Edwards Lifesciences Corporation (EW)

FairStock Score: 47/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a business with a durable competitive advantage, a strong balance sheet, and a price that gives me room for error. Edwards Lifesciences has a real franchise in transcatheter heart valves—SAPIEN, PASCAL, EVOQUE—and revenue is moving in the right direction. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.7B versus $1.5B in fiscal Q2 2025, the quarter ended 2025-06-30. But profit is the problem. In that same 2026 quarter, net income was $241.9M and diluted EPS was $0.42, down from $333.2M and $0.56 a year earlier. For FY2025, ended 2025-12-31, revenue was $6.1B, net income $1.1B, and diluted EPS $1.83, while FY2024 showed $5.4B revenue, $4.2B net income, and $6.97 EPS. That is not a healthy earnings trend. The balance sheet is a genuine strength: debt-to-equity is only 0.07 and the Altman Z-Score is 11.59 (FairStock calculation). FairStock's return metrics show ROE of 9.18% and ROCE of 8.37%—fair, not exceptional. Yet at the 2026-10-13 close of $85.27, the FairStock P/E is 50.76, P/B is 4.63, EV/EBITDA is 28.42, and FCF yield is 2.9%. The Graham Number is $26.38, giving a negative margin of safety of -223.24%. FairStock classifies it as a slow grower whose profits have shrunk -8.1% a year over four years. I would want far more earning power before paying that price.

In plain English: The company sells heart valve replacements and other devices used to treat heart disease. Sales are growing, but profits have fallen, and the stock price looks expensive compared with its earnings and net assets. The numbers show a financially solid company with a high price tag and a recent profit problem.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer