NYSE · Healthcare

Edwards Lifesciences Corporation

EW · Medical Devices

$87.36

▲ 0.68 (0.78%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

A⤢

Gross Profit Margin 78.0%

Operating Margin 31.2%

Net Income Margin 23.1%

Fin. Health

A⤢

Years to Pay Off Debt 1.8 yrs

Working Capital vs Long-Term Debt $4.2B

Working Capital $4.8B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 4.87x

Cash Flow

C⤢

Free Cash Flow -$21M

CapEx % of Net Income 17.0%

Owner Earnings $486M

Profitability

Gross Profit Margin 78.0%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 31.2%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 23.1%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 1.8 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt $4.2B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $4.8B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow -$21M

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 17.0%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $486M

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Edwards Lifesciences Corporation

Edwards Lifesciences Corporation provides products and technologies to treat advanced cardiovascular diseases in the United States, Europe, Japan, and internationally. It offers transcatheter heart valve replacement products for minimally invasive replacement of aortic heart valves under the Edwards SAPIEN family of valves system; and transcatheter heart valve repair and replacement products to treat mitral and tricuspid valve diseases under the PASCAL and EVOQUE brands. The company also provides surgical structural heart solutions, such as aortic surgical valve under the INSPIRIS brand name; INSPIRIS RESILIA aortic valve, which offers RESILIA tissue and VFit technology; KONECT RESILIA, a pre-assembled tissue valve conduit for complex combined procedures; and MITRIS RESILIA valve. It distributes its products through a direct sales force and independent distributors. Edwards Lifesciences Corporation was founded in 1958 and is headquartered in Irvine, California.

Market Data

Market Cap $50.3B

Enterprise Value $48.0B

P/E (TTM) 47.22

Dividend Yield N/A

Exchange NYSE

Key Margins

Gross Profit 78.0%

Operating Margin 31.2%

Net Margin 23.1%

Company Info

Sector Healthcare

Industry Medical Devices

Employees 16000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Edwards Lifesciences Corporation at $87.36.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $87.36, the stock trades at a 435% premium to its Graham Number of $16.32. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Trading at 15.5x NCAV. Expected for most quality businesses — NCAV was designed to find depression-era bargains and rarely applies to modern profitable companies..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	78.0%▼	78.1%•	N/A
Operating Margin %	31.2%▲	23.6%•	N/A
Net Income %	23.1%▲	5.8%•	N/A
Diluted EPS	0.66▲	0.16•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$13.3B	$13.7B	N/A
Total Debt	$703M▼	$705M•	N/A
Working Capital	$4.8B▼	$4.9B•	N/A
Years to Pay Debt	1.85	7.73	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	-$21M▼	$354M•	N/A
Owner Earnings	$486M	$231M	N/A
CapEx % of Net Income	17.0%	106.8%	N/A

Income Statement

	2026	2025	2024
Tax Effect Of Unusual Items	-27,414	-91,294
Tax Rate For Calcs	0	0
Normalized EBITDA	716,300	385,100
Total Unusual Items	-160,700	-315,000
Total Unusual Items Excluding Goodwill	-160,700	-315,000
Net Income From Continuing Operation Net Minority Interest	380,700	64,200
Reconciled Depreciation	40,900	42,700
Reconciled Cost Of Revenue	362,600	343,000
EBITDA	555,600	70,100
EBIT	514,700	27,400
Net Interest Income	33,500	35,900
Interest Income		56,300	64,000
Normalized Income	513,986	287,906
Net Income From Continuing And Discontinued Operation	380,700	91,200
Total Expenses	1,133,900	1,199,300
Total Operating Income As Reported	477,600	151,100
Diluted Average Shares	580,700	581,800
Basic Average Shares	579,200	580,400
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	380,700	91,200
Net Income Common Stockholders	380,700	91,200
Net Income	380,700	91,200
Minority Interests	0	0
Net Income Including Noncontrolling Interests	380,700	91,200
Net Income Discontinuous Operations	0	27,000
Net Income Continuous Operations	380,700	64,200
Tax Provision	78,300	26,200
Pretax Income	459,000
Other Income Expense	-89,200	-315,800
Other Non Operating Income Expenses	71,500	-800
Special Income Charges	-160,700	-319,000
Other Special Charges	37,100	208,600
Write Off	123,600	99,800
Impairment Of Capital Assets		0
Restructuring And Mergern Acquisition	0	10,600
Net Non Operating Interest Income Expense	33,500	35,900
Total Other Finance Cost	-33,500
Interest Income Non Operating		56,300	64,000
Operating Income	514,700	370,300
Operating Expense	771,300	856,300
Other Operating Expenses	-14,200	-14,300
Research And Development	263,300	267,700
Selling General And Administration	522,200	602,900
Gross Profit	1,286,000	1,226,600
Cost Of Revenue	362,600	343,000
Total Revenue	1,648,600	1,569,600
Operating Revenue	1,648,600	1,569,600

