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1. Company Snapshot

1.a. Company Description

CONMED Corporation, a medical technology company, develops, manufactures, and sells surgical devices and related equipment for surgical procedures worldwide.It offers orthopedic surgery products, including TruShot with Y-Knot All-In-One Soft Tissue Fixation System, Y-knot All-Suture Anchors, and PopLok Knotless Suture Anchors, which provide unique clinical solutions to orthopedic surgeons for the repair of soft tissue injuries, as well as supporting products that enable surgeons to perform minimally invasive sports medicine surgeries.The company markets orthopedic surgery products under the Hall, CONMED Linvatec, Concept, and Shutt brands.


It also offers general surgery products, such as clinical insufflation, smoke evacuation, electrosurgical, and endomechanical products; and endoscopic technologies, including diagnostic and therapeutic products for use in gastroenterology procedures, and products for the treatment of diseases of the biliary structures, as well as cardiac monitoring products comprising ECG and EEG electrodes, and cardiac defibrillation pads.The company markets its products directly to hospitals, surgery centers, and other healthcare institutions, as well as through medical specialty distributors.CONMED Corporation was incorporated in 1970 and is headquartered in Largo, Florida.

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1.b. Last Insights on CNMD

CONMED Corporation's recent performance was negatively impacted by sharp contractions in gross and operating margins, despite beating third-quarter 2025 earnings and revenue estimates. The company's Q3 earnings call highlighted a 6.7% year-over-year sales increase, but diluted net earnings per share (GAAP) were $0.09. Analysts have a "Hold" rating on the stock, with one sell, four hold, and one buy rating. The company's growth drivers, such as AirSeal and BioBrace, are offsetting tariffs and supply risks. However, margin contraction remains a concern.

1.c. Company Highlights

2. CONMED's Q3 FY2025 Earnings: A Strong Performance with Strategic Review Underway

CONMED reported total sales of $338 million for the third quarter, representing a 6.7% growth year-over-year and 6.3% growth in constant currency. The company's adjusted net income for the quarter was $33.4 million, an increase of 2.2% year-over-year, excluding special items. Adjusted diluted earnings per share came in at $1.08, beating analyst estimates of $1.05. The adjusted gross margin for the third quarter was 56.1%, ahead of projection due to positive sales mix.

Publication Date: Nov -16

📋 Highlights
  • Q3 Sales Growth:: $338 million revenue, up 6.7% YoY and 6.3% in constant currency.
  • Adjusted EPS Increase:: $1.08 per share, a 2.9% rise compared to the prior year.
  • Share Repurchase Program:: $150 million authorization, replacing dividend to enhance capital efficiency.
  • Q4 Guidance:: Revenue projected between $363–$370 million, with mid-single-digit constant currency growth.
  • Gross Margin Expansion:: 56.1% adjusted gross margin, driven by favorable sales mix and operational efficiency.

Segment Performance

The company's performance was led by general surgery and orthopedics, with BioBrace and Foot and Ankle driving growth. As mentioned by Patrick Beyer, the company is seeing a strong opportunity in the U.S. laparoscopic area, with over 2 million procedures done laparoscopically. The growth in orthopedics, specifically with BioBrace, is a great growth platform in both Sports Medicine and Foot and Ankle portfolios.

Strategic Review and Capital Allocation

The company has initiated a comprehensive strategic review of its portfolio and operations, assessing each product offering through the lens of long-term return on invested capital. As part of its capital allocation strategy, CONMED has authorized a new $150 million share repurchase program, suspending the dividend and prioritizing share repurchases. This change enhances financial flexibility and supports disciplined capital deployment aligned with long-term shareholder value creation.

Outlook and Valuation

The company guided Q4 revenue between $363 million and $370 million, representing mid-single-digit constant currency growth. Analysts estimate next year's revenue growth at 5.2%. With a P/E Ratio of 11.81 and an EV/EBITDA of 8.78, the stock appears reasonably valued. The company's return on invested capital (ROIC) is 6.78%, and return on equity (ROE) is 11.37%, indicating a decent profitability profile.

Operational Efficiency and Tariffs

Todd Garner mentioned that the company has made improvements in operational efficiency and expects to save tens of millions of dollars, but new tariffs will work against that. The company has been accurate in its projections, with tariffs going into manufacturing variances and then getting released in the external P&L.

