CNMD  Conmed Corporation

Exchange

NASDAQ

Sector

Health Care

Industry

Biotechnology: Electromedical & Electrotherapeutic Apparatus

Market Cap.

1.40B

Vuru Grade

27.62/100

Current Price

$50.18
-1.00 (-1.95%)

Growth Price

$28.47
Overvalued by 43.27%

Stability Price

$12.28
Overvalued by 75.53%

Company Metrics

  • P/E 114.31
  • P/S 1.86
  • P/B 2.48
  • EPS 0.44
  • Cash ROIC 5.12%
  • Cash Ratio 0.24
  • Dividend 0.80 / 1.56 %
  • Avg. Vol. 133,153.00
  • Shares 27.90M
  • Market Cap. 1.40B

Company Description

CONMED Corporation, a medical technology company, provides surgical devices and equipment for minimally invasive procedures and monitoring. The company's products serve the clinical areas of arthroscopy, powered surgical instruments, electrosurgery, cardiac monitoring disposables, endosurgery, and endoscopic technologies. It offers arthroscopy products, including powered resection instruments, art... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

BRIEF-Conmed corporation says jury found Surgiquest liable for $2.2 mln in ...
Reuters - Apr 12, 2017
NEW YORK, April 29 Puerto Rico's government presented a debt restructuring offer late on Friday that could repay as much as 77 percent of general obligation (GO) bonds and 58 percent of tax-backed bonds, but both bondholder groups quickly rejected it ...
CONMED Corp.: Get Out
Seeking Alpha - Jan 25, 2017
Since the company consolidated its reporting in 2013, long term debt has grown rapidly at Conmed. For instance, during the period 2013 to the end of September 2016, revenue declined by about 5%, while long term indebtedness increased by 128%.
CONMED Corporation (CNMD) Ex-Dividend Date Scheduled for June 13, 2017
Nasdaq - Jun 12, 2017
CONMED Corporation ( CNMD ) will begin trading ex-dividend on June 13, 2017. A cash dividend payment of $0.2 per share is scheduled to be paid on July 05, 2017.
CONMED Corporation (NASDAQ:CNMD) expected to pay $0.20 on Jul 5, 2017 - WeeklyHub
CONMED Corporation (CNMD) EPS Estimated At $0.42
Weekly Register - 12 hours ago
Investors sentiment increased to 0.97 in 2016 Q4. Its up 0.12, from 0.85 in 2016Q3. It increased, as 12 investors sold CONMED Corporation shares while 48 reduced holdings. 17 funds opened positions while 41 raised stakes. 26.92 million shares or 2.31% ...
CONMED Corporation (CNMD) Receives News Sentiment Rating of 0.16 - The Cerbat Gem
Risk Malaise Alert in Option Market: CONMED Corporation Implied Price Swing ...
CML News - Jun 25, 2017
Before we dive into any analysis we simply note that CONMED Corporation (NASDAQ:CNMD) risk is actually priced pretty low by the option market as of right now.
CONMED Corporation (NASDAQ:CNMD) Trading Down – Short Interest Down by -5.83%
Highlight Press - Jun 15, 2017
Traders are more bullish on shares of CONMED Corporation lately if you pay attention to the motion in short interest. The company had a fall in short interest of -5.83% between May 31, 2017 and May 15, 2017.
CONMED Corporation (CNMD) Moves Lower on Volume Spike for June 16 - Equities.com
Gamco Investors INC. ET AL Holds Stake in CONMED Corporation (CNMD) - The Cerbat Gem
CONMED Corporation (CNMD) Breaks into New 52-Week High on June 05 Session
Equities.com - Jun 5, 2017
Shares of CONMED Corporation (CNMD) broke into a new 52-week high yesterday, hitting a peak of $52.36. Shares closed at $51.53 after opening at $52.23 for a move of -1.4%.
Conmed Corp (NASDAQ:CNMD) Institutional Investor Sentiment - WeeklyHub
Conmed Corporation (NASDAQ:CNMD) on Focus After Report of Less Shorts - KL Daily
CONMED Corporation (CNMD) Shares Bought by Comerica Bank
The Cerbat Gem - Jun 23, 2017
CONMED Corporation logo Comerica Bank boosted its stake in CONMED Corporation (NASDAQ:CNMD) by 4.1% during the first quarter, according to its most recent filing with the SEC.
Massachusetts Financial Services Co. MA Has $3.53 Million Stake in CONMED ... - BNB Daily (blog)
The Champlain Investment Partners LLC Has $76.76 Million Stake in CONMED ... - BangaloreWeekly
CONMED (CNMD) Hits a 52-Week High: What's Driving the Stock?
Nasdaq - Jun 14, 2017
Shares of Utica, NY-based leading medical technology player, CONMED Corporation CNMD rallied to a new 52-week high of $52.79 on Jun 13, closing a little lower at $52.49.
CONMED Corporation (CNMD) Breaks into New 52-Week High on June 14 Session - Equities.com
CONMED Corporation (CNMD) Sees Significant Drop in Short Interest - The Cerbat Gem
CONMED Corporation (CNMD) Breaks into New 52-Week High on June 02 Session
Equities.com - Jun 2, 2017
Shares of CONMED Corporation (CNMD) broke into a new 52-week high yesterday, hitting a peak of $52.34. Shares closed at $52.26 after opening at $52.09 for a move of 0.69%.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for CNMD to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate CNMD's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$50.18 Current Price

