CONMED CORP (CNMD) Stock Fundamental Analysis
NYSE:CNMD - New York Stock Exchange, Inc. - US2074101013 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to CNMD. CNMD was compared to 190 industry peers in the Health Care Equipment & Supplies industry. CNMD scores excellent on profitability, but there are some minor concerns on its financial health. CNMD scores decently on growth, while it is valued quite cheap. This could make an interesting combination. CNMD also has an excellent dividend rating. This makes CNMD very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
CNMD had positive earnings in the past year.
CNMD had a positive operating cash flow in the past year.
Of the past 5 years CNMD 4 years were profitable.
In the past 5 years CNMD always reported a positive cash flow from operatings.
1.2 Ratios
CNMD has a better Return On Assets (5.74%) than 86.17% of its industry peers.
CNMD's Return On Equity of 13.76% is amongst the best of the industry. CNMD outperforms 88.30% of its industry peers.
The Return On Invested Capital of CNMD (8.33%) is better than 87.23% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CNMD is below the industry average of 8.19%.
The last Return On Invested Capital (8.33%) for CNMD is above the 3 year average (5.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.74% | ||
| ROE | 13.76% | ||
| ROIC | 8.33% |
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
CNMD's Profit Margin of 10.13% is amongst the best of the industry. CNMD outperforms 85.11% of its industry peers.
In the last couple of years the Profit Margin of CNMD has grown nicely.
CNMD has a Operating Margin of 16.06%. This is amongst the best in the industry. CNMD outperforms 87.23% of its industry peers.
In the last couple of years the Operating Margin of CNMD has grown nicely.
CNMD has a Gross Margin of 56.08%. This is comparable to the rest of the industry: CNMD outperforms 50.00% of its industry peers.
CNMD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.06% | ||
| PM (TTM) | 10.13% | ||
| GM | 56.08% |
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.
Compared to 1 year ago, CNMD has more shares outstanding
Compared to 5 years ago, CNMD has more shares outstanding
The debt/assets ratio for CNMD has been reduced compared to a year ago.
2.2 Solvency
CNMD has an Altman-Z score of 2.24. 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 (2.24) is better than 61.70% of its industry peers.
CNMD has a debt to FCF ratio of 5.89. This is a neutral value as CNMD would need 5.89 years to pay back of all of its debts.
CNMD has a better Debt to FCF ratio (5.89) than 77.13% of its industry peers.
A Debt/Equity ratio of 0.94 indicates that CNMD is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.94, CNMD is doing worse than 78.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 5.89 | ||
| Altman-Z | 2.24 |
ROIC/WACC1.05
WACC7.91%
2.3 Liquidity
A Current Ratio of 2.30 indicates that CNMD has no problem at all paying its short term obligations.
CNMD's Current ratio of 2.30 is in line compared to the rest of the industry. CNMD outperforms 41.49% of its industry peers.
A Quick Ratio of 1.05 indicates that CNMD should not have too much problems paying its short term obligations.
The Quick ratio of CNMD (1.05) is worse than 75.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.58% over the past year.
Measured over the past years, CNMD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.44% on average per year.
CNMD shows a small growth in Revenue. In the last year, the Revenue has grown by 4.99%.
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)20.58%
EPS 3Y9.03%
EPS 5Y9.44%
EPS Q2Q%26.42%
Revenue 1Y (TTM)4.99%
Revenue growth 3Y8.95%
Revenue growth 5Y6.47%
Sales Q2Q%5.78%
3.2 Future
CNMD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.15% yearly.
CNMD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.45% yearly.
EPS Next Y6.33%
EPS Next 2Y9.41%
EPS Next 3Y10.15%
EPS Next 5YN/A
Revenue Next Year4.29%
Revenue Next 2Y4.96%
Revenue Next 3Y5.45%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.69 indicates a correct valuation of CNMD.
Based on the Price/Earnings ratio, CNMD is valued cheaply inside the industry as 90.96% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CNMD to the average of the S&P500 Index (29.63), we can say CNMD is valued rather cheaply.
A Price/Forward Earnings ratio of 13.82 indicates a correct valuation of CNMD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CNMD indicates a rather cheap valuation: CNMD is cheaper than 89.89% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. CNMD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.69 | ||
| Fwd PE | 13.82 |
4.2 Price Multiples
CNMD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CNMD is cheaper than 91.49% of the companies in the same industry.
94.15% of the companies in the same industry are more expensive than CNMD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.27 | ||
| EV/EBITDA | 9.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CNMD does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of CNMD may justify a higher PE ratio.
