Buffett Brain · Research note
Score updated 22 Oct 2026
EW· Healthcare
Edwards Lifesciences
Edwards Lifesciences' top-quintile margins and ROIC suggest a strong moat, but high valuation and declining EPS raise concerns.
Buffett fit
Partial fit
Owner
84
Durability
44
Management
71
Price
4
Score updated 22 Oct 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Healthcare stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned Edwards Lifesciences outright, we would focus on maintaining its strong of 78% and leveraging its top-quintile of 22.9% to reinvest in R&D.
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The durability of Edwards Lifesciences hinges on its ability to innovate and maintain regulatory compliance in the healthcare sector.
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Edwards Lifesciences has effectively reduced share count with a CAGR of -1.58% and a yield of 2.2% over the last five years, indicating shareholder-friendly .
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With an earnings yield of 2.31% and yield of 2.84%, the current valuation is steep, reflected in a of 43.2.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
7- 1 of 22.9% is top-quintile in healthcare, indicating strong capital efficiency.
- 2 of 78.0% surpasses the sector top-quintile cutoff, showcasing .
- 3 of 27.6% is significantly above the sector's top-quintile threshold.
- 4Net debt/EBITDA of -1.21 reflects a strong net cash position.
Concerns
7- 1 of 43.2 implies high growth expectations not currently supported by EPS trends.
- 2EPS CAGR of -6.52% over five years highlights declining profitability.
- 3Maximum EPS decline of 73.64% raises questions about earnings stability.
- 4Market cap vs retained earnings of -1.10 suggests poor reinvestment outcomes.
Price history
$90.09-24.8%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Edwards Lifesciences Corporation provides heart valve replacement and repair products, along with critical care monitoring systems. The company operates globally, with a focus on minimally invasive therapies. With a of 78.0% and of 27.6%, its unit economics are strong, reflecting and operational efficiency.
How this analysis has moved
The call has held across 2 reviews.
Oct 18, 2026 → Oct 22, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
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