CONMED CORP (CNMD) Stock Fundamental Analysis
NYSE:CNMD - New York Stock Exchange, Inc. - US2074101013 - Common Stock - Currency: USD
CNMD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 187 industry peers in the Health Care Equipment & Supplies industry. While CNMD has a great profitability rating, there are some minor concerns on its financial health. CNMD may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, CNMD could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
CNMD had positive earnings in the past year.
In the past year CNMD had a positive cash flow from operations.
Of the past 5 years CNMD 4 years were profitable.
Each year in the past 5 years CNMD had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.17%, CNMD belongs to the top of the industry, outperforming 85.03% of the companies in the same industry.
With an excellent Return On Equity value of 12.15%, CNMD belongs to the best of the industry, outperforming 88.77% of the companies in the same industry.
CNMD has a Return On Invested Capital of 7.67%. This is amongst the best in the industry. CNMD outperforms 85.56% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CNMD is below the industry average of 7.89%.
The last Return On Invested Capital (7.67%) for CNMD is above the 3 year average (5.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.17% | ||
| ROE | 12.15% | ||
| ROIC | 7.67% |
ROA(3y)1.68%
ROA(5y)1.82%
ROE(3y)3.56%
ROE(5y)3.99%
ROIC(3y)5.34%
ROIC(5y)4.97%
1.3 Margins
With an excellent Profit Margin value of 9.02%, CNMD belongs to the best of the industry, outperforming 83.42% of the companies in the same industry.
In the last couple of years the Profit Margin of CNMD has grown nicely.
CNMD has a Operating Margin of 14.58%. This is amongst the best in the industry. CNMD outperforms 85.03% of its industry peers.
CNMD's Operating Margin has improved in the last couple of years.
CNMD has a Gross Margin (56.14%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CNMD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.58% | ||
| PM (TTM) | 9.02% | ||
| GM | 56.14% |
OM growth 3Y13.68%
OM growth 5Y9.55%
PM growth 3Y17.89%
PM growth 5Y27.61%
GM growth 3Y-0.07%
GM growth 5Y0.25%
2. Health
2.1 Basic Checks
CNMD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
CNMD has more shares outstanding than it did 1 year ago.
The number of shares outstanding for CNMD has been increased compared to 5 years ago.
The debt/assets ratio for CNMD has been reduced compared to a year ago.
2.2 Solvency
CNMD has an Altman-Z score of 2.10. This is not the best score and indicates that CNMD is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of CNMD (2.10) is better than 60.96% of its industry peers.
The Debt to FCF ratio of CNMD is 5.42, which is a neutral value as it means it would take CNMD, 5.42 years of fcf income to pay off all of its debts.
CNMD has a Debt to FCF ratio of 5.42. This is amongst the best in the industry. CNMD outperforms 81.28% of its industry peers.
CNMD has a Debt/Equity ratio of 0.91. This is a neutral value indicating CNMD is somewhat dependend on debt financing.
CNMD has a worse Debt to Equity ratio (0.91) than 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 5.42 | ||
| Altman-Z | 2.1 |
ROIC/WACC1.14
WACC6.73%
2.3 Liquidity
CNMD has a Current Ratio of 2.26. This indicates that CNMD is financially healthy and has no problem in meeting its short term obligations.
CNMD has a Current ratio (2.26) which is in line with its industry peers.
CNMD has a Quick Ratio of 1.00. This is a normal value and indicates that CNMD is financially healthy and should not expect problems in meeting its short term obligations.
CNMD's Quick ratio of 1.00 is on the low side compared to the rest of the industry. CNMD is outperformed by 75.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.67% over the past year.
The Earnings Per Share has been growing by 9.44% on average over the past years. This is quite good.
CNMD shows a small growth in Revenue. In the last year, the Revenue has grown by 4.31%.
Measured over the past years, CNMD shows a small growth in Revenue. The Revenue has been growing by 6.47% on average per year.
EPS 1Y (TTM)20.67%
EPS 3Y9.03%
EPS 5Y9.44%
EPS Q2Q%20.25%
Revenue 1Y (TTM)4.31%
Revenue growth 3Y8.95%
Revenue growth 5Y6.47%
Sales Q2Q%2.88%
3.2 Future
Based on estimates for the next years, CNMD will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.55% on average per year.
CNMD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.36% yearly.
EPS Next Y7.76%
EPS Next 2Y7.54%
EPS Next 3Y8.55%
EPS Next 5YN/A
Revenue Next Year4.59%
Revenue Next 2Y5.1%
Revenue Next 3Y5.36%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.59, the valuation of CNMD can be described as very reasonable.
92.51% of the companies in the same industry are more expensive than CNMD, based on the Price/Earnings ratio.
CNMD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.41.
Based on the Price/Forward Earnings ratio of 10.41, the valuation of CNMD can be described as reasonable.
Based on the Price/Forward Earnings ratio, CNMD is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 35.19. CNMD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.59 | ||
| Fwd PE | 10.41 |
4.2 Price Multiples
CNMD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CNMD is cheaper than 92.51% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CNMD indicates a rather cheap valuation: CNMD is cheaper than 96.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.41 | ||
| EV/EBITDA | 9.26 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CNMD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.49
PEG (5Y)1.23
EPS Next 2Y7.54%
EPS Next 3Y8.55%
5. Dividend
5.1 Amount
CNMD has a Yearly Dividend Yield of 1.49%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.75, CNMD pays a better dividend. On top of this CNMD pays more dividend than 95.72% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.35, CNMD is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
5.2 History
The dividend of CNMD decreases each year by -0.01%.
