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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on EW

Edwards Lifesciences' recent performance was positively driven by its Q3 earnings release, which provided insight into the company's business performance. The company's TMTT segment, a market leader in transcatheter heart valve technologies, continues to exhibit strong secular tailwinds and consistent revenue growth. A robust balance sheet and ongoing share buybacks also contributed positively. Despite margin pressures and stagnating EPS, the company's valuation appears supported by its growth prospects. The Q3 2025 earnings call transcript highlighted the company's continued focus on innovation and growth.

1.c. Company Highlights

2. Edwards Lifesciences' Q3 2025 Earnings: A Strong Showing with Growth Across Multiple Therapeutic Areas

Edwards Lifesciences reported a robust third-quarter 2025 financial performance, with sales growing 12.6% to $1.55 billion, driven by its comprehensive portfolio across multiple therapeutic areas. The company's adjusted EPS was $0.67, beating expectations, while GAAP EPS was $0.50. The gross profit margin was negatively impacted by 110 basis points due to foreign exchange rates. The company's strong balance sheet boasts approximately $3 billion in cash and cash equivalents, with $2 billion remaining under its current share repurchase authorization.

Publication Date: Nov -01

📋 Highlights
  • Q3 Sales Growth:: Rose 12.6% to $1.55 billion, with TAVR sales up 10.6% to $1.15 billion.
  • TMTT Surge:: Sales jumped 53% to $144 million, driven by PASCAL and EVOQUE performance.
  • Full-Year Guidance Raised:: Sales growth now at high end of 9-10% range; EPS guidance increased to $2.56-$2.62.
  • Profit Margins:: Adjusted gross margin projected at 78-79%; operating margin at 27-28% for 2025.
  • Balance Sheet Strength:: $3 billion cash and $2 billion share repurchase authorization remaining.

Segment Performance

The company's TAVR sales increased 10.6% to $1.15 billion, driven by growth in multiple regions supported by new evidence, guideline updates, and expanded education. TMTT sales surged 53% to $144 million, fueled by the strong performance of PASCAL and EVOQUE. The Surgical product group sales rose 5.6% to $258 million, driven by RESILIA therapy adoption. As CEO Bernard Zovighian expressed confidence in the company's long-term financial goals, stating that the Q3 performance is a reflection of asymptomatic approval, with the indication and evidence playing a part in the growth.

Guidance and Outlook

The company raised its full-year sales growth guidance to the high end of the 9% to 10% range and increased its EPS guidance range to $2.56 to $2.62. For the fourth quarter, the company projects total company sales of $1.51-1.59 billion and adjusted earnings per share of $0.58-$0.64. Analysts estimate next year's revenue growth at 9.8%, indicating a continued upward trajectory for the company.

Valuation Metrics

With a P/E Ratio of 35.33, P/B Ratio of 4.57, and P/S Ratio of 8.23, Edwards Lifesciences' valuation multiples indicate a premium pricing. The EV/EBITDA ratio of 27.59 suggests that the company's enterprise value is relatively high compared to its EBITDA. The ROIC of 10.12% and ROE of 13.57% indicate a strong return on investment and equity, respectively.

Operational Highlights

The company is pursuing regulatory approval for JenaValve and expects a smooth transition with the upcoming CFO change. Edwards Lifesciences had a strong showing at TCT, with positive real-world tricuspid data, and expects to have a toolbox for mitral next year. The company's efforts to improve efficiency in the cath lab include programs like Benchmark, partnerships with tech companies, and AI-based initiatives, aiming to improve patient outcomes, reduce costs, and increase capacity.

R&D and Innovation

The company views R&D as an investment in top-line growth, with a focus on innovation to drive sustainable organic top-line sales growth. R&D as a percentage of sales trended downward to 18.1% this quarter, indicating a relatively efficient use of resources. The goal is for top-line growth to outpace R&D spending growth, positioning the company for long-term success.

