Conmed (CNMD) AI Stock Analysis

• Market Cap: $1.66B
• Dividend Yield: 1.51%
• Average Volume (3M): 497.39K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.52
• Revenue Growth: 4.02%
• EPS Growth: 11.32%
• Country: US
• Employees: 3,900
• Sector: Healthcare
• Sector Strength: 50
• Industry: Medical - Devices
• EPS (TTM): 1.15
• Shares Outstanding: 30,954,964
• 10 Day Avg. Volume: 296,685
• 30 Day Avg. Volume: 497,392
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.49
• Enterprise Value/Revenue: 1.86
• Enterprise Value/Gross Profit: 3.31
• Enterprise Value/Ebitda: 10.88
• 1Y Price Target: $68.00
• Price Target Upside: 28.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 78 Outperform
• Price Target: $62.00 ▲(17.27% Upside)

Conmed's overall stock score of 78 reflects its strong financial performance and positive earnings outlook. The company's attractive valuation and moderate technical indicators further support its potential for growth. While challenges exist in specific market segments, the company's strategic initiatives and product strengths position it well for future expansion.

Positive Factors

Earnings

CNMD's 1Q25 revenue and EPS exceeded consensus expectations, showcasing strong quarterly performance.

Financial Performance

Gross margin increased by 120 basis points year-over-year, indicating improved cost management.

Negative Factors

Debt Levels

CNMD's debt level limits its ability to acquire new growth drivers or repurchase shares, potentially affecting long-term growth.

Product Performance

Airseal disposables are experiencing a decline in sales for the first time since 2020, raising concerns about CONMED's growth outlook.

Revenue Growth

Revenue growth slowed to 2.9% as supply chain challenges and a decline in Capital Products revenue persisted.

Conmed Business Overview & Revenue Model

Company Description

Conmed Corporation (CNMD) is a global medical technology company that specializes in surgical instruments and devices for minimally invasive procedures, primarily in the orthopedic, surgical, and specialty markets. The company focuses on developing innovative products and solutions to enhance patient outcomes and improve surgical efficiency. Conmed's core offerings include surgical video systems, powered surgical instruments, and a variety of orthopedic and general surgical devices.

How the Company Makes Money

Conmed generates revenue primarily through the sale of its medical devices and surgical instruments. The company has a diversified revenue model that includes direct sales to hospitals and healthcare providers, as well as distribution through third-party partners. Key revenue streams come from their product categories such as arthroscopy, electrosurgery, and orthopedic instruments. Additionally, Conmed benefits from recurring revenue through the sale of disposable products used in surgical procedures. Significant partnerships with healthcare institutions and collaborations for research and development further contribute to its earnings, as they enhance product offerings and expand market reach.

Conmed Financial Statement Overview

Summary

Conmed shows steady revenue growth and strong cash flow generation. Margins are good, but high leverage and a slight decrease in net profit margin pose risks. Improvement in ROE and cash flow performance is positive, but managing debt and improving net margins remain crucial.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.33B	1.31B	1.24B	1.05B	1.01B	862.46M
Gross Profit	745.40M	733.03M	676.25M	571.25M	568.04M	460.30M
EBITDA	226.56M	272.18M	192.48M	7.80M	158.38M	113.58M
Net Income	110.20M	132.42M	64.46M	-80.58M	62.54M	9.52M
Balance Sheet
Total Assets	2.33B	2.31B	2.30B	2.30B	1.77B	1.75B
Cash, Cash Equivalents and Short-Term Investments	33.94M	24.46M	24.30M	28.94M	20.85M	27.36M
Total Debt	881.83M	905.78M	991.25M	1.05B	684.66M	775.86M
Total Liabilities	1.33B	1.34B	1.47B	1.55B	980.58M	1.04B
Stockholders Equity	1.00B	962.68M	834.22M	745.54M	785.43M	709.04M
Cash Flow
Free Cash Flow	148.24M	153.88M	106.32M	11.58M	96.90M	51.52M
Operating Cash Flow	165.21M	166.97M	125.35M	33.37M	111.77M	64.53M
Investing Cash Flow	-16.12M	-13.08M	-20.03M	-249.53M	-14.87M	-13.64M
Financing Cash Flow	-144.83M	-151.00M	-110.43M	225.00M	-101.55M	-52.06M

Conmed Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 52.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 52.87 is below the 20-day moving average (MA) of 53.92, above the 50-day MA of 52.33, and below the 200-day MA of 59.65, indicating a neutral trend. The MACD of 0.47 indicates Positive momentum. The RSI at 54.61 is Neutral, neither overbought nor oversold. The STOCH value of 37.61 is Neutral, 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
CNMD	78 Outperform	$1.66B	15.12	11.69%	1.51%	4.02%	11.32%
LIVN	61 Neutral	$3.08B	30.62	-17.87%	―	8.57%	-1154.64%
AORT	55 Neutral	$2.06B	―	-5.01%	―	7.44%	-109.83%
AVNS	54 Neutral	$554.97M	45.80	-46.17%	―	1.48%	-6091.13%
Sector *	51 Neutral	$7.90B	-0.33	-41.70%	2.23%	23.45%	-1.99%
IART	50 Neutral	$1.18B	―	-38.92%	―	3.53%	-2309.98%
BFLY	47 Neutral	$405.30M	―	-29.42%	―	23.13%	46.62%

Conmed Corporate Events

Conmed Declares Quarterly Cash Dividend Announcement

On August 7, 2025, CONMED Corporation’s Board of Directors declared a quarterly cash dividend of $0.20 per share, which will be payable on October 3, 2025, to shareholders recorded by September 15, 2025. This announcement reflects CONMED’s ongoing commitment to returning value to its shareholders and may positively influence investor sentiment and the company’s market position.

Conmed Board Member Martha Aronson Resigns

On July 7, 2025, CONMED Corporation announced that Martha Aronson will resign from its Board of Directors to become the President and CEO of Merit Medical Systems, a leader in medical device development and distribution. Her departure marks the end of a tenure that began in February 2016, during which she contributed significantly to the company’s strategic growth and governance. The leadership at CONMED expressed gratitude for her service and wished her success in her new role.

Conmed Secures New Credit Agreement with JPMorgan

On June 10, 2025, CONMED Corporation and its subsidiary Linvatec Nederland B.V. entered into an Eighth Amended and Restated Credit Agreement with several financial institutions, including JPMorgan Chase Bank, N.A. This agreement, which amends a previous credit agreement from July 16, 2021, provides CONMED with a $550 million U.S. dollar revolving credit facility, a $100 million multicurrency revolving credit facility, and a $100 million term loan facility. The new agreement extends the maturity of these facilities to June 10, 2030, and introduces changes such as a minimum interest coverage ratio and the removal of mandatory prepayments for excess cash flow. The credit agreement is secured by CONMED’s assets and includes customary covenants and events of default, potentially impacting the company’s financial operations and strategic flexibility.