CNMD has paid a dividend for at least 10 years, which is a reliable track record.
CNMD has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-0.01%
Div Incr Years0
Div Non Decr Years12
5.3 Sustainability
CNMD pays out 20.78% of its income as dividend. This is a sustainable payout ratio.
DP20.78%
EPS Next 2Y7.54%
EPS Next 3Y8.55%
50.06
-1.21 (-2.36%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners117.42%
Inst Owner Change0%
Ins Owners0.28%
Ins Owner Change-0.04%
Market Cap1.55B
Analysts73.33
Price Target70.13 (40.09%)
Short Float %7.74%
Short Ratio5.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
Yearly Dividend0.8
Dividend Growth(5Y)-0.01%
DP20.78%
Div Incr Years0
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.01%
Min EPS beat(2)9.23%
Max EPS beat(2)14.78%
EPS beat(4)4
Avg EPS beat(4)8.28%
Min EPS beat(4)3.6%
Max EPS beat(4)14.78%
EPS beat(8)7
Avg EPS beat(8)5.05%
EPS beat(12)9
Avg EPS beat(12)-0.48%
EPS beat(16)13
Avg EPS beat(16)1.51%
Revenue beat(2)1
Avg Revenue beat(2)-0.02%
Min Revenue beat(2)-0.54%
Max Revenue beat(2)0.51%
Revenue beat(4)1
Avg Revenue beat(4)-1.12%
Min Revenue beat(4)-2.4%
Max Revenue beat(4)0.51%
Revenue beat(8)2
Avg Revenue beat(8)-0.9%
Revenue beat(12)3
Avg Revenue beat(12)-1.84%
Revenue beat(16)5
Avg Revenue beat(16)-1.73%
PT rev (1m)2.31%
PT rev (3m)-12.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.67%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)1.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.59 | ||
| Fwd PE | 10.41 | ||
| P/S | 1.18 | ||
| P/FCF | 9.41 | ||
| P/OCF | 8.63 | ||
| P/B | 1.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.26 |
EPS(TTM)4.32
EY8.63%
EPS(NY)4.81
Fwd EY9.61%
FCF(TTM)5.32
FCFY10.62%
OCF(TTM)5.8
OCFY11.58%
SpS42.53
BVpS31.6
TBVpS-14.15
PEG (NY)1.49
PEG (5Y)1.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.17% | ||
| ROE | 12.15% | ||
| ROCE | 9.52% | ||
| ROIC | 7.67% | ||
| ROICexc | 7.8% | ||
| ROICexgc | 27.41% | ||
| OM | 14.58% | ||
| PM (TTM) | 9.02% | ||
| GM | 56.14% | ||
| FCFM | 12.5% |
ROA(3y)1.68%
ROA(5y)1.82%
ROE(3y)3.56%
ROE(5y)3.99%
ROIC(3y)5.34%
ROIC(5y)4.97%
ROICexc(3y)5.41%
ROICexc(5y)5.04%
ROICexgc(3y)20.03%
ROICexgc(5y)18.26%
ROCE(3y)6.64%
ROCE(5y)6.18%
ROICexcg growth 3Y14.62%
ROICexcg growth 5Y8.81%
ROICexc growth 3Y13.67%
ROICexc growth 5Y10.96%
OM growth 3Y13.68%
OM growth 5Y9.55%
PM growth 3Y17.89%
PM growth 5Y27.61%
GM growth 3Y-0.07%
GM growth 5Y0.25%
F-Score8
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 5.42 | ||
| Debt/EBITDA | 3.38 | ||
| Cap/Depr | 20.57% | ||
| Cap/Sales | 1.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.96% | ||
| Profit Quality | 138.57% | ||
| Current Ratio | 2.26 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 2.1 |
F-Score8
WACC6.73%
ROIC/WACC1.14
Cap/Depr(3y)25.34%
Cap/Depr(5y)23%
Cap/Sales(3y)1.54%
Cap/Sales(5y)1.52%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)20.67%
EPS 3Y9.03%
EPS 5Y9.44%
EPS Q2Q%20.25%
EPS Next Y7.76%
EPS Next 2Y7.54%
EPS Next 3Y8.55%
EPS Next 5YN/A
Revenue 1Y (TTM)4.31%
Revenue growth 3Y8.95%
Revenue growth 5Y6.47%
Sales Q2Q%2.88%
Revenue Next Year4.59%
Revenue Next 2Y5.1%
Revenue Next 3Y5.36%
Revenue Next 5YN/A
EBIT growth 1Y28.49%
EBIT growth 3Y23.86%
EBIT growth 5Y16.64%
EBIT Next Year41.12%
EBIT Next 3Y17.55%
EBIT Next 5YN/A
FCF growth 1Y2284.83%
FCF growth 3Y16.67%
FCF growth 5Y15.46%
OCF growth 1Y512.22%
OCF growth 3Y14.3%
OCF growth 5Y11.92%