One-glance verdict
Undervalued
$109.15 our estimate vs market $47.68
Wall Street consensus: $45.50 (-58.3% lower than our fair-value estimate)
56% below our estimate, below the bear case
Fundamentals snapshot
CONMED Corporation
CNMD · NYQ · Healthcare · Medical Devices
Current price
$47.68
52-week range
$31.44 - $53.66
Market cap
$1.43B
Balance sheet
Stretched
3.30x Stretched
Net debt $796.92M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 1.6% last year.
- Reward Returns 5.5% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Insider ownership is only 0.4% (peer median: 4.3%).
What this company does
CONMED Corporation
CONMED Corporation makes and sells medical equipment that surgeons use during operations, especially for sports injuries and general surgeries. Their main income comes from selling these specialized tools directly to hospitals and surgery centers. This is important because it shows they are a key supplier for healthcare providers needing advanced surgical technology.
How the company got here
CONMED Corporation started in 1970 when Eugene Corasanti bought a small medical supply distributor in Utica, New York. Initially named Concor Enterprises, it was later renamed Consolidated Medical Equipment, Inc. The company's first product was a disposable ECG electrode, a pioneering move in the early days of disposable medical supplies. Over the years, CONMED grew through strategic acquisitions, expanding its product lines and market reach. A significant shift occurred in 2014 when Curt Hartman took over as CEO. The company went public in 1987, allowing it to raise capital for further expansion and acquisitions. CONMED's journey has been marked by a consistent focus on providing healthcare providers with tools to improve patient outcomes.
What it actually does
CONMED Corporation is a medical technology company that designs, manufactures, and sells a wide range of devices and equipment used in surgical procedures. Think of them as a supplier for hospitals and surgery centers, providing tools that surgeons use to perform operations. Their products are used in various medical specialties, aiming to help healthcare professionals perform procedures more effectively and improve patient recovery. CONMED's offerings span from specialized instruments for orthopedic surgeries to equipment used in general surgery and patient monitoring.
Orthopedic Surgery
This is CONMED's largest business segment, making up about 60% of its revenue. It focuses on products used in orthopedic surgery, which deals with the musculoskeletal system – bones, joints, ligaments, and tendons. CONMED provides tools for sports medicine injuries, such as those affecting the knee, hip, and shoulder, helping surgeons repair soft tissue injuries with implants and fixation devices like suture anchors. They also offer powered surgical instruments, which are specialized tools used in bone surgery, and implants for extremities like the foot and ankle.
General Surgery
This segment provides a variety of advanced surgical and endoscopic technologies used in general surgery. This includes products for minimally invasive procedures, which are surgeries performed through small incisions. Key offerings here are systems for insufflation (filling a body cavity with gas to improve visibility during surgery), smoke evacuation (removing surgical smoke generated during procedures), and electrosurgical solutions (using electric current to cut tissue or stop bleeding). This segment also includes advanced endoscopic technologies used in procedures like gastroenterology (procedures related to the digestive system) and pulmonology (procedures related to the lungs).
Patient Monitoring and EMS
This part of CONMED's business focuses on products used for monitoring patients, particularly in cardiac care and emergency medical services (EMS). Their offerings include a broad range of disposable medical electrodes, which are small sensors placed on the skin to measure electrical activity, such as heartbeats. They also provide other related items like medical sensors, IV stabilization dressings, and suction equipment. These products are essential for tracking a patient's vital signs and ensuring proper care during medical procedures or emergencies.
What management is betting on now
CONMED's strategy revolves around a "razor-and-blade" business model. This means they sell or lease capital equipment (the "razor") that then drives recurring sales of higher-margin, single-use disposable products (the "blades"). For example, they might sell a surgical instrument that can only be used with their specific disposable components. Management is focused on innovating within their core areas of orthopedic and general surgery, aiming to provide differentiated products that create strong relationships with healthcare providers. They are also strategically acquiring companies to expand their product portfolio and market reach, particularly in areas like sports medicine and advanced surgical technologies.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$47.78M
FY2024 Q4
$39.30M
FY2025 Q1
$37.76M
FY2025 Q2
$23.41M
FY2025 Q3
$48.50M
FY2025 Q4
$41.22M
FY2026 Q2
$44.74M
Revenue
$343.49M
Net income
$23.07M
Diluted EPS
0.77
Operating cash flow
$50.57M
Free cash flow
$44.74M
Fetching…
Sources
Revenue
$373.20M
Net income
$16.74M
Diluted EPS
0.54
Operating cash flow
$46.34M
Free cash flow
$41.22M
Fetching…
Sources
Revenue
$337.93M
Net income
$2.86M
Diluted EPS
0.09
Operating cash flow
$53.69M
Free cash flow
$48.50M
Fetching…
Sources
Revenue
$342.35M
Net income
$21.42M
Diluted EPS
0.69
Operating cash flow
$29.13M
Free cash flow
$23.41M
Fetching…
Sources
Revenue
$321.26M
Net income
$6.04M
Diluted EPS
0.19
Operating cash flow
$41.53M
Free cash flow
$37.76M
Fetching…
Sources
Revenue
$345.94M
Net income
$33.75M
Diluted EPS
1.09
Operating cash flow
$43.34M
Free cash flow
$39.30M
Fetching…
Sources
Revenue
$316.70M
Net income
$48.98M
Diluted EPS
1.57
Operating cash flow
$51.20M
Free cash flow
$47.78M
Fetching…
Sources
Is it cheap or expensive?
Fair value $109.15 vs current price $47.68
Wall Street consensus is the average analyst price target: $45.50 (-58.3% lower than our fair-value estimate).
Our most-likely fair value is $109.15 a share — about 128.9% above today's price of $47.68, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $796.9M. Interest coverage 3.3x.
Net debt
$796.92M
Interest coverage
3.30x
CONMED Corporation's profit covers its interest bill about 3.3 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
CNMD
BASELINE
CONMED Corporation
Total debt $834.25M Interest coverage 3.30x This is the baseline the peer rows are being compared against.
Total debt $604.02M Interest coverage -1.26x -100% vs CNMD This peer has almost no interest-payment cushion compared with CNMD.
Total debt $2.00B Interest coverage 0.21x -94% vs CNMD Carries about 15.8x less debt cushion than CNMD.
Total debt $407.97M Interest coverage 1.01x -70% vs CNMD Carries about 3.3x less debt cushion than CNMD.
Total debt $29.09M Interest coverage 371.93x +11,167% vs CNMD Carries about 112.7x more debt cushion than CNMD.
Total debt $820.12M Interest coverage 7.02x +113% vs CNMD Carries about 2.1x more debt cushion than CNMD.
What you should know
The case for and against CNMD
3 Rewards
1 Risk
Rewards
-
Revenue grew 1.6% last year.
-
Returns 5.5% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Insider ownership is only 0.4% (peer median: 4.3%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
26.64x
Forward P/E
9.97x
P/B
1.37x
P/S
1.04x
EV/EBITDA
9.78x
PEG ratio
1.84x
Profitability
How much profit each dollar creates
Gross margin
55.6%
Operating margin
14.6%
Net margin
4.1%
ROE
5.5%
ROA
4.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.80x
Current ratio
1.48x
Quick ratio
0.61x
Total debt
$834.25M
Total cash
$37.33M
Growth
How the business has been compounding
Revenue TTM
$1.40B
Revenue 5Y CAGR
8.0%
EPS TTM
1.79
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$179.72M
Free CF TTM
$150.88M
FCF margin
10.8%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
10.8%
Last ex-div date
2025-09-15