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Conmed (CNMD)
NYSE:CNMD
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Conmed
(NYSE:CNMD)
71Outperform
Positive Factors
Earnings
CNMD's 4Q24 revenue and EPS beat consensus.
Product Development
The addition of BioBrace to RCR in high-risk patients resulted in favorable outcomes, including low clinical failure rate at one-year follow-up as well as significant improvements in pain, function, and range of motion.
Negative Factors
Financial Performance
Management provided 2025 revenue and EPS guidance below consensus due to continued supply chain challenges.
Conmed (CNMD) vs. S&P 500 (SPY)
Market Cap
$1.91B
Dividend Yield1.29%
Average Volume (3M)565.94K
Price to Earnings (P/E)14.6
Beta (1Y)0.66
Revenue Growth4.98%
EPS Growth104.60%
CountryUS
Employees3,900
SectorHealthcare
Sector Strength78
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)4.25
Shares Outstanding30,908,834
10 Day Avg. Volume601,774
30 Day Avg. Volume565,943
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)N/A
Price to Sales (P/S)1.46
Price to Cash Flow (P/CF)11.00
P/FCF Ratio10.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$77.17Price Target Upside30.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Conmed Business Overview & Revenue Model
Company DescriptionCONMED Corp. operates as a medical technology company, which engages in the development, manufacture and sale of surgical devices and related equipment. It operates through the following geographical segments: United States; Americas excluding the United States; Europe, Middle East, and Africa; and Asia Pacific. Its product lines also include orthopedic surgey and general surgery. The company was founded by Eugene R. Corasanti in 1970 and is headquartered in Utica, NY.
How the Company Makes MoneyConmed generates revenue through the manufacturing and sale of its diverse portfolio of medical devices and surgical instruments. The company's primary revenue streams come from selling products directly to hospitals, outpatient surgery centers, and healthcare facilities worldwide. Conmed also benefits from its extensive distribution network and strategic partnerships with healthcare providers, which help to expand its market reach. The company invests in research and development to continuously innovate and maintain a competitive edge in the medical technology industry, thus driving sales growth and sustaining its revenue model.
Conmed Financial Statement Overview
Summary
Conmed's financial health appears solid overall, with strong revenue growth and improving profitability metrics. The company has managed its leverage prudently, though maintaining vigilance over debt levels is advisable. Cash flow generation is robust, supporting financial stability. Continued focus on improving net margins and managing debt will be crucial for sustainable growth.Income Statement
Conmed shows a strong revenue growth trend, with a consistent increase in total revenue over the years. The gross profit margin is excellent, indicating effective cost management. However, the net profit margin has fluctuated, improving recently but previously experiencing negative values, which reflects variability in bottom-line profitability. EBIT and EBITDA margins have seen improvement, suggesting enhanced operational efficiency.82
Very Positive
Balance Sheet
The balance sheet reflects a moderate debt-to-equity ratio, implying moderate leverage that could pose some risk if not managed well. Stockholders' equity has been increasing, indicating a strengthening equity position. The equity ratio is reasonable, showing a balanced asset financing strategy, but the company still carries significant liabilities.75
Positive
Cash Flow
Conmed's cash flow statement indicates strong free cash flow generation, with a notable growth rate. The operating cash flow to net income ratio demonstrates efficient cash conversion from earnings. However, the free cash flow to net income ratio suggests room for improvement in translating earnings into cash flow, despite recent enhancements.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.31B | 1.24B | 1.05B | 1.01B | 862.46M | Gross Profit |
| 733.03M | 676.25M | 571.25M | 568.04M | 460.30M | EBIT |
| 200.33M | 130.79M | 70.05M | 37.85M | -26.97M | EBITDA |
| 272.18M | 192.48M | 7.80M | 158.38M | 113.58M | Net Income Common Stockholders |
| 132.42M | 64.46M | -80.58M | 62.54M | 9.52M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 24.46M | 24.30M | 28.94M | 20.85M | 27.36M | Total Assets |
| 2.31B | 2.30B | 2.30B | 1.77B | 1.75B | Total Debt |
| 905.78M | 991.25M | 1.05B | 684.66M | 775.86M | Net Debt |
| 881.32M | 966.96M | 1.03B | 663.81M | 748.50M | Total Liabilities |
| 1.34B | 1.47B | 1.55B | 980.58M | 1.04B | Stockholders Equity |
| 962.68M | 834.22M | 745.54M | 785.43M | 709.04M |
| Cash Flow | Free Cash Flow | |||
| 153.88M | 106.32M | 11.58M | 96.90M | 51.52M | Operating Cash Flow |
| 166.97M | 125.35M | 33.37M | 111.77M | 64.53M | Investing Cash Flow |
| -13.08M | -20.03M | -249.53M | -14.87M | -13.64M | Financing Cash Flow |
| -151.00M | -110.43M | 225.00M | -101.55M | -52.06M |
Conmed Technical Analysis
Negative
59.12
Price Trends
65.98
Negative
68.26
Negative
69.16
Negative
Market Momentum
-1.78
Negative
39.11
Neutral
62.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNMD, the sentiment is Negative. The current price of 59.12 is below the 20-day moving average (MA) of 61.11, below the 50-day MA of 65.98, and below the 200-day MA of 69.16, indicating a bearish trend. The MACD of -1.78 indicates Negative momentum. The RSI at 39.11 is Neutral, neither overbought nor oversold. The STOCH value of 62.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNMD.
