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 191 industry peers in the Health Care Equipment & Supplies industry. While CNMD belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on CNMD. These ratings could make CNMD a good candidate for value 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.
Each year in the past 5 years CNMD had a positive operating cash flow.
1.2 Ratios
CNMD has a Return On Assets of 5.74%. This is amongst the best in the industry. CNMD outperforms 86.39% of its industry peers.
Looking at the Return On Equity, with a value of 13.76%, CNMD belongs to the top of the industry, outperforming 89.01% of the companies in the same industry.
CNMD has a better Return On Invested Capital (8.33%) than 89.01% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CNMD is below the industry average of 7.68%.
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 has a better Profit Margin (10.13%) than 84.82% of its industry peers.
CNMD's Profit Margin has improved in the last couple of years.
The Operating Margin of CNMD (16.06%) is better than 86.91% of its industry peers.
In the last couple of years the Operating Margin of CNMD has grown nicely.
With a Gross Margin value of 56.08%, CNMD perfoms like the industry average, outperforming 51.31% of the companies in the same industry.
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
CNMD has more shares outstanding than it did 5 years ago.
CNMD has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.10 indicates that CNMD is not a great score, but indicates only limited risk for bankruptcy at the moment.
CNMD has a Altman-Z score of 2.10. This is in the better half of the industry: CNMD outperforms 64.40% of its industry peers.
The Debt to FCF ratio of CNMD is 5.89, which is a neutral value as it means it would take CNMD, 5.89 years of fcf income to pay off all of its debts.
CNMD has a better Debt to FCF ratio (5.89) than 78.53% of its industry peers.
A Debt/Equity ratio of 0.94 indicates that CNMD is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.94, CNMD is not doing good in the industry: 72.77% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 5.89 | ||
| Altman-Z | 2.1 |
ROIC/WACC1.01
WACC8.22%
2.3 Liquidity
CNMD has a Current Ratio of 2.30. This indicates that CNMD is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.30, CNMD is in line with its industry, outperforming 42.93% of the companies in the same industry.
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 72.77% 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.
The Earnings Per Share has been growing by 9.44% on average over the past years. This is quite good.
The Revenue has been growing slightly by 4.99% in the past year.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 12.26, CNMD is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of CNMD indicates a rather cheap valuation: CNMD is cheaper than 92.15% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.92, CNMD is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.53, the valuation of CNMD can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CNMD indicates a rather cheap valuation: CNMD is cheaper than 93.72% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.65, CNMD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.26 | ||
| Fwd PE | 11.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNMD is valued cheaper than 92.67% 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 95.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.25 | ||
| EV/EBITDA | 8.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of CNMD may justify a higher PE ratio.
PEG (NY)1.94
PEG (5Y)1.3
EPS Next 2Y9.41%
EPS Next 3Y10.15%
5. Dividend
5.1 Amount
CNMD has a Yearly Dividend Yield of 1.65%.
The stock price of CNMD dropped by -25.84% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
CNMD's Dividend Yield is rather good when compared to the industry average which is at 1.94. CNMD pays more dividend than 95.29% of the companies in the same industry.
CNMD's Dividend Yield is slightly below the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
5.2 History
The dividend of CNMD decreases each year by -0.01%.
CNMD has been paying a dividend for at least 10 years, so it has a reliable track record.
CNMD has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.01%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
CNMD pays out 18.62% of its income as dividend. This is a sustainable payout ratio.
DP18.62%
EPS Next 2Y9.41%
EPS Next 3Y10.15%
51
+1.29 (+2.6%)
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 Change0.23%
Ins Owners0.47%
Ins Owner Change1.06%
Market Cap1.58B
Analysts76.92
Price Target80.07 (57%)
Short Float %7.55%
Short Ratio4.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
Yearly Dividend0.8
Dividend Growth(5Y)-0.01%
DP18.62%
Div Incr Years0
Div Non Decr Years11
Ex-Date
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)0%
PT rev (3m)-3.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-22.48%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.26 | ||
| Fwd PE | 11.53 | ||
| P/S | 1.21 | ||
| P/FCF | 10.25 | ||
| P/OCF | 9.45 | ||
| P/B | 1.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.73 |
EPS(TTM)4.16
EY8.16%
EPS(NY)4.42
Fwd EY8.67%
FCF(TTM)4.98
FCFY9.76%
OCF(TTM)5.4
OCFY10.58%
SpS42.26
BVpS31.12
TBVpS-14.88
PEG (NY)1.94
PEG (5Y)1.3
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 | 2.1 |
F-Score8
WACC8.22%
ROIC/WACC1.01
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 Year40.13%
EBIT Next 3Y18.38%
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%