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what it is
Conmed sells the tools surgeons use in operating rooms, especially for minimally invasive and orthopedic procedures.
how it gets paid
Last year Conmed made $1.4B in revenue. General Surgery single-use was the main engine at $0.73B, or 52% of sales.
why it's growing
Revenue grew 5.2% last year. Annual revenue was $1.4B, up 5.2% vs. prior year, and gross margin was 53.1% from SEC filings.
what just happened
Prior copy claimed $1.0B quarterly revenue—impossible vs ~$1.4B annual. The earnings mess is really about adjusted vs GAAP EPS and a wide consensus gap (~$0.54 vs ~$2.26 style prints)—open the release.
At a glance
B balance sheet — gets the job done, barely
55/100 earnings predictability — expect surprises
9.2x trailing p/e — the market's not buying it — or you found a deal
2.0% dividend yield — cash in your pocket every quarter
9.0% return on capital — nothing to write home about
xvary composite: 53/100 — below average
What they do
Conmed sells the tools surgeons use in operating rooms, especially for minimally invasive and orthopedic procedures.
Conmed wins by living inside the operating room. In 2024, 57% of sales came from General Surgery and 43% from Orthopedic Surgery, with improving trends in AirSeal and BioBrace called out in the latest company write-up. Single-use products (used once, then replaced, so hospitals reorder) make up 92% of General Surgery revenue and 78% of Orthopedic revenue, so once your hospital standardizes on the system, leaving is annoying and repeat orders keep coming.
How they make money
$1.4B
annual revenue · their business grew +5.2% last year
General Surgery single-use
$0.73B
General Surgery capital and service
$0.06B
Orthopedic Surgery single-use
$0.47B
Orthopedic Surgery capital and service
$0.13B
The products that matter
manufactures surgical devices
Surgical Devices
$1.4B revenue · entire business
it's the full $1.4B business, and it grew 5.2% last year. That's simple and slightly unforgiving. You get clarity, but you do not get a second growth engine to hide behind.
100% of revenue
Key numbers
56%
target gap
The published 18-month target is $64 versus $40.98 today, which tells you sentiment got hit harder than the long-term earnings model.
9.2x
trailing p/e
P/E → price-to-earnings ratio → how much you pay for each dollar of profit. At 9.2x, you are paying a low multiple for a business expected to earn $5.00 by fiscal 2027.
$853M
long-term debt
Debt equals 40% of capital, so the balance sheet is fine, not bulletproof.
7.5%
operating margin
Operating margin → profit from the core business before interest and taxes → a 7.5% margin leaves limited room for execution errors.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 45 / 100
- long-term debt $853M (40% of capital)
- net profit margin 14.0% — keeps 14 cents of every dollar in revenue
- return on equity 14% — $0.14 profit for every $1 investors have put in
B — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in CNMD 3 years ago → it's now worth $4,390.
The index would have given you $14,770.
source: institutional data · total return
What just happened
basis noise
Use ~$350M as a quarterly revenue order of magnitude (one-fourth of ~$1.4B annual)—not $1.0B. EPS debate: ~$0.54 vs ~$2.26 consensus reflects basis noise, not a second company.
Annual revenue was $1.4B, up 5.2% vs. prior year, and gross margin was 53.1% from SEC filings. The operating story improved in General Surgery and Orthopedics, but the earnings miss wrecked confidence.
~$350M
qtr revenue (approx.)
mixed
EPS basis
53.1%
gross margin
the number that mattered
The number that mattered was the 76.11% earnings miss versus consensus, because a cheap stock stays cheap when investors stop trusting the forecast.
-
conmed’s operational progress has continued, though investor sentiment has weakened materially.
-
third-quarter results showed improving sales trends across both general surgery and orthopedics, led by biobrace, airseal, and buffalo filter.gross margins remained healthy despite tariff pressure, and management narrowed its full-year guidance while reaffirming earnings targets.
-
even so, shares have fallen roughly 15% since our early november review as concerns around macroeconomic conditions and capital allocation weighed on the stock.the company made a notable shift in capital strategy, prioritizing share repurchases over dividends with a newly authorized $150 million buyback program. this reflects growing confidence in cash flow durability and a desire to align more closely with peers.
-
supply-chain execution continues to improve, orthopedic service levels are stabilizing, and recurring revenue platforms remain intact.the announced cfo transition adds some uncertainty, but the extended advisory period should help ensure continuity.
-
despite near-term pressure, the underlying story looks more stable than the stock suggests.operational efficiency initiatives are taking hold, product momentum remains solid, and leverage has begun to move in the right direction. for longer-term investors willing to tolerate volatility, the recent pullback may be creating a more favorable entry point than has been available in some time.
source: company earnings report, 2026
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What could go wrong
the #1 risk is procedure demand softening while the balance sheet still carries $853M of debt.
med
procedure volumes lose momentum
CNMD sells into surgical activity. If hospitals delay procedures or get tighter on purchasing, the effect shows up quickly in a company with one disclosed revenue bucket.
Revenue grew 5.2% last year and net margin was about 14% on this page’s health row—not razor-thin, but still not much cushion if volumes slip.
med
debt keeps the stock on a shorter leash
Long-term debt is $853M, equal to 40% of capital, against a market cap of about $1B. The business does not have infinite room for operational mistakes.
If growth stays modest, more of the story becomes debt management and less of it becomes upside.
med
earnings quality stays hard to trust
A 55/100 earnings predictability score already tells you results move around. The latest quarter reinforced it with revenue up 7% and earnings down 94% from a year ago.
Cheap multiples stay cheap when investors think next quarter's earnings power is still a moving target.
The bear case is not complicated: a $1.4B business growing 5.2% does not get much forgiveness when debt is $853M and recent earnings quality still looks uneven.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
revenue growth versus the 5.2% baseline
If sales cannot beat last year's 5.2% pace, the argument for a higher multiple gets thinner fast.
risk
debt trend and balance-sheet breathing room
$853M in long-term debt is manageable only if cash flow and margins stay steady.
calendar
the next earnings report
You want cleaner earnings quality, not just another quarter that beats on one line and disappoints on another.
trend
institutional selling streak
Two straight quarters of net selling do not settle the case, but a third would say skepticism is spreading.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts do not see a strong near-term signal either way.
risk profile
average
stability score 3 — this sits near the middle of the pack, not a bunker stock and not a train wreck.
chart momentum
below average
technical score 4 — price action is still arguing with the cheap-stock thesis.
earnings predictability
55 / 100
earnings predictability at 55 / 100 means you should expect more noise than you get with steadier medtech names.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 137 buyers vs. 145 sellers in 3q2025. total institutional holdings: 34.7M shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$35
$92
$41
current price
$64
target midpoint · +56% from current · top of bar range: $92 (+124% vs ~$41 — illustrative; use endpoints above)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
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