CONMED CORP (CNMD) Stock Fundamental Analysis
NYSE:CNMD - New York Stock Exchange, Inc. - US2074101013 - Common Stock - Currency: USD
Overall CNMD gets a fundamental rating of 6 out of 10. We evaluated CNMD against 189 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 would make CNMD suitable 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.
CNMD had positive earnings in 4 of the past 5 years.
In the past 5 years CNMD always reported a positive cash flow from operatings.
1.2 Ratios
CNMD's Return On Assets of 5.17% is amongst the best of the industry. CNMD outperforms 85.19% of its industry peers.
CNMD has a Return On Equity of 12.15%. This is amongst the best in the industry. CNMD outperforms 88.36% of its industry peers.
CNMD's Return On Invested Capital of 7.67% is amongst the best of the industry. CNMD outperforms 86.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CNMD is below the industry average of 7.87%.
The 3 year average ROIC (5.34%) for CNMD is below the current ROIC(7.67%), indicating increased profibility in the last year.
| 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
CNMD has a Profit Margin of 9.02%. This is amongst the best in the industry. CNMD outperforms 82.54% of its industry peers.
CNMD's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 14.58%, CNMD belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
CNMD's Operating Margin has improved in the last couple of years.
The Gross Margin of CNMD (56.14%) 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CNMD is still creating some value.
CNMD has more shares outstanding than it did 1 year ago.
CNMD has more shares outstanding than it did 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 2.16. 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.
CNMD's Altman-Z score of 2.16 is fine compared to the rest of the industry. CNMD outperforms 63.49% 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 better Debt to FCF ratio (5.42) than 80.42% 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's Debt to Equity ratio of 0.91 is on the low side compared to the rest of the industry. CNMD is outperformed by 74.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 5.42 | ||
| Altman-Z | 2.16 |
ROIC/WACC1.11
WACC6.9%
2.3 Liquidity
A Current Ratio of 2.26 indicates that CNMD has no problem at all paying its short term obligations.
The Current ratio of CNMD (2.26) is comparable to the rest of the industry.
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 75.66% 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.
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.
The Revenue has been growing slightly by 4.31% in the past year.
The Revenue has been growing slightly by 6.47% on average over the past years.
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 8.82% on average per year.
Based on estimates for the next years, CNMD will show a small growth in Revenue. The Revenue will grow by 5.31% on average per year.
EPS Next Y8.09%
EPS Next 2Y7.74%
EPS Next 3Y8.82%
EPS Next 5YN/A
Revenue Next Year4.59%
Revenue Next 2Y5.1%
Revenue Next 3Y5.31%
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
With a Price/Earnings ratio of 12.82, 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 89.42% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.82, CNMD is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.47, the valuation of CNMD can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CNMD indicates a rather cheap valuation: CNMD is cheaper than 88.36% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CNMD to the average of the S&P500 Index (21.76), we can say CNMD is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.82 | ||
| Fwd PE | 11.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNMD is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
CNMD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CNMD is cheaper than 96.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.41 | ||
| EV/EBITDA | 9.81 |
4.3 Compensation for Growth
CNMD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of CNMD may justify a higher PE ratio.
PEG (NY)1.59
PEG (5Y)1.36
EPS Next 2Y7.74%
EPS Next 3Y8.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.34%, CNMD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.83, CNMD pays a better dividend. On top of this CNMD pays more dividend than 95.24% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, CNMD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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 Years11
5.3 Sustainability
20.78% of the earnings are spent on dividend by CNMD. This is a low number and sustainable payout ratio.
DP20.78%
EPS Next 2Y7.74%
EPS Next 3Y8.82%
55.4
-0.66 (-1.18%)
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-0.11%
Ins Owners0.47%
Ins Owner Change-0.56%
Market Cap1.71B
Analysts73.85
Price Target66.47 (19.98%)
Short Float %7.9%
Short Ratio4.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Yearly Dividend0.8
Dividend Growth(5Y)-0.01%
DP20.78%
Div Incr Years0
Div Non Decr Years11
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)-16.99%
PT rev (3m)-18.98%
EPS NQ rev (1m)7.93%
EPS NQ rev (3m)7.93%
EPS NY rev (1m)1.65%
EPS NY rev (3m)1.65%
Revenue NQ rev (1m)-2.03%
Revenue NQ rev (3m)-2.03%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)-2.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.82 | ||
| Fwd PE | 11.47 | ||
| P/S | 1.3 | ||
| P/FCF | 10.41 | ||
| P/OCF | 9.55 | ||
| P/B | 1.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.81 |
EPS(TTM)4.32
EY7.8%
EPS(NY)4.83
Fwd EY8.72%
FCF(TTM)5.32
FCFY9.6%
OCF(TTM)5.8
OCFY10.47%
SpS42.55
BVpS31.61
TBVpS-14.16
PEG (NY)1.59
PEG (5Y)1.36
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 | 2.16 |
F-Score8
WACC6.9%
ROIC/WACC1.11
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 Y8.09%
EPS Next 2Y7.74%
EPS Next 3Y8.82%
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 3Y5.31%
Revenue Next 5YN/A
EBIT growth 1Y28.49%
EBIT growth 3Y23.86%
EBIT growth 5Y16.64%
EBIT Next Year40.13%
EBIT Next 3Y18.38%
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%