NasdaqGS:CFMS

Stock Analysis Report

Executive Summary

Conformis, Inc., a medical technology company, develops, manufactures, and sells joint replacement implants.

Rewards

Earnings have grown 6.5% per year over the past 5 years

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

Does not have a meaningful market cap ($67M)



Snowflake Analysis

Adequate balance sheet and overvalued.


Similar Companies

Zimmer Biomet Holdings

NYSE:ZBH

Share Price & News

How has Conformis's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CFMS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.0%

CFMS

2.2%

US Medical Equipment

1.5%

US Market


1 Year Return

-22.3%

CFMS

22.1%

US Medical Equipment

20.1%

US Market

Return vs Industry: CFMS underperformed the US Medical Equipment industry which returned 22.1% over the past year.

Return vs Market: CFMS underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

CFMSIndustryMarket
7 Day-5.0%2.2%1.5%
30 Day-23.0%1.0%1.4%
90 Day-45.6%8.7%8.7%
1 Year-22.3%-22.3%23.0%22.1%22.7%20.1%
3 Year-83.4%-83.4%84.6%79.4%50.1%40.5%
5 Yearn/a117.1%94.4%73.1%54.1%

Price Volatility Vs. Market

How volatile is Conformis's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Conformis undervalued compared to its fair value and its price relative to the market?

3.36x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CFMS's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CFMS's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: CFMS is unprofitable, so we can't compare its PE Ratio to the Medical Equipment industry average.

PE vs Market: CFMS is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CFMS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CFMS is good value based on its PB Ratio (3.4x) compared to the US Medical Equipment industry average (4x).


Next Steps

Future Growth

How is Conformis forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

20.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CFMS is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CFMS is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CFMS is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CFMS's revenue (6.6% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: CFMS's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CFMS is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Conformis performed over the past 5 years?

6.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CFMS is currently unprofitable.

Growing Profit Margin: CFMS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CFMS is unprofitable, but has reduced losses over the past 5 years at a rate of 6.5% per year.

Accelerating Growth: Unable to compare CFMS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CFMS is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (7.1%).


Return on Equity

High ROE: CFMS has a negative Return on Equity (-165.4%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Conformis's financial position?


Financial Position Analysis

Short Term Liabilities: CFMS's short term assets ($53.1M) exceed its short term liabilities ($17.1M).

Long Term Liabilities: CFMS's short term assets ($53.1M) exceed its long term liabilities ($36.3M).


Debt to Equity History and Analysis

Debt Level: CFMS's debt to equity ratio (97.7%) is considered high.

Reducing Debt: CFMS's debt to equity ratio has increased from 16% to 97.7% over the past 5 years.


Balance Sheet

Inventory Level: CFMS has a high level of physical assets or inventory.

Debt Coverage by Assets: CFMS's debt is covered by short term assets (assets are 2.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CFMS has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: CFMS has sufficient cash runway for 1.6 years if free cash flow continues to grow at historical rates of 14.9% each year.


Next Steps

Dividend

What is Conformis's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CFMS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CFMS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CFMS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CFMS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CFMS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Mark Augusti (53yo)

3.3yrs

Tenure

US$1,231,541

Compensation

Mr. Mark A. Augusti has been Chief Executive Officer and President at ConforMIS, Inc. since November 14, 2016. Mr. Augusti's 27-year business career has been marked with executive management responsibility ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD1.23M) is above average for companies of similar size in the US market ($USD521.92K).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mark Augusti
CEO, President & Director3.3yrsUS$1.23m2.66% $1.8m
Bob Howe
CFO & Treasurer0yrsno datano data
Gary Maingot
Senior VP of Operations0yrsno datano data
Erin Henry
Interim Principal Accounting Officer & Corporate Controller0.3yrsno data0.098% $66.0k
J. Alldredge
Chief Legal Officer & Corporate Secretary0.6yrsno data0.045% $30.6k
John Slamin
Senior Vice President of Product Engineering12.3yrsno datano data
Emmanuel Nyakako
Senior Vice President of Quality & Regulatory Affairs2.9yrsno datano data
Eric Rickenbach
Senior Vice President of US Sales0yrsno datano data
Daniel Steines
Consultant1.3yrsUS$888.98k0.35% $234.6k

2.1yrs

Average Tenure

51.5yo

Average Age

Experienced Management: CFMS's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Augusti
CEO, President & Director3.3yrsUS$1.23m2.66% $1.8m
Kenneth Fallon
Chairman of the Board5yrsUS$178.45k0.18% $120.8k
Bradley Langdale
Independent Director11.8yrsUS$144.45k0.14% $92.9k
Brian McKeon
Member of the Scientific Advisory Board11yrsno datano data
Thomas Thornhill
Member of Scientific Advisory Board0yrsno datano data
Thomas Minas
Member of Scientific Advisory Board0yrsno datano data
Wolfgang Fitz
Member of Scientific Advisory Board0yrsno datano data
Richard Scott
Member of Scientific Advisory Board11.2yrsno datano data
Amar Ranawat
Member of the Scientific Advisory Board11yrsno datano data
Anil Ranawat
Member of the Scientific Advisory Board11yrsno datano data

11.0yrs

Average Tenure

55yo

Average Age

Experienced Board: CFMS's board of directors are seasoned and experienced ( 11 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CFMS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.3%.


Top Shareholders

Company Information

Conformis, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Conformis, Inc.
  • Ticker: CFMS
  • Exchange: NasdaqGS
  • Founded: 2004
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$67.228m
  • Shares outstanding: 68.71m
  • Website: https://www.conformis.com

Number of Employees


Location

  • Conformis, Inc.
  • 600 Technology Park Drive
  • Billerica
  • Massachusetts
  • 1821
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CFMSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2015
308DB (Deutsche Boerse AG)YesCommon StockDEEURJul 2015

Biography

Conformis, Inc., a medical technology company, develops, manufactures, and sells joint replacement implants. The company offers customized knee replacement products, including iTotal CR, a cruciate-retaining product; iTotal PS, a posterior cruciate ligament substituting product; iDuo, a customized bicompartmental knee replacement system; and iUni, a customized unicompartmental knee replacement product to treat the medial or lateral compartment of the knee. It also provides Conformis Hip System, a hip replacement product; and iJigs, a customized single-use patient-specific instrumentation. The company markets and sells its products to hospitals and other medical facilities through sales force, independent sales representatives, and distributors in the United States, Germany, the United Kingdom, Austria, Ireland, Switzerland, Singapore, Hong Kong, Malaysia, Monaco, Hungary, Spain, and Australia Conformis, Inc. was founded in 2004 and is headquartered in Billerica, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 01:21
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.