3. NewsRoom

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CONMED Corporation Announces Strategic Exit from Gastroenterology Product Lines

Dec -05

Source: businesswire.com

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Here's Why You Should Add CONMED Stock to Your Portfolio Now

Dec -04

Source: zacks.com

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5 Value Stocks With Exciting EV-to-EBITDA Ratios to Scoop Up

Dec -04

Source: zacks.com

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Fisher Asset Management LLC Has $18.92 Million Holdings in CONMED Corporation $CNMD

Dec -04

Source: defenseworld.net

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CNMD vs. MMSI: Which Stock Is the Better Value Option?

Nov -24

Source: zacks.com

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Down 16.9% in 4 Weeks, Here's Why Conmed (CNMD) Looks Ripe for a Turnaround

Nov -20

Source: zacks.com

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Wall Street Analysts Think Conmed (CNMD) Could Surge 25.54%: Read This Before Placing a Bet

Nov -10

Source: zacks.com

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CNMD or MMSI: Which Is the Better Value Stock Right Now?

Nov -07

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.93%)

6. Segments

General Surgery

Expected Growth: 6.5%

CONMED's General Surgery segment growth of 6.5% is driven by increasing demand for minimally invasive procedures, adoption of advanced surgical technologies, and expansion into emerging markets. Additionally, the company's strategic acquisitions and investments in research and development have enhanced its product portfolio, further contributing to growth.

Orthopedic Surgery

Expected Growth: 7.5%

CONMED Corporation's Orthopedic Surgery segment growth of 7.5% is driven by increasing demand for minimally invasive procedures, advancements in arthroscopy and sports medicine, and a growing elderly population requiring joint replacements and osteoarthritis treatments. Additionally, the company's strategic acquisitions and investments in innovative technologies have expanded its product portfolio and enhanced its market presence.

7. Detailed Products

Orthopedic Implants

CONMED Corporation offers a range of orthopedic implants, including hip and knee replacements, shoulder and elbow implants, and trauma implants.

Surgical Visualization

CONMED Corporation provides surgical visualization systems, including cameras, monitors, and light sources, for minimally invasive surgeries.

Electrosurgical Units

CONMED Corporation offers electrosurgical units (ESUs) for cutting, coagulation, and bipolar electrosurgery.

Endoscopic Instruments

CONMED Corporation provides a range of endoscopic instruments, including graspers, dissectors, and retractors, for minimally invasive surgeries.

Surgical Sutures and Staples

CONMED Corporation offers a range of surgical sutures and staples for wound closure and tissue repair.

Patient Monitoring

CONMED Corporation provides patient monitoring systems, including vital sign monitors and anesthesia monitors.

Orthopedic Surgical Instruments

CONMED Corporation offers a range of orthopedic surgical instruments, including implants, instruments, and power tools.

8. CONMED Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

CONMED Corporation's products are specialized medical equipment, which limits the availability of substitutes. However, the company faces competition from other medical device manufacturers, which could lead to some substitution.

Bargaining Power Of Customers

CONMED Corporation's customers are primarily hospitals and medical professionals, who have limited bargaining power due to the specialized nature of the company's products.

Bargaining Power Of Suppliers

CONMED Corporation relies on a few key suppliers for raw materials and components, which gives them some bargaining power. However, the company's size and reputation help to mitigate this risk.

Threat Of New Entrants

The medical device industry has high barriers to entry, including regulatory hurdles and significant capital requirements, which limits the threat of new entrants.

Intensity Of Rivalry

The medical device industry is highly competitive, with several established players competing for market share. CONMED Corporation faces intense competition from companies such as Medtronic and Stryker.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 54.01%
Debt Cost 5.03%
Equity Weight 45.99%
Equity Cost 10.80%
WACC 7.68%
Leverage 117.44%

11. Quality Control: CONMED Corporation passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Insulet

A-Score: 5.1/10

Value: 0.2

Growth: 9.6

Quality: 6.5

Yield: 0.0

Momentum: 8.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Inari Medical

A-Score: 5.1/10

Value: 6.0

Growth: 8.0

Quality: 4.5

Yield: 0.0

Momentum: 10.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Penumbra

A-Score: 5.0/10

Value: 0.4

Growth: 8.2

Quality: 7.3

Yield: 0.0

Momentum: 8.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
CONMED

A-Score: 4.8/10

Value: 6.4

Growth: 6.4

Quality: 5.9

Yield: 3.0

Momentum: 2.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
iRhythm Technologies

A-Score: 4.6/10

Value: 4.2

Growth: 6.1

Quality: 3.1

Yield: 0.0

Momentum: 10.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Bio-Rad

A-Score: 3.8/10

Value: 6.4

Growth: 2.3

Quality: 5.9

Yield: 0.0

Momentum: 3.0

Volatility: 5.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

40.07$

Current Price

40.07$

Potential

-0.00%

Expected Cash-Flows