Is the business good?
How good a business is EW?
Edwards Lifesciences earns 16% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
16%
Return on invested capital · cost of capital 9.0% · 7.4 points above what the capital costs: growth creates value
- Operating margin
- 22%
Operating margin · Medical Devices median 11% · 12 months to Q2 2026
- Cash conversion
- 1.43×
Cash conversion · 0.14× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −1.8%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 20% |
| FY2021 | 32% |
| FY2022 | 34% |
| FY2023 | 26% |
| FY2024 | 25% |
| FY2025 | 21% |
Details›
- Gross margin12 months to Q2 2026
- 78%
- Operating margin12 months to Q2 2026
- 22%
- Net margin12 months to Q2 2026
- 15%
- Free cash flow margin
- 22%
- R&D as % of revenue
- 17%
- Revenue, trailing twelve months
- $6.51B
- Free cash flow, trailing twelve months
- $1.43B
- Net income, trailing twelve months
- $1.00B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 16%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Medical Devices
Ranks #18 of 35 by Smart Score