PEG (NY)2.32
PEG (5Y)1.56
EPS Next 2Y9.41%
EPS Next 3Y10.15%
5. Dividend
5.1 Amount
CNMD has a Yearly Dividend Yield of 1.30%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.67, CNMD pays a better dividend. On top of this CNMD pays more dividend than 95.21% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, CNMD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
5.2 History
The dividend of CNMD has a limited annual growth rate of 0.03%.
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)0.03%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
18.62% of the earnings are spent on dividend by CNMD. This is a low number and sustainable payout ratio.
CNMD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP18.62%
EPS Next 2Y9.41%
EPS Next 3Y10.15%
61.13
-0.18 (-0.29%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners117.19%
Inst Owner Change-93.02%
Ins Owners0.47%
Ins Owner Change1.04%
Market Cap1.89B
Analysts78.46
Price Target80.07 (30.98%)
Short Float %8.31%
Short Ratio5.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
Yearly Dividend0.8
Dividend Growth(5Y)0.03%
DP18.62%
Div Incr Years0
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.42%
Min EPS beat(2)3.6%
Max EPS beat(2)9.23%
EPS beat(4)4
Avg EPS beat(4)5.81%
Min EPS beat(4)3.6%
Max EPS beat(4)9.23%
EPS beat(8)7
Avg EPS beat(8)4.22%
EPS beat(12)9
Avg EPS beat(12)-0.78%
EPS beat(16)13
Avg EPS beat(16)3.18%
Revenue beat(2)0
Avg Revenue beat(2)-1.47%
Min Revenue beat(2)-2.4%
Max Revenue beat(2)-0.54%
Revenue beat(4)0
Avg Revenue beat(4)-1.29%
Min Revenue beat(4)-2.4%
Max Revenue beat(4)-0.2%
Revenue beat(8)2
Avg Revenue beat(8)0.12%
Revenue beat(12)3
Avg Revenue beat(12)-1.82%
Revenue beat(16)5
Avg Revenue beat(16)-1.44%
PT rev (1m)-3.26%
PT rev (3m)-6.23%
EPS NQ rev (1m)-22.48%
EPS NQ rev (3m)-25.03%
EPS NY rev (1m)-10.03%
EPS NY rev (3m)-10.38%
Revenue NQ rev (1m)-5.12%
Revenue NQ rev (3m)-6.61%
Revenue NY rev (1m)-3.01%
Revenue NY rev (3m)-2.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.69 | ||
| Fwd PE | 13.82 | ||
| P/S | 1.44 | ||
| P/FCF | 12.27 | ||
| P/OCF | 11.31 | ||
| P/B | 1.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.83 |
EPS(TTM)4.16
EY6.81%
EPS(NY)4.42
Fwd EY7.24%
FCF(TTM)4.98
FCFY8.15%
OCF(TTM)5.41
OCFY8.84%
SpS42.31
BVpS31.16
TBVpS-14.9
PEG (NY)2.32
PEG (5Y)1.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.74% | ||
| ROE | 13.76% | ||
| ROCE | 10.35% | ||
| ROIC | 8.33% | ||
| ROICexc | 8.43% | ||
| ROICexgc | 29.1% | ||
| OM | 16.06% | ||
| PM (TTM) | 10.13% | ||
| GM | 56.08% | ||
| FCFM | 11.77% |
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 | 0.94 | ||
| Debt/FCF | 5.89 | ||
| Debt/EBITDA | 3.21 | ||
| Cap/Depr | 18.21% | ||
| Cap/Sales | 1% | ||
| Interest Coverage | 6.43 | ||
| Cash Conversion | 59.25% | ||
| Profit Quality | 116.21% | ||
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 2.24 |
F-Score8
WACC7.91%
ROIC/WACC1.05
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)20.58%
EPS 3Y9.03%
EPS 5Y9.44%
EPS Q2Q%26.42%
EPS Next Y6.33%
EPS Next 2Y9.41%
EPS Next 3Y10.15%
EPS Next 5YN/A
Revenue 1Y (TTM)4.99%
Revenue growth 3Y8.95%
Revenue growth 5Y6.47%
Sales Q2Q%5.78%
Revenue Next Year4.29%
Revenue Next 2Y4.96%
Revenue Next 3Y5.45%
Revenue Next 5YN/A
EBIT growth 1Y71.03%
EBIT growth 3Y23.86%
EBIT growth 5Y16.64%
EBIT Next Year41.98%
EBIT Next 3Y20.54%
EBIT Next 5YN/A
FCF growth 1Y44.74%
FCF growth 3Y16.67%
FCF growth 5Y15.46%
OCF growth 1Y33.2%
OCF growth 3Y14.3%
OCF growth 5Y11.92%