per share, central $47.31 per share, high $55.14 per share

- FY2024: low $38.62 per share, central $51.17 per share, high $58.92 per share

- FY2025: low $47.27 per share, central $65.74 per share, high $76.04 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:34:05.870Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1099800/000109980026000009/ew-20251231.htm); period 2025-12-31, filed 2026-02-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.