CONMED Corp (CNMD) stock analysis

P/E below its 5-year median

Conmed's P/E of 21.0 is below its own 5-year median of 25.5.

P/E below the industry

Conmed's P/E of 21.0 is below the Surgical, Medical, and Dental Instruments and Supplies median of 27.7.

EV/EBITDA below its 5-year median

Conmed's EV/EBITDA of 16.8 is below its 5-year median of 24.3.

P/B below the industry

Conmed's price-to-book of 1.43 is below the Surgical, Medical, and Dental Instruments and Supplies median of 3.22.

Trading below fair value

The share price of $50.77 is below our fair value estimate of $67.18.

Margin of safety over 20%

The price is 24.4% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 9.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings growth not accelerating

Net income grew 14.6% over the last twelve months, against a 5-year average of 37.7% a year.

Growing slower than the industry

Revenue grew 1.6% over the last twelve months; the Surgical, Medical, and Dental Instruments and Supplies median is 11.0%.

Guidance raised

Conmed raised its Twelve Months Ending December 31, 2026 Net Sales Growth, Organic Constant Currency outlook on Jul 29, 2026.

Gross margin improving

Gross margin was 57.6% over the last twelve months, against 54.2% a year earlier.

Return on equity under 15%

Return on equity was 7.1% over the last twelve months and averaged 5.1% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 5.2%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Conmed's return on equity of 7.1% is above the Surgical, Medical, and Dental Instruments and Supplies median of -31.3%.

Earnings grew over 5 years

Net income grew 37.7% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 5.4% over the last twelve months, against a 5-year average of 3.4%.

Net margin above the industry

Conmed's net margin of 5.4% is above the Surgical, Medical, and Dental Instruments and Supplies median of -14.1%.

High debt

Debt is 77.0% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 106% five years ago to 77.0%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 17.9% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 4.1 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.49 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.03; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Conmed has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.