Edwards Lifesciences Corporation (EW) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Edwards Lifesciences Corporation

Updated on October 12, 2026 · accounts published on July 23, 2026

Reading of October 9, 2026: A profitable healthcare business with heavy research spending and a cash-rich balance sheet

Edwards Lifesciences trades at a P/E of 49.0 over the last 12 months, 68 % above its sector median of 29.2, and holds net cash on its balance sheet.

• Is Edwards Lifesciences expensive or cheap? Its P/E of 49.0 is 68 % above the sector median of 29.2, and it has traded lower 62 % of the time in the last decade.
• How is the business doing? Revenue grew 12 % over the last 12 months with a 28.1 % operating margin, above its 2014-2025 average of 27.6 %.
• How strong is the balance sheet? Debt is just 0.07 times equity, and net cash of $6.02 per share equals 7 % of the share price (fiscal 2025).
• Does it invest enough in R&D and turn profit into cash? R&D took 17.8 % of revenue in fiscal 2025, above the 15 % healthy mark, and free cash flow was 124 % of net income.
• What to expect from the next earnings? Analysts expect EPS of $0.74 on November 4, 2026; the company has beaten estimates in 7 of the last 8 quarters.

Is Edwards Lifesciences expensive or cheap?

Edwards Lifesciences trades at a P/E of 49.0 over the last 12 months. That is 68 % above the median of 29.2 for 218 healthcare companies. Against its own history the gap is smaller. The ten-year median P/E is 43.8, so today's multiple is 12 % higher, and the stock has traded cheaper 62 % of the time this decade, in a range of 25.1 to 98.0. Measured against its 10-year average of 47.9, the current P/E sits inside the neutral band. A free cash flow yield of 3.9 % shows the price already assumes growth.

How is the business doing?

Sales are growing at a healthy pace, up 12 % over the last 12 months, and profitability is holding. The operating margin of 28.1 % is slightly above both the 27.6 % average for fiscal 2014-2025 and the 27.0 % of fiscal 2025. The weak spot is EPS, down 74 % year on year. That drop does not match a stable operating margin, which suggests it comes from items below the operating line that these figures do not break out. ROIC of 10.2 % beats the sector median of 6.1 % by 4.1 points and has stayed above 10 % in each of the last ten fiscal years.

How strong is the balance sheet?

The balance sheet is one of the strongest parts of the story. Debt to equity is 0.07 over the last 12 months. At the end of fiscal 2025, cash of $7.23 per share far exceeded debt of $1.21, leaving net cash of $6.02, or 7.1 % of the current price. Net debt to EBITDA of −1.6× is far below the 2.5× ceiling considered healthy in healthcare. A current ratio of 4.52 and an Altman Z of 11.6, deep in the safe zone, rule out liquidity stress. The Piotroski score of 6 out of 9 is solid but leaves room to improve.

Does it invest enough in R&D and turn profit into cash?

In healthcare the research pipeline is the invisible asset. Patents that expire are revenue that disappears, so innovation and cash flow matter more than any single year's earnings. Edwards Lifesciences spent 17.8 % of revenue on R&D in fiscal 2025, above the 15 % considered healthy. Its gross margin of 78.1 % clears the 70 % bar for branded products. Free cash flow reached 124 % of net income in fiscal 2025 against a 90 % threshold, so profits are backed by cash. Two checks fail: EPS grew 6.8 % a year over fiscal 2020-2025, below the 8 % mark, and ROIC of 10.2 % is short of the 12 % benchmark.

What to expect from the next earnings?

Edwards Lifesciences reports on November 4, 2026, and analysts expect EPS of $0.74. Its track record is good: it has beaten EPS estimates in 7 of the last 8 quarters. On July 23, 2026 it posted $0.78 against $0.74 expected, a 5 % beat. The 2026 EPS consensus has stayed at $3.00 for 27 days and revenue estimates have barely moved, so expectations are steady going into the report. Of 49 analysts, 33 rate the stock a buy, 16 a hold and none a sell. With a P/E of 49.0, the results will need to justify that confidence.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.