NasdaqGS:CFMS

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet with questionable track record.


Similar Companies

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

-10.9%

CFMS

1.3%

US Medical Equipment

0.2%

US Market


1 Year Return

247.6%

CFMS

18.4%

US Medical Equipment

12.2%

US Market

Return vs Industry: CFMS exceeded the US Medical Equipment industry which returned 18.4% over the past year.

Return vs Market: CFMS exceeded the US Market which returned 12.2% over the past year.


Shareholder returns

CFMSIndustryMarket
7 Day-10.9%1.3%0.2%
30 Day-15.2%2.4%3.5%
90 Day-4.3%1.6%6.3%
1 Year247.6%247.6%19.4%18.4%14.7%12.2%
3 Year-80.8%-80.8%81.5%76.0%47.8%38.3%
5 Yearn/a116.4%92.9%62.1%44.1%

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?

6.15x

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 overvalued based on its PB Ratio (6.2x) compared to the US Medical Equipment industry average (3.9x).


Next Steps

Future Growth

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

22.0%

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 (6.3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CFMS's revenue (6.3% 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 has high quality earnings.

Growing Profit Margin: CFMS's current net profit margins (-41.4%) are higher than last year (-51.3%).


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 (28.3%).


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) exceeds its short term liabilities ($17.1M)

Long Term Liabilities: CFMS's short term assets (53.1M) exceeds 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 1.879462 years if free cash flow continues to grow at historical rates of 41.7% 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%3.6%industryaverage1.2%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

What is the CEO of Conformis's salary, the management and board of directors tenure and is there insider trading?

1.1yrs

Average management tenure


CEO

Mark Augusti (53yo)

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 ($USD1.23M) is above average for companies of similar size in the US market ($USD510.82K).

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


Management Age and Tenure

1.1yrs

Average Tenure

54yo

Average Age

Experienced Management: CFMS's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Age and Tenure

10.8yrs

Average Tenure

55yo

Average Age

Experienced Board: CFMS's board of directors are seasoned and experienced ( 10.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$1,74816 Oct 19
Paul Weiner
EntityIndividual
Role
Senior Key Executive
Consultant
Shares817
Max PriceUS$2.14
SellUS$4,11709 Aug 19
Paul Weiner
EntityIndividual
Role
Senior Key Executive
Consultant
Shares2,480
Max PriceUS$1.66
SellUS$12,43209 Aug 19
Mark Augusti
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares7,489
Max PriceUS$1.66
SellUS$1,842,99522 Jul 19
Archon Capital Management LLC
EntityCompany
Shares613,594
Max PriceUS$3.21
SellUS$2,659,16411 Jul 19
Archon Capital Management LLC
EntityCompany
Shares702,295
Max PriceUS$3.83
SellUS$44,67103 Jul 19
Paul Weiner
EntityIndividual
Role
Senior Key Executive
Consultant
Shares10,764
Max PriceUS$4.15
SellUS$99,01903 Jul 19
Mark Augusti
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares23,860
Max PriceUS$4.15
SellUS$11,66017 May 19
Paul Weiner
EntityIndividual
Role
Senior Key Executive
Consultant
Shares3,303
Max PriceUS$3.53
SellUS$24,02917 May 19
Mark Augusti
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares6,807
Max PriceUS$3.53
SellUS$34,32608 May 19
Paul Weiner
EntityIndividual
Role
Senior Key Executive
Consultant
Shares12,612
Max PriceUS$2.72
SellUS$15,76908 May 19
Patricia Davis
EntityIndividual
Shares5,794
Max PriceUS$2.72
SellUS$69,33608 May 19
Mark Augusti
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares25,477
Max PriceUS$2.72
SellUS$7,89507 Mar 19
Patricia Davis
EntityIndividual
Shares6,266
Max PriceUS$1.26
SellUS$1,69807 Feb 19
Paul Weiner
EntityIndividual
Role
Senior Key Executive
Consultant
Shares2,294
Max PriceUS$0.74
BuyUS$229,60004 Jan 19
Archon Capital Management LLC
EntityCompany
Shares560,000
Max PriceUS$0.41
SellUS$1,85407 Dec 18
Mark Augusti
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares2,706
Max PriceUS$0.69

Ownership Breakdown

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


Management Team

  • Fred Driscoll (68yo)

    Interim Chief Financial Officer

    • Tenure: 0.08yrs
  • Paul Weiner (55yo)

    Consultant

    • Tenure: 0.08yrs
    • Compensation: US$649.03k
  • Mark Augusti (53yo)

    CEO, President & Director

    • Tenure: 3yrs
    • Compensation: US$1.23m
  • Ed Kilgallen

    Vice President of Operations

    • Tenure: 2.3yrs
  • Daniel Steines (50yo)

    Consultant

    • Tenure: 1.1yrs
    • Compensation: US$888.98k
  • John Slamin (65yo)

    Senior Vice President of Product Engineering

    • Tenure: 12.1yrs
  • Manny Nyakako

    Senior Vice President of Quality & Regulatory Affairs

    • Tenure: 2.7yrs
  • J. Alldredge

    Chief Legal Officer & Corporate Secretary

    • Tenure: 0.3yrs
  • Erin Henry (35yo)

    Interim Principal Accounting Officer & Corporate Controller

    • Tenure: 0.08yrs
  • Eric Rickenbach

    Senior Vice President of US Sales

    • Tenure: 0yrs

Board Members

  • Ken Fallon (80yo)

    Chairman of the Board

    • Tenure: 4.8yrs
    • Compensation: US$178.45k
  • Brad Langdale (55yo)

    Independent Director

    • Tenure: 11.5yrs
    • Compensation: US$144.45k
  • Mark Augusti (53yo)

    CEO, President & Director

    • Tenure: 3yrs
    • Compensation: US$1.23m
  • Brian McKeon

    Member of the Scientific Advisory Board

    • Tenure: 10.8yrs
  • Thomas Thornhill

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Thomas Minas

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Wolfgang Fitz

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Richard Scott

    Member of Scientific Advisory Board

    • Tenure: 10.9yrs
  • Amar Ranawat

    Member of the Scientific Advisory Board

    • Tenure: 10.8yrs
  • Anil Ranawat

    Member of the Scientific Advisory Board

    • Tenure: 10.8yrs

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$122.994m
  • 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-retaini ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/15 00:50
End of Day Share Price2019/11/14 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.