Balance Sheet

	2026	2025	2024
Treasury Shares Number	83,000	78,000
Ordinary Shares Number	577,000	580,700
Share Issued	660,000	658,700
Total Debt	702,900	705,400
Tangible Book Value	7,280,000	7,440,800
Invested Capital	10,926,000	10,935,900
Working Capital	4,819,700	4,925,200
Net Tangible Assets	7,280,000	7,440,800
Capital Lease Obligations	104,400	107,100
Common Stock Equity	10,327,500	10,337,600
Total Capitalization	10,926,000	10,935,900
Total Equity Gross Minority Interest	10,327,500	10,337,600
Minority Interest		0	64,500
Stockholders Equity	10,327,500	10,337,600
Gains Losses Not Affecting Retained Earnings	-221,300	-238,300
Other Equity Adjustments	-221,300	-238,300
Treasury Stock	7,513,900	7,091,700
Retained Earnings	14,621,200	14,240,500
Additional Paid In Capital	2,781,500	2,768,400
Capital Stock	660,000	658,700
Common Stock	660,000	658,700
Total Liabilities Net Minority Interest	2,993,700	3,359,600
Total Non Current Liabilities Net Minority Interest	1,584,700	1,545,900
Other Non Current Liabilities	906,100	865,000
Liabilities Heldfor Sale Non Current			0
Non Current Accrued Expenses		0	52,700
Tradeand Other Payables Non Current			1,300
Long Term Debt And Capital Lease Obligation	678,600	680,900
Long Term Capital Lease Obligation	80,100	82,600
Long Term Debt	598,500	598,300
Current Liabilities	1,409,000	1,813,700
Other Current Liabilities	7,600	25,300
Current Deferred Liabilities	22,800	27,200
Current Deferred Revenue	22,800	27,200
Current Debt And Capital Lease Obligation	24,300	24,500
Current Capital Lease Obligation	24,300	24,500
Pensionand Other Post Retirement Benefit Plans Current	265,400	467,500
Current Provisions	7,500	50,000
Payables And Accrued Expenses	1,081,400	1,219,200
Current Accrued Expenses	606,000	714,300
Payables	475,400	504,900
Total Tax Payable	294,300	277,400
Accounts Payable	181,100	227,500
Total Assets	13,321,200	13,697,200
Total Non Current Assets	7,092,500	6,958,300
Other Non Current Assets	96,100	142,600
Non Current Prepaid Assets	91,300	93,300
Non Current Deferred Assets	1,098,100	1,138,100
Non Current Deferred Taxes Assets	1,098,100	1,138,100
Non Current Note Receivables	137,200	173,700
Non Current Accounts Receivable	400,100	314,800
Financial Assets	14,200	5,800
Investments And Advances	285,600	278,600
Investmentin Financial Assets		243,900
Available For Sale Securities		243,900
Long Term Equity Investment		34,700
Goodwill And Other Intangible Assets	3,047,500	2,896,800
Other Intangible Assets	1,227,900	1,128,200
Goodwill	1,819,600	1,768,600
Net PPE	1,922,400	1,914,600
Accumulated Depreciation		-849,800	-794,500
Gross PPE	1,922,400	2,764,400
Construction In Progress		301,200	244,000
Other Properties	1,922,400	102,700
Machinery Furniture Equipment		814,800	772,800
Buildings And Improvements		1,393,300	1,339,800
Land And Improvements		152,400	123,900
Current Assets	6,228,700	6,738,900
Other Current Assets	329,500	339,300
Assets Held For Sale Current		0	26,800
Prepaid Assets	135,700	135,000
Inventory	1,119,000	1,126,200
Finished Goods	674,400	676,700
Work In Process	242,200	252,900
Raw Materials	202,400	196,600
Receivables	973,000	912,100
Other Receivables	197,300	252,500
Accounts Receivable	775,700	659,600
Allowance For Doubtful Accounts Receivable	-15,600	-15,000
Gross Accounts Receivable	791,300	674,600
Cash Cash Equivalents And Short Term Investments	3,671,500	4,226,300
Other Short Term Investments	1,226,000	1,288,300
Cash And Cash Equivalents	2,445,500	2,938,000