$28.47 Growth Price (DCF)

Overvalued by 43.27%


Growth Rate Assumed by Market: 40.73%


Future Free Cash Flow Growth Rate: 8.7%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$12.28 Stability Price (EPV)

Overvalued by 75.53%


Discount Rate: 15.0%

$33.14 Book Price

Overvalued by 33.95%


Poor Cash Return on Invested Capital over the past 5 years

CNMD has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

CNMD has only created $5.12 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 73.67M 62.50M 49.77M 33.06M 23.47M
divided by
Invested Capital 938.23M 924.80M 915.91M 920.72M 1.19B
Cash ROIC 7.85% 6.76% 5.43% 3.59% 1.98%

Poor Return on Equity over the past 5 years

CNMD has shown an inability to deliver strong results for shareholders. This could be due to poor management, CNMD operating in a highly competitive industry, or having a weak business in general.

CNMD has only generated $5.17 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 40.48M 35.94M 32.19M 30.50M 14.66M
divided by
Stockholders' Equity 607.00M 606.32M 581.30M 585.07M 580.58M
Return on Equity 6.67% 5.93% 5.54% 5.21% 2.53%

Excellent Business Performance over the past 10 years

CNMD has been able to maintain profitability in good times and bad. This could mean CNMD has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

CNMD has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 44.98M 25.27M 3.58M 23.51M 85.44M 73.67M 62.50M 49.77M 33.06M 23.47M

Weak Balance Sheet

CNMD's financial position is not ideal. The key is to check whether CNMD is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 11.70M 11.81M 10.10M 12.42M 26.05M 23.72M 54.44M 66.33M 72.50M 27.43M
Current Assets 279.02M 294.26M 325.61M 350.19M 356.72M 346.19M 372.13M 381.15M 407.49M 330.51M
Total Assets 893.95M 931.66M 958.41M 985.77M 935.59M 1.08B 1.09B 1.10B 1.11B 1.33B
Current Liabilities 77.28M 74.91M 79.11M 179.87M 131.18M 122.51M 111.27M 115.96M 119.72M 113.95M
Total Liabilities 388.95M 399.93M 381.90M 399.21M 362.52M 477.46M 484.19M 516.90M 527.87M 748.41M
Stockholder' Equity 505.00M 531.73M 576.52M 586.56M 573.07M 607.00M 606.32M 581.30M 585.07M 580.58M
Current Ratio 3.61 3.93 4.12 1.95 2.72 2.83 3.34 3.29 3.40 2.90
TL-to-TA 0.44 0.43 0.40 0.40 0.39 0.44 0.44 0.47 0.47 0.56

Low or No Reinvestment of Profits over the past 10 years

CNMD has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to CNMD operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 284.85M 327.47M 325.37M 354.02M 354.44M 377.91M 395.89M 406.15M 414.51M 406.93M
Retained Earnings Growth - 14.96% -0.64% 8.81% 0.12% 6.62% 4.76% 2.59% 2.06% -1.83%

Highly Competitive Industry over the past 10 years

It's likely that CNMD is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely CNMD invests heavily in R&D and Sales, General & Administrative expenses.

Only $3.86 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 41.46M 44.56M 12.14M 30.35M 752,000.00 40.48M 35.94M 32.19M 30.50M 14.66M
divided by
Revenue 694.29M 742.18M 694.74M 713.72M 725.08M 767.14M 762.70M 740.06M 719.17M 763.52M
Net Profit Margin 5.97% 6.00% 1.75% 4.25% 0.10% 5.28% 4.71% 4.35% 4.24% 1.92%

Strong Pricing Power over the past 10 years

CNMD has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$52.14 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 349.13M 382.38M 337.33M 365.38M 374.93M 405.84M 412.42M 404.06M 381.70M 408.33M
divided by
Revenue 694.29M 742.18M 694.74M 713.72M 725.08M 767.14M 762.70M 740.06M 719.17M 763.52M
Gross Margin 50.29% 51.52% 48.56% 51.19% 51.71% 52.90% 54.07% 54.60% 53.08% 53.48%

High Capital Intensity over the past 10 years

CNMD spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

299.24% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 20.91M 35.88M 21.44M 14.73M 17.55M 21.53M 18.45M 15.41M 15.01M 14.75M
divided by
Net Income 41.46M 44.56M 12.14M 30.35M 752,000.00 40.48M 35.94M 32.19M 30.50M 14.66M
Capital Expenditure Ratio 50.44% 80.52% 176.68% 48.55% 2,334.04% 53.19% 51.32% 47.87% 49.21% 100.61%

No Dividend History over the past 10 years

CNMD has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 28.99M 29.23M 29.14M 28.91M 28.63M 28.65M 28.11M 27.77M 27.86M 27.96M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 23.32 23.08 23.18 26.53 25.67 27.47 42.48 44.96 44.36 44.17
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

CNMD has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 28.99M 29.23M 29.14M 28.91M 28.63M 28.65M 28.11M 27.77M 27.86M 27.96M
Stock Bought Back - -0.81% 0.29% 0.80% 0.97% -0.07% 1.92% 1.24% -0.32% -0.38%
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