Conmed (CNMD) AI Stock Analysis

• Market Cap: $1.42B
• Dividend Yield: 2.02%
• Average Volume (3M): 368.83K
• Price to Earnings (P/E): 30.5
• Beta (1Y): 0.49
• Revenue Growth: 4.69%
• EPS Growth: -51.57%
• Country: US
• Employees: 3,900
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 1.43
• Shares Outstanding: 30,833,536
• 10 Day Avg. Volume: 284,080
• 30 Day Avg. Volume: 368,831
• PEG Ratio: -0.41
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 0.92
• P/FCF Ratio: 8.35
• Enterprise Value/Market Cap: 1.56
• Enterprise Value/Revenue: 1.61
• Enterprise Value/Gross Profit: 3.00
• Enterprise Value/Ebitda: 12.57
• 1Y Price Target: $49.67
• Price Target Upside: 11.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 4.44
• Revenue Forecast (FY): $1.36B

• Rating: 61 Neutral
• Price Target: $44.00 ▼(-0.79% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by steady cash-flow strength but held back by volatile profitability and meaningful leverage. Technicals are only modestly supportive (better short-term, weaker long-term), while valuation appears demanding for a business facing near-term tariff and portfolio-transition headwinds despite constructive 2026 guidance.

Positive Factors

Consistent free cash flow

Conmed’s FCF resilience (roughly $150M in 2024–2025) shows durable cash conversion even when GAAP earnings fell. Strong, predictable free cash flow supports R&D, buybacks or deleveraging, and provides financial flexibility to fund strategic repositioning over the next 2–6 months.

High‑growth platform traction (AirSeal)

AirSeal’s low current penetration and 1.6M procedural footprint indicate a large addressable market and multi-year organic growth potential. Durable adoption in minimally invasive surgery supports sustained revenue upside and attachment economics that can lift long‑term margins as penetration increases.

Portfolio focus and margin improvement

Strategic exit from GI narrows focus to higher‑return core franchises (minimally invasive surgery, orthopedics), and management expects an ~80bp gross margin tailwind. This structural portfolio tightening can improve long‑term margin sustainability despite near‑term EPS dilution.

Negative Factors

Elevated leverage

Material net leverage (>$800M debt, ~2.9x leverage) constrains strategic flexibility. If margins remain pressured, interest and refinancing risk could limit investment or force slower deleveraging, making balance‑sheet risk a durable headwind as the business pivots.

Volatile profitability

Significant swings in operating and net margins (sharp step‑down in 2025) show earnings are sensitive to portfolio actions, tariffs and special items. Persistent margin volatility undermines predictability of free cash flow and returns, complicating long‑term planning and investor confidence.

Tariff and SG&A headwinds

Sustained tariff pressure (~100–110bps) combined with elevated SG&A/R&D investment to accelerate growth compresses near‑to‑medium‑term margins. These structural cost pressures reduce the pace at which operational improvements translate into durable earnings and free cash flow expansion.

Conmed Business Overview & Revenue Model

Company Description

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. It also offers general surgery products, such as clinical insufflation, smoke evacuation, electrosurgical, and endomechanical products; and endoscopic technologies, including diagnostic and therapeutic products for use in gastroenterology procedures, and products for the treatment of diseases of the biliary structures, as well as cardiac monitoring products comprising ECG and EEG electrodes, and cardiac defibrillation pads. The company markets its products directly to hospitals, surgery centers, and other healthcare institutions, as well as through medical specialty distributors. CONMED Corporation was incorporated in 1970 and is headquartered in Largo, Florida.

How the Company Makes Money

Conmed generates revenue through multiple key streams, primarily from the sale of its surgical devices and equipment. The company's product offerings can be categorized into two main segments: surgical devices and orthopedic products. Surgical devices, including electrosurgical and endoscopic instruments, represent a significant portion of Conmed's revenue, as they are essential tools in various surgical procedures. Additionally, Conmed benefits from recurring revenue through disposable products that accompany its surgical instruments. The orthopedic segment contributes to revenue through the sale of implants and instrumentation used in orthopedic surgeries. Strategic partnerships with healthcare providers, hospitals, and surgical centers also play a crucial role in expanding Conmed's market reach, allowing the company to establish long-term contracts and ensure a steady stream of income. Furthermore, ongoing investments in research and development enable Conmed to innovate and introduce new products, thereby enhancing its competitive position and driving future revenue growth.

Conmed Financial Statement Overview

Summary

Solid cash generation (free cash flow stayed positive and resilient even as earnings fell), but profitability has been volatile with notable margin compression and a sharp step-down in earnings in 2025. Balance sheet leverage remains meaningful, limiting flexibility if profitability stays pressured.

Income Statement

Revenue has grown steadily off the 2020 base (down year), with 2023 a strong rebound and 2024–2025 showing continued but slower growth. Profitability is mixed: gross margin has been consistently healthy (~54–56%), but operating and net margins have been volatile—2022 swung to a loss, 2024 recovered strongly, and 2025 saw a sharp step-down in earnings (net margin fell to ~3.4% from ~10.1% in 2024). Overall, the top-line profile is constructive, but recent margin compression and earnings variability weigh on the score.

Balance Sheet

Leverage is meaningful, though trending better: debt relative to equity improved from elevated levels in 2022–2023 to ~0.81 in 2025 as equity increased and debt declined. Returns on shareholder capital have also been volatile, swinging negative in 2022, improving in 2023–2024, and then moderating in 2025 alongside weaker earnings. The balance sheet is not distressed, but the debt load and uneven return profile reduce financial flexibility versus stronger peers.