Cash Flow

	2026	2025	2024
Free Cash Flow	-21,100	353,500
Repurchase Of Capital Stock	-421,800	-40,600
Capital Expenditure	-64,900	-97,400
Income Tax Paid Supplemental Data	27,900		562,300
End Cash Position	2,447,500	2,939,500
Beginning Cash Position	2,939,500	2,694,800
Effect Of Exchange Rate Changes	8,200	3,500
Changes In Cash	-500,200	241,200
Financing Cash Flow	-451,200	-11,400
Cash Flow From Continuing Financing Activities	-451,200	-11,400
Net Other Financing Charges	-98,300	-3,100
Proceeds From Stock Option Exercised	68,900	32,300
Net Common Stock Issuance	-421,800	-40,600
Common Stock Payments	-421,800	-40,600
Investing Cash Flow	-92,800	-198,300
Cash Flow From Continuing Investing Activities	-92,800	-198,300
Net Other Investing Changes	-55,500	31,800
Net Investment Purchase And Sale	69,000	-117,700
Sale Of Investment	722,600	714,500
Purchase Of Investment	-653,600	-832,200
Net Business Purchase And Sale	-41,400	-15,000
Purchase Of Business	-41,400	-15,000
Net Intangibles Purchase And Sale		0	-4,600
Purchase Of Intangibles		0	-4,600
Capital Expenditure Reported	-64,900	-97,400
Operating Cash Flow	43,800	450,900
Cash Flow From Continuing Operating Activities	43,800	450,900
Change In Working Capital	-501,500	254,300
Change In Other Working Capital	23,800	54,900
Change In Payables And Accrued Expense	-397,100	153,900
Change In Accrued Expense	-50,000	-14,800
Change In Payable	-347,100	168,700
Change In Account Payable	-347,100	168,700
Change In Prepaid Assets	-8,700	2,100
Change In Inventory	-1,600	11,000
Change In Receivables	-117,900	32,400
Other Non Cash Items	-58,200	-21,900
Stock Based Compensation	45,400	39,200
Asset Impairment Charge	123,600	99,800
Deferred Tax	9,400	-54,400
Deferred Income Tax	9,400	-54,400
Depreciation Amortization Depletion	40,900	42,700
Depreciation And Amortization	40,900	42,700
Operating Gains Losses	3,500		3,332,200
Gain Loss On Investment Securities
Net Income From Continuing Operations	380,700	91,200

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $1.4B ▲ $1.6B +16.7%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 78.7% ▲ 78.0% -0.6pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 36.4% ▲ 31.2% -5.2pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 25.3% ▲ 23.1% -2.2pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$1.6B/qtr (≈$6.6B ann.)

vs > $1.5B annualised revenue

✅ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

4.42x current ratio

vs ≥ 2.0x

❌ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

-$21M

vs Positive

Operating Cash Flow

$44M

Latest quarter · Buffett's cash reality check

ROIC

3.4%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

4.9x

Net Assets: $10.3B

⚠️ Revenue grew vs prior year but operating margin contracted. Possible explanations: deliberate investment in growth (hiring, marketing, R&D), input cost inflation, or pricing pressure from competition. Buffett distinguishes between spending that builds moat vs. spending that doesn't.

Peers & Industry Comparison

Medical Devices — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
EW	$87.36	$50.3B	47.22	78.0%	23.1%	$1.6B
MDT Medtronic plc.	$79.34	$101.9B	21.0	65.4%	13.2%	$36.4B
ABT Abbott Laboratories	$88.41	$154.0B	24.8	56.5%	13.9%	$45.1B
SYK Stryker Corporation	$307.80	$118.0B	35.7	64.7%	13.2%	$25.3B
BSX Boston Scientific Corporation	$45.29	$67.3B	18.9	68.9%	17.3%	$20.6B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.18%

Low — management has little skin in the game

Return on Equity (ROE)

3.7%

Weak — poor returns on equity

Return on Assets (ROA)

2.9%

Fair — average asset utilization

Share Buybacks (Latest Year)

$893M

Management is returning capital to shareholders via buybacks

Debt Trend YoY

-0.4% YoY

Debt is declining — management is deleveraging

Leadership Team

Bernard Zovighian

CEO & Director

Age 57

Pay: $3,788,122

0.995% of net income

Donald Bobo Jr.

Corporate Vice President of Strategy & Corporate Development

Age 63

Pay: $1,595,262

0.419% of net income

Daveen Chopra

Corporate Vice President of Transcatheter Mitral & Tricuspid Therapies

Age 46

Pay: $1,555,892

0.409% of net income

Annette Maria Bruls

Corporate Vice President of EMEA, Canada, & Latin America

Age 54

Pay: $1,627,873

0.428% of net income

Theodora Mistras

Corporate VP & CFO

Age 43

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	9.13%	52,590,933
Vanguard Capital Management LLC	6.55%	37,727,792
Vanguard Portfolio Management LLC	4.59%	26,407,018
State Street Corporation	4.57%	26,296,399
Wellington Management Group, LLP	3.82%	22,011,101
JPMORGAN CHASE & CO	3.78%	21,744,712
Bank Of New York Mellon Corporation	2.91%	16,737,548
FMR, LLC	2.52%	14,503,770

Risk Analysis

Beta (Market Risk)

0.87

Low volatility — more stable than the market

Short Interest

2.4% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.07x

Conservative balance sheet — low financial risk

Current Ratio

4.42x

Strong liquidity — Graham approved

52-Week Price Range

Low: $72.30 Current: $87.36 High: $89.60

Currently at 87% of 52-week range

Edwards Lifesciences Corporation

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry Comparison

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis