EW - Embedded Expectations Analysis - 2021 03 05
Edwards Lifesciences Corporation (EW:USA) trades above historical averages relative to UAFRS-based (Uniform) earnings, with a 46.9x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about sales declines, TAVR procedures growth, and the demand for their therapiesSpecifically, management may have concerns about sales declines, particularly in the TAVR and Surgical Structural Heart segment, and the American Heart Association's ability to develop optimal standards of care for Aortic Stenosis. In addition, they may lack confidence in their ability to sustain TAVR procedure growth, maintain PASCAL leaflet repair performance, and help patients with aortic insufficiency through surgery. Furthermore, they may be concerned about their progress with transcatheter mitral and tricuspid therapies (TMTT), the sustainability of demand for intense surgery products, and the pace of vaccine distribution and its impact on procedures. Lastly, management may be overstating the capabilities of their minimal invasive therapies, and they may be concerned about continued referral softness in large centers
Edwards Lifesciences is engaged in patient-focused medical for structural heart disease, as well as critical care and surgical monitoring. The company is a manufacturer of heart valve systems and repair products used to replace or repair a patient's diseased or defective heart valve. The company is also engaged in hemodynamic and noninvasive brain and tissue oxygenation monitoring systems used to measure a patient's cardiovascular function in the hospital setting. The company's products and technologies are categorized into four main areas: Transcatheter Aortic Valve Replacement, Transcatheter Mitral and Tricuspid Therapies, Surgical Structural Heart, and Critical Care.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.