Cash Flow

Cash generation is a relative strength. Operating cash flow and free cash flow are solid and have remained positive across the period, with free cash flow in the ~$150M range in both 2024 and 2025. Free cash flow has consistently tracked net income well, and 2025 free cash flow held up despite the sharp drop in earnings—supporting cash resiliency. The main weakness is that operating cash flow has not consistently covered a large portion of total debt (coverage remained modest across years), which matters given the leverage profile.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.37B	1.31B	1.24B	1.05B	1.01B
Gross Profit	740.61M	733.03M	676.25M	571.25M	568.04M
EBITDA	176.84M	272.18M	192.48M	7.80M	179.33M
Net Income	47.05M	132.42M	64.46M	-80.58M	62.54M
Balance Sheet
Total Assets	2.33B	2.31B	2.30B	2.30B	1.77B
Cash, Cash Equivalents and Short-Term Investments	40.82M	24.46M	24.30M	28.94M	20.85M
Total Debt	834.94M	905.78M	991.25M	1.05B	684.66M
Total Liabilities	1.29B	1.34B	1.47B	1.55B	980.58M
Stockholders Equity	1.03B	962.68M	834.22M	745.54M	785.43M
Cash Flow
Free Cash Flow	150.88M	153.88M	106.32M	11.58M	96.90M
Operating Cash Flow	170.69M	166.97M	125.35M	33.37M	111.77M
Investing Cash Flow	-20.96M	-13.08M	-20.03M	-249.53M	-14.87M
Financing Cash Flow	-135.82M	-151.00M	-110.43M	225.00M	-101.55M

Conmed Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 44.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNMD, the sentiment is Positive. The current price of 44.35 is above the 20-day moving average (MA) of 42.73, above the 50-day MA of 41.74, and below the 200-day MA of 47.85, indicating a neutral trend. The MACD of 1.34 indicates Negative momentum. The RSI at 68.35 is Neutral, neither overbought nor oversold. The STOCH value of 82.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CNMD.

Conmed Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UFPT	69 Neutral	$1.62B	24.00	17.82%	―	29.47%	23.24%
CNMD	61 Neutral	$1.42B	30.45	6.60%	2.02%	4.69%	-51.57%
AORT	59 Neutral	$1.84B	192.79	-2.45%	―	9.81%	-1067.00%
AHCO	56 Neutral	$1.24B	-17.24	-4.62%	―	-0.23%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PRCT	48 Neutral	$1.28B	-13.19	-24.89%	―	50.07%	21.22%
IART	47 Neutral	$886.93M	-1.69	-39.90%	―	4.99%	-7151.40%

Conmed Corporate Events

CONMED Highlights Growth Outlook at J.P. Morgan Conference

On January 12, 2026, CONMED presented an investor deck at the J.P. Morgan Healthcare Conference that outlined preliminary 2026 financial guidance and highlighted its expectation for mid‑term revenue growth of roughly 4% to 9% at the company level, underpinned by 4% to 8% growth in orthopedics and 5% to 11% in general surgery. The materials emphasized the firm’s track record of consistent revenue and adjusted EPS expansion, driven by high‑growth platforms such as the AirSeal insufflation system, Buffalo Filter smoke evacuation products, and BioBrace reinforced bioinductive implants, all positioned in large and growing markets with clinical differentiation and regulatory or legislative tailwinds, signaling management’s confidence in sustained long‑term growth and reinforcing CONMED’s competitive positioning in minimally invasive surgery and sports medicine.

The most recent analyst rating on (CNMD) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Conmed stock, see the CNMD Stock Forecast page.

CONMED Announces Planned CFO Transition and Successor Search

On January 8, 2026, CONMED Corporation announced that Chief Financial Officer Todd Garner will separate from his CFO role effective on the earlier of March 15, 2026, or the appointment of a new permanent CFO, as the company initiates a comprehensive external search for his successor. The company emphasized that Garner’s departure is not due to any disagreement over operations, policies, financial results, or accounting practices, and detailed a transition arrangement under which he will remain with CONMED through November 2, 2026 in a consulting capacity, continue to receive his current base salary, remain eligible for certain cash bonuses and benefits, and have his outstanding equity awards continue to vest through the end of the consulting period, underscoring a structured and orderly leadership transition for financial stakeholders.

The most recent analyst rating on (CNMD) stock is a Hold with a $44.00 price target. To see the full list of analyst forecasts on Conmed stock, see the CNMD Stock Forecast page.

Conmed Exits Gastroenterology Products to Focus on Core Markets

On December 5, 2025, CONMED Corporation announced its strategic decision to exit its gastroenterology product lines as part of its portfolio optimization strategy. This move includes terminating its distribution agreement with W.L. Gore & Associates for the Gore® VIABIL® biliary stent, effective January 1, 2026, and exiting other gastroenterology products. The company aims to focus on its core markets, such as minimally invasive surgery and orthopedic soft tissue repair, to enhance long-term success and leadership in surgical innovation. Financially, the exit is expected to improve CONMED’s gross margin profile by approximately 80 basis points, despite an anticipated EPS dilution of $0.45–$0.55 in 2026. The company reaffirms its 2025 revenue and EPS guidance, indicating no material impact on its financial results for that year.

The most recent analyst rating on (CNMD) stock is a Hold with a $48.00 price target. To see the full list of analyst forecasts on Conmed stock, see the CNMD Stock Forecast page.