Edwards Lifesciences Stock Fair Value Calculation – Wolfe Downgrades Edwards Lifesciences Amid Emerging Rivalry
December 5, 2023
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Edwards Lifesciences ($NYSE:EW) is a medical technology company that specializes in the treatment of structural heart disease and critically ill patients.
However, its stock has recently taken a hit after Wolfe Research downgraded the company due to increasing competition in the market. Wolfe Research’s downgrade was based on analysis of the long-term implications of developing rivals in the cardiovascular care market. Competition has been growing steadily, with several new players entering the fray. As a result, Edwards Lifesciences is having to face a growing number of competitors, which could potentially reduce its market share and impact its profits. The downgrade serves as a reminder of the importance of staying ahead of the competition and adapting to the ever-changing landscape. Overall, while Edwards Lifesciences is still a strong player in the market, Wolfe Research’s downgrade should serve as a warning sign for investors and a reminder of the importance of staying ahead of competition. The company must continue to innovate and adapt to changing conditions if it is to remain successful in the long term.
Stock Price
On Tuesday, Wolfe Research downgraded stock of Edwards Lifesciences from a “market-perform” to an “underperform” rating, citing growing competition in the market from rival companies. Edwards Lifesciences stock opened at $65.6 and closed at $67.1, down by a slight 0.1% from the prior closing price of $67.2. This stock has been on a trend of decline lately as investors have become increasingly concerned about emerging rivalry in this sector.
Despite its strong product portfolio and long-term presence in the industry, Edwards Lifesciences is now facing an uphill battle as more and more companies are entering the market and providing similar products and services. It remains to be seen if Edwards Lifesciences can weather the storm and maintain its foothold in this highly competitive environment. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Edwards Lifesciences. More…
| Total Revenues | Net Income | Net Margin |
| 5.82k | 1.43k | 27.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Edwards Lifesciences. More…
| Operations | Investing | Financing |
| 1.04k | 254.4 | -1.14k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Edwards Lifesciences. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 9.37k | 2.64k | 10.98 |
Key Ratios Snapshot
Some of the financial key ratios for Edwards Lifesciences are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.0% | 10.3% | 30.0% |
| FCF Margin | ROE | ROA |
| 13.5% | 16.7% | 11.6% |
Analysis – Edwards Lifesciences Stock Fair Value Calculation
At GoodWhale, we have conducted a thorough analysis of EDWARDS LIFESCIENCES‘s fundamentals and have determined that the fair value of EDWARDS LIFESCIENCES’s share is approximately $105.1. This value was determined using our proprietary Valuation Line. Currently, EDWARDS LIFESCIENCES stock is trading at $67.1, which is significantly lower than our calculated fair value. This indicates that as of now, the stock is undervalued by 36.2%. More…
Peers
Edwards Lifesciences Corp is a global leader in the development of products and technologies to treat cardiovascular disease. The company’s products are used by healthcare professionals to treat patients suffering from cardiac and vascular diseases. Edwards Lifesciences Corp’s competitors include Implanet SA, Avra Medical Robotics Inc, and Paragon 28 Inc.
– Implanet SA ($OTCPK:IMPZY)
Implanet SA is an orthopedic company that manufactures and distributes medical devices. The company has a market cap of 3.76M as of 2022 and a Return on Equity of -114.56%. The company’s products are used in the treatment of conditions such as osteoarthritis, degenerative disc disease, and deformities of the spine and extremities.
– Avra Medical Robotics Inc ($OTCPK:AVMR)
Avra Medical Robotics Inc is a publicly traded company with a market capitalization of 239.1 thousand dollars as of 2022. The company focuses on the development and commercialization of robotic technologies for use in minimally invasive surgery. The company’s primary product is the Avra Surgical System, a surgical robotics platform that assists surgeons in performing tasks such as suturing, tissue manipulation, and vessel sealing. The company has received FDA clearance for the Avra Surgical System and has CE Mark approval for the European Union.
– Paragon 28 Inc ($NYSE:FNA)
Paragon 28 Inc is a publicly traded company with a market capitalization of 1.33 billion as of 2022. The company has a negative return on equity of 9.25%. Paragon 28 Inc is engaged in the business of providing turnkey engineering, procurement and construction services to the oil and gas industry.
Summary
Edwards Lifesciences, a global leader in medical technology for structural heart disease and critical care monitoring, has seen a decline in its stock price after Wolfe Research downgraded the company based on growing competition. Analysts have noted that the market for Edwards’ products is becoming more competitive due to increased product offerings from rival companies. They anticipate that the competitive environment will continue to pressure Edwards’ prices and margins.
Despite the recent downgrade, investors note that Edwards’ products are well-positioned to benefit from the growth of the structural heart market. Overall, analysts agree that Edwards has a strong product portfolio and market presence, and is well-positioned to capitalize on future growth opportunities.