3. NewsRoom

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Edwards Lifesciences Reaffirms Strategy for Sustainable, Differentiated Growth at Annual Investor Conference

Dec -04

Source: businesswire.com

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Edwards Lifesciences Corporation $EW Shares Sold by Fisher Asset Management LLC

Dec -03

Source: defenseworld.net

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American Century Companies Inc. Sells 1,049,818 Shares of Edwards Lifesciences Corporation $EW

Dec -03

Source: defenseworld.net

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BLI Banque de Luxembourg Investments Makes New Investment in Edwards Lifesciences Corporation $EW

Dec -01

Source: defenseworld.net

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HALPER SADEH LLC ENCOURAGES LIVE NATION ENTERTAINMENT, INC. SHAREHOLDERS TO CONTACT THE FIRM TO DISCUSS THEIR RIGHTS

Nov -30

Source: prnewswire.com

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Berry Wealth Group LP Makes New Investment in Edwards Lifesciences Corporation $EW

Nov -29

Source: defenseworld.net

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2,079 Shares in Edwards Lifesciences Corporation $EW Bought by AlphaCore Capital LLC

Nov -26

Source: defenseworld.net

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BSX vs. EW: Which Heart Device Stock Is the Smarter Investment Now?

Nov -24

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.50%)

6. Segments

Medical Products

Expected Growth: 9.5%

The expected growth rate of 9.5% is based on the global revenue growth hypothesis. This growth is driven by increasing demand for medical products, driven by an aging population, and a rising prevalence of cardiovascular diseases. Additionally, advancements in medical technology and the company's continued investment in research and development are expected to drive growth in this segment.

7. Detailed Products

Transcatheter Heart Valves

Edwards Lifesciences offers a range of transcatheter heart valves, including the SAPIEN 3 and SAPIEN 3 Ultra valves, which are designed to treat aortic stenosis and other heart valve diseases.

Surgical Heart Valves

The company's surgical heart valves, such as the PERIMOUNT and INTUITY valves, are designed for open-heart surgery to replace diseased or damaged heart valves.

Critical Care

Edwards Lifesciences' critical care products, including the FloTrac and EV1000 systems, are designed to monitor and manage cardiovascular and hemodynamic parameters in critically ill patients.

Peripheral Vascular

The company's peripheral vascular products, such as the INCRAFT and LIFESTREAM stent grafts, are designed to treat peripheral artery disease and other vascular conditions.

8. Edwards Lifesciences Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Edwards Lifesciences Corporation faces moderate threat from substitutes, as there are limited alternatives to its medical devices and technologies. However, the company's focus on innovation and R&D helps it stay ahead of potential substitutes.

Bargaining Power Of Customers

The bargaining power of customers is low for Edwards Lifesciences Corporation, as the company's products are often critical to patient care and hospitals have limited negotiating power. Additionally, the company's strong relationships with healthcare providers help maintain customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for Edwards Lifesciences Corporation, as the company relies on a diverse range of suppliers for raw materials and components. However, the company's scale and global presence help mitigate supplier power.

Threat Of New Entrants

The threat of new entrants is low for Edwards Lifesciences Corporation, as the medical device industry is highly regulated and requires significant investment in R&D and clinical trials. Barriers to entry are high, and the company's established brand and reputation provide a competitive advantage.

Intensity Of Rivalry

The intensity of rivalry is high for Edwards Lifesciences Corporation, as the medical device industry is highly competitive and fragmented. The company faces intense competition from established players and new entrants, and must continually innovate and invest in R&D to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 9.46%
Debt Cost 4.24%
Equity Weight 90.54%
Equity Cost 9.57%
WACC 9.06%
Leverage 10.45%

11. Quality Control: Edwards Lifesciences Corporation passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
J&J

A-Score: 6.4/10

Value: 3.0

Growth: 4.0

Quality: 7.7

Yield: 6.0

Momentum: 8.0

Volatility: 10.0

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Abbott

A-Score: 6.2/10

Value: 2.7

Growth: 5.9

Quality: 7.8

Yield: 4.0

Momentum: 7.0

Volatility: 9.7

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Stryker

A-Score: 5.3/10

Value: 1.8

Growth: 6.4

Quality: 6.7

Yield: 2.0

Momentum: 5.0

Volatility: 10.0

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Stock-Card
Edwards Lifesciences

A-Score: 5.1/10

Value: 2.3

Growth: 5.2

Quality: 8.8

Yield: 0.0

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

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Boston Scientific

A-Score: 5.1/10

Value: 0.9

Growth: 6.6

Quality: 6.7

Yield: 0.0

Momentum: 6.5

Volatility: 9.7

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DexCom

A-Score: 4.1/10

Value: 1.0

Growth: 9.1

Quality: 6.4

Yield: 0.0

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

86.19$

Current Price

86.19$

Potential

-0.00%

Expected Cash-Flows