Conmed Risk Analysis
Conmed disclosed 33 risk factors in its most recent earnings report. Conmed reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Conmed Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $139.39B | 47.06 | 15.26% | 0.89% | 10.23% | -5.74% | |
78 Outperform | $140.97B | 76.57 | 9.03% | ― | 17.60% | 16.84% | |
77 Outperform | $119.64B | 28.35 | 8.42% | 3.05% | 2.72% | 4.48% | |
75 Outperform | $176.09B | 76.98 | 15.62% | ― | 17.24% | 27.76% | |
72 Outperform | $21.37B | 24.22 | 7.24% | 0.89% | 3.84% | -9.29% | |
71 Outperform | $1.91B | 14.57 | 14.74% | 1.29% | 4.98% | 104.60% | |
49 Neutral | $6.90B | 0.02 | -54.05% | 2.46% | 24.91% | -3.14% |
* Healthcare Sector Average
Performance Comparison
CNMD
Conmed
58.49
-19.57
-25.07%
BSX
Boston Scientific
95.37
28.51
42.64%
ISRG
Intuitive Surgical
476.78
92.47
24.06%
MDT
Medtronic
92.33
10.73
13.15%
SYK
Stryker
363.66
11.27
3.20%
ZBH
Zimmer Biomet Holdings
107.57
-17.09
-13.71%
Conmed Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -20.11% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial performance in certain segments such as General Surgery and AirSeal, with notable improvements in adjusted net income and operating margins. However, challenges such as ongoing supply chain issues in the Orthopedic segment, currency headwinds, and potential tariff impacts were also discussed. The company's focus on resolving these issues and leveraging growth drivers indicates a balanced outlook.Highlights
Strong Fourth Quarter Sales Growth
Total sales for the fourth quarter were $345.9 million, representing a year-over-year increase of 5.8% as reported and 6% in constant currency.
Significant Improvement in Adjusted Net Income
Adjusted net income of $41.8 million increased 26.2% year-over-year, and adjusted diluted net earnings per share of $1.34 increased 26.4% year-over-year.
General Surgery Business Performance
General Surgery business performed well with constant currency growth of 8.7% in the fourth quarter and 7.5% for the full year.
Strong Performance of AirSeal
AirSeal experienced strong double-digit growth with record capital and disposable sales despite market changes.
Improved Operating Margins
Adjusted operating margin for the full year 2024 improved by 150 basis points over 2023, reaching 15.5%.
Lowlights
Supply Challenges in Orthopedic Business
The Orthopedic business faced ongoing supply challenges, with sales increasing only 2.5% for the full year 2024.
Currency Headwinds
Currency was noted as a headwind, with an estimated impact of 100 to 120 basis points on 2025 revenue guidance and 50 basis points on gross margins.
Tariff Uncertainty
Uncertainty around potential tariffs from Mexico, Canada, and China could significantly impact costs, with a worst-case scenario of $45 million in tariffs from Mexico and Canada and up to $10.5 million annually from China starting in June.
Company Guidance
During the CONMED Fourth Quarter Fiscal Year 2024 Earnings Conference Call, the company reported total sales of $345.9 million for the quarter, marking a 5.8% increase year-over-year as reported, and 6% in constant currency. GAAP net income for the quarter was $33.8 million, with adjusted net income rising by 26.2% to $41.8 million. For the full year, sales reached $1.307 billion, reflecting a 5% increase as reported and 5.3% in constant currency. The Orthopedic business, despite facing supply challenges, grew 2.4% in the fourth quarter and 2.5% for the year. Meanwhile, the General Surgery segment showed robust growth with an 8.7% increase in the fourth quarter and 7.5% for the year in constant currency. The AirSeal product continued to demonstrate strong double-digit growth. Looking ahead to 2025, CONMED projects revenue growth between 4% and 6% in constant currency, with an adjusted EPS guidance range of $4.25 to $4.40, excluding potential impacts from tariffs. The company is focused on resolving supply challenges in its Orthopedic division and capitalizing on key growth drivers such as AirSeal and BioBrace.Conmed Corporate Events
Executive/Board ChangesDividends
Conmed Expands Board with New Director Appointment
Positive
Feb 26, 2025
On February 24, 2025, CONMED Corporation expanded its Board of Directors to nine members by appointing Mark Kaye as a director. Kaye, who brings extensive experience in finance and healthcare, will serve on the Audit and Strategy Committees. The company also declared a quarterly cash dividend of $0.20 per share, payable on April 4, 2025, to shareholders of record as of March 14, 2025. This strategic appointment and dividend announcement underscore CONMED’s commitment to leveraging financial expertise for growth and rewarding its shareholders.
Product-Related AnnouncementsBusiness Operations and Strategy
Conmed Highlights Growth Strategy at Healthcare Conference
Positive
Jan 13, 2025
CONMED Corporation is presenting at the J.P. Morgan Healthcare Conference, highlighting its strategy to boost long-term growth and profitability by evolving its product mix towards higher-margin offerings and expanding market share in key areas like orthopedics and general surgery. The company aims to enhance its industry positioning by delivering above-market revenue growth, driven by innovations in products such as BioBrace and AirSeal, and focusing on operational excellence and environmental, social, and governance initiatives.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.