CONMED (NYSE:CNMD) - Share price, News & Analysis

CNMD fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	5/6
Financial Health	2/6
Dividends	0/6

CNMD Stock Overview

CONMED Corporation, a medical technology company, develops, manufactures, and sells surgical devices and related equipment for surgical procedures worldwide.

Rewards

Trading at 29.7% below our estimate of its fair value

Earnings are forecast to grow 29.89% per year

Earnings grew by 403% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Significant insider selling over the past 3 months

CONMED Competitors

Price History & Performance

Summary of all time highs, changes and price drops for CONMED
Historical stock prices
Current Share Price	US$94.07
52 Week High	US$159.11
52 Week Low	US$87.24
Beta	1.53
1 Month Change	-18.63%
3 Month Change	-34.98%
1 Year Change	-33.28%
3 Year Change	9.93%
5 Year Change	84.67%
Change since IPO	6,955.25%

Recent News & Updates

Jun 23

We Think CONMED (NYSE:CNMD) Can Stay On Top Of Its Debt

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Jun 10

Here's Why I Think CONMED (NYSE:CNMD) Might Deserve Your Attention Today

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Shareholder Returns

	CNMD	US Medical Equipment	US Market
7D	5.8%	7.0%	6.6%
1Y	-33.3%	-23.6%	-18.4%

Return vs Industry: CNMD underperformed the US Medical Equipment industry which returned -23.7% over the past year.

Return vs Market: CNMD underperformed the US Market which returned -18.5% over the past year.

Price Volatility

Is CNMD's price volatile compared to industry and market?
CNMD volatility
CNMD Average Weekly Movement	6.9%
Medical Equipment Industry Average Movement	10.4%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.2%

Stable Share Price: CNMD is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: CNMD's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1970	3,800	Curt Hartman	https://www.conmed.com

CONMED Corporation, a medical technology company, develops, manufactures, and sells surgical devices and related equipment for surgical procedures worldwide. It offers orthopedic surgery products, including TruShot with Y-Knot All-In-One Soft Tissue Fixation System, Y-knot All-Suture Anchors, and PopLok Knotless Suture Anchors, which provide unique clinical solutions to orthopedic surgeons for the repair of soft tissue injuries, as well as supporting products that enable surgeons to perform minimally invasive sports medicine surgeries. The company markets orthopedic surgery products under the Hall, CONMED Linvatec, Concept, and Shutt brands.

CONMED Fundamentals Summary

How do CONMED's earnings and revenue compare to its market cap?
CNMD fundamental statistics
Market Cap	US$2.78b
Earnings (TTM)	US$67.66m
Revenue (TTM)	US$1.02b

41.1x

P/E Ratio

2.7x

P/S Ratio

Is CNMD overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CNMD income statement (TTM)
Revenue	US$1.02b
Cost of Revenue	US$444.71m
Gross Profit	US$575.58m
Other Expenses	US$507.92m
Earnings	US$67.66m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.29
Gross Margin	56.41%
Net Profit Margin	6.63%
Debt/Equity Ratio	90.6%

How did CNMD perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

35%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is CNMD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CNMD?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CNMD. This is calculated by dividing CNMD's market cap by their current preferred multiple.
What is CNMD's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$2.78b

CNMD key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3.4x
Enterprise Value/EBITDA	19.5x
PEG Ratio	1.4x

Price to Earnings Ratio vs Peers

How does CNMD's PE Ratio compare to its peers?

CNMD PE Ratio vs Peers

The above table shows the PE ratio for CNMD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	32.8x

Forward PE

Price-To-Earnings vs Peers: CNMD is expensive based on its Price-To-Earnings Ratio (41.1x) compared to the peer average (32.8x).

Price to Earnings Ratio vs Industry

How does CNMD's PE Ratio compare vs other companies in the U.S. Medical Equipment Industry?

Price-To-Earnings vs Industry: CNMD is expensive based on its Price-To-Earnings Ratio (41.1x) compared to the US Medical Equipment industry average (34.8x)

Price to Earnings Ratio vs Fair Ratio

What is CNMD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CNMD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	41.1x
Fair PE Ratio	40x

Price-To-Earnings vs Fair Ratio: CNMD is expensive based on its Price-To-Earnings Ratio (41.1x) compared to the estimated Fair Price-To-Earnings Ratio (40x).

Share Price vs Fair Value

What is the Fair Price of CNMD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CNMD ($94.07) is trading below our estimate of fair value ($133.78)

Significantly Below Fair Value: CNMD is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: CNMD is poor value based on its PEG Ratio (1.4x)

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Future Growth

How is CONMED forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

29.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNMD's forecast earnings growth (29.9% per year) is above the savings rate (1.9%).

Earnings vs Market: CNMD's earnings (29.9% per year) are forecast to grow faster than the US market (14% per year).

High Growth Earnings: CNMD's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CNMD's revenue (9.2% per year) is forecast to grow faster than the US market (8.4% per year).

High Growth Revenue: CNMD's revenue (9.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CNMD's Return on Equity is forecast to be low in 3 years time (16.6%).

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Past Performance

How has CONMED performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

3.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CNMD has high quality earnings.

Growing Profit Margin: CNMD's current net profit margins (6.6%) are higher than last year (1.5%).

Past Earnings Growth Analysis

Earnings Trend: CNMD's earnings have grown by 3.8% per year over the past 5 years.

Accelerating Growth: CNMD's earnings growth over the past year (403%) exceeds its 5-year average (3.8% per year).

Earnings vs Industry: CNMD earnings growth over the past year (403%) exceeded the Medical Equipment industry 12.9%.

Return on Equity

High ROE: CNMD's Return on Equity (8.6%) is considered low.

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Financial Health

How is CONMED's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CNMD's short term assets ($488.3M) exceed its short term liabilities ($187.6M).

Long Term Liabilities: CNMD's short term assets ($488.3M) do not cover its long term liabilities ($808.6M).

Debt to Equity History and Analysis

Debt Level: CNMD's net debt to equity ratio (87.4%) is considered high.

Reducing Debt: CNMD's debt to equity ratio has increased from 86.6% to 90.6% over the past 5 years.

Debt Coverage: CNMD's debt is not well covered by operating cash flow (12.5%).

Interest Coverage: CNMD's interest payments on its debt are well covered by EBIT (3.7x coverage).

Balance Sheet

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Dividend

What is CONMED current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.85%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CNMD's dividend (0.85%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: CNMD's dividend (0.85%) is low compared to the top 25% of dividend payers in the US market (4.24%).

Stability and Growth of Payments

Stable Dividend: CNMD is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: CNMD is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: CNMD is not paying a notable dividend for the US market.

Cash Payout to Shareholders

Cash Flow Coverage: CNMD is not paying a notable dividend for the US market.

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Management

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

7.4yrs

Average management tenure

CEO

Curt Hartman (57 yo)

7.92yrs

Tenure

US$9,374,480

Compensation

Mr. Curt R. Hartman has been Chairman of the Board at CONMED Corporation since May 21, 2020. Mr. Hartman has been the Chief Executive Officer and President of CONMED Corporation since November 09, 2014. Mr...

CEO Compensation Analysis

Compensation vs Market: Curt's total compensation ($USD9.37M) is above average for companies of similar size in the US market ($USD6.89M).

Compensation vs Earnings: Curt's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: CNMD's management team is seasoned and experienced (7.4 years average tenure).

Board Members

Experienced Board: CNMD's board of directors are considered experienced (6.9 years average tenure).

Ownership

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

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31