December 28, 2023
Top 10 Stock CONMED Buy Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View CONMED Buy

360 METRICS	December 28, 2023
VALUE
VALUE	67
GROWTH
GROWTH	79
SAFETY
SAFETY	1
SENTIMENT
SENTIMENT	56
360° VIEW
360° VIEW	54

ANALYSIS: With an Obermatt 360° View of 54 (better than 54% compared with alternatives), overall professional sentiment and financial characteristics for the stock CONMED are above average. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for CONMED. The consolidated Value Rank has an attractive rank of 67, which means that the share price of CONMED is on the lower side compared with the typical size in indicators such as revenues, profits, and invested capital. This means the stock price is lower than for 67% of alternative stocks in the same industry. The consolidated Growth Rank has a good rank of 79, which means that the company experiences above-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth, as well as stock returns. In addition, professional market sentiment is above average compared with other stock investment alternatives with a Sentiment Rank of 56. But the company’s financing is risky with a Safety rank of 1. This means 99% of comparable companies have a safer financing structure than CONMED. ...read more

RECOMMENDATION: With a consolidated 360° View of 54, CONMED is better positioned than 54% of all alternative stock investment opportunities based on the Obermatt Method. As three out of four consolidated Obermatt Ranks exhibit excellent performance, such as good value (Value Rank of 67), above-average growth (Growth Rank of 79), and positive market sentiment in the professional investor community (Sentiment Rank of 56), it is a solid stock investment where the risk of paying too much for the shares is limited, and disappointments are less likely, unless information not publicly available. Only the company financing structure is on the riskier side (Safety Rank of 1), but that would also mean better returns for shareholders if things work out well. Good value is sometimes an indication that the company's future is challenging. If they have been growing above average and are still a good value, it may indicate that this will not continue. We recommend evaluating whether the future of CONMED is as difficult as the low price of the stock, despite good growth and positive professional investor sentiment, suggests. Since the professional community is optimistic, you might have less to worry about, and the stock is just not sufficiently visible right now, which may indicate good timing. ...read more

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Sentiment Strategy: Professional Market Sentiment for CONMED positive

SENTIMENT METRICS	December 28, 2023
ANALYST OPINION
ANALYST OPINION	37
OPINIONS CHANGE
OPINIONS CHANