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Conmed (CNMD)
NYSE:CNMD
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Conmed
(NYSE:CNMD)
72Outperform
Positive Factors
Consulting engagement
A top-tier consulting firm has been engaged to help remedy ongoing orthopedic supply issues and enhance company operations.
Financial performance
CNMD's 1Q25 revenue and EPS beat consensus.
Operational improvements
CNMD seems to be making positive initial strides toward driving improved sales growth and operational execution.
Negative Factors
Competition concerns
There is concern about Airseal's performance as the ISRG DV5 launch approaches, which could impact CONMED's market position.
Supply chain challenges
Efforts to address supply chain challenges may weigh on margins.
Tariff uncertainties
The company faces significant exposure to tariff uncertainties due to a large portion of its sales volume being sourced through its Mexico manufacturing facility.
Conmed (CNMD) vs. S&P 500 (SPY)
Market Cap
$1.78B
Dividend Yield1.4%
Average Volume (3M)556.14K
Price to Earnings (P/E)13.6
Beta (1Y)0.50
Revenue Growth4.35%
EPS Growth43.62%
CountryUS
Employees3,900
SectorHealthcare
Sector Strength58
IndustryMedical - Devices
Share Statistics
EPS (TTM)3.81
Shares Outstanding30,929,768
10 Day Avg. Volume602,273
30 Day Avg. Volume556,142
Financial Highlights & Ratios
PEG Ratio0.31
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.71
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit4.17
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$62.20Price Target Upside7.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Conmed Business Overview & Revenue Model
Company DescriptionConmed Corporation (CNMD) is a global medical technology company that specializes in providing surgical devices and equipment for minimally invasive procedures. Operating primarily within the orthopedics, general surgery, gynecology, gastroenterology, and pulmonology sectors, Conmed offers a wide range of products, including endoscopic technologies, surgical instruments, electrosurgical products, and advanced energy solutions. The company's mission is to empower healthcare professionals by delivering innovative solutions that improve patient outcomes and enhance surgical performance.
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 demonstrates a stable financial position with consistent revenue growth and strong cash flow generation. The company maintains good margins, though high leverage poses a potential risk. The improved ROE and steady Free Cash Flow growth reflect positively on the company's financial health. Continued focus on managing debt and improving net margins will be crucial for enhancing overall financial performance.Income Statement
Conmed has shown steady revenue growth with a TTM revenue increase of 1% over the previous year. Gross Profit Margin is strong at 55.44%, indicating effective cost management. However, the Net Profit Margin decreased slightly to 9.02% in the TTM, which is a concern. Despite this, the EBIT and EBITDA margins of 13.01% and 16.50% respectively reflect good operational efficiency.75
Positive
Balance Sheet
The company's Debt-to-Equity Ratio is relatively high at 0.91, suggesting significant leverage. However, the Return on Equity (ROE) has improved to 12.15%, indicating better profitability relative to shareholder equity. The Equity Ratio is 42.55%, which highlights a balanced capital structure, though there is room for improvement.70
Positive
Cash Flow
Free Cash Flow has grown by 6.94% in the TTM, a positive indicator of the company's cash-generating ability. The Operating Cash Flow to Net Income ratio is robust at 1.51, showing strong cash conversion from profits. Furthermore, the Free Cash Flow to Net Income ratio at 1.39 underscores solid cash flow performance.80
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 |
| 251.63M | 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
Positive
57.68
Price Trends
56.67
Positive
62.86
Negative
66.29
Negative
Market Momentum
-1.64
Negative
58.27
Neutral
73.52
Neutral
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 57.68 is above the 20-day moving average (MA) of 51.69, above the 50-day MA of 56.67, and below the 200-day MA of 66.29, indicating a neutral trend. The MACD of -1.64 indicates Negative momentum. The RSI at 58.27 is Neutral, neither overbought nor oversold. The STOCH value of 73.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.78B | 13.57 | 14.74% | 1.40% | 4.35% | 43.62% | |
54 Neutral | $2.00B | 32.03 | 4.87% | ― | 8.33% | 256.54% | |
53 Neutral | $995.94M | ― | -4.78% | ― | 9.75% | 57.91% | |
53 Neutral | $1.30B | ― | -0.44% | ― | 4.47% | -110.70% | |
52 Neutral | $5.36B | 3.88 | -42.93% | 2.87% | 17.85% | 1.45% | |
50 Neutral | $567.22M | 45.80 | -37.42% | ― | -2.54% | -546.91% | |
46 Neutral | $578.66M | ― | -37.28% | ― | 24.51% | 47.32% |
* Healthcare Sector Average
Performance Comparison
CNMD
Conmed
57.68
-12.25
-17.52%
AORT
Artivion
23.33
2.26
10.73%
IART
Integra Lifesciences
16.85
-6.29
-27.18%
AVNS
Avanos Medical
12.29
-7.44
-37.71%
LIVN
LivaNova
36.78
-25.82
-41.25%
BFLY
Butterfly Network
2.33
1.36
140.21%
Conmed Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 17.45%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance with strong revenue and earnings growth, improvement in key product segments, and positive cash flow management. However, supply chain challenges, international sales declines, and concerns over tariffs and currency impacts pose significant obstacles.Q1-2025 Updates
Positive Updates
Revenue Growth
Total sales for the quarter were $321.3 million, representing a year-over-year increase of 2.9% as reported and 3.8% in constant currency, which was better than the guidance provided.
Earnings Increase
Adjusted net income of $29.6 million increased 19.6% year-over-year and adjusted diluted net earnings per share of $0.95 increased 20.1% year-over-year.
Strong Performance in Key Segments
Orthopedics saw constant currency sales growth of 3.9%, led by double-digit sales growth in foot and ankle products and strong demand for BioBrace. General Surgery also grew 3.8%, driven by AirSeal and smoke evacuation with double-digit demand.
Supply Chain Improvement
Progress has been made in reducing the number of SKUs on backorder, with expectations to be in a better position by year-end.
Cash Flow and Debt Management
Cash flow from operations was $41.5 million compared to $29.1 million in the first quarter of 2024. Long-term debt decreased from $905.1 million at the end of 2024 to $891.4 million.
Negative Updates
Supply Chain Challenges
While progress is being made, the company is not yet where it needs to be with supply chain operations, impacting U.S. Orthopedic sales.
International Sales Decline in General Surgery
International General Surgery sales decreased by 3.3%, driven by declines in energy and critical care product lines.
Currency and Tariff Concerns
Tariffs on products from China, Canada, Europe, and the rest of the world could impact earnings by approximately $0.14 per share in 2025. Currency headwinds are expected to impact full-year earnings by $0.10 to $0.15 per share.
Capital Expenditure Increase
Capital expenditures increased to $3.8 million from $2.0 million a year ago, indicating potential pressure on cash flow.
Company Guidance
During CONMED's First Quarter Fiscal 2025 Earnings Conference Call, management provided updated financial guidance and insights into ongoing operational strategies. Total sales for the quarter reached $321.3 million, marking a 2.9% increase year-over-year, or 3.8% in constant currency, slightly surpassing initial guidance. Adjusted net income was reported at $29.6 million, a 19.6% increase from the previous year, with adjusted diluted earnings per share rising by 20.1% to $0.95. The company maintained its full-year constant currency growth guidance at 4% to 6%, adjusting the full-year revenue forecast to a range of $1.35 billion to $1.378 billion due to easing foreign exchange impacts. Adjusted EPS guidance was raised to $4.45 to $4.60, reflecting a currency-related improvement. Despite supply chain challenges, the company anticipates significant operational improvements and cost savings, expecting adjusted gross margins to remain relatively flat compared to 2024. The call also highlighted FDA clearance for a new BioBrace delivery device, promising further growth in orthopedics and surgical segments.Conmed Corporate Events
Executive/Board Changes
Andrew Moller Appointed as CONMED’s Principal Accounting Officer
Neutral
Apr 1, 2025
On January 27, 2025, Andrew Moller began his role as Vice President, Corporate Controller at CONMED Corporation, a company involved in the medical technology industry. By April 1, 2025, Moller was appointed as the Principal Accounting Officer, succeeding Todd W. Garner in this role. Additionally, Kimberly A. Lockwood was promoted to Senior Director of Financial Reporting. Moller brings extensive experience from his previous roles at Smith & Nephew plc and Stanley Black & Decker, enhancing CONMED’s leadership team.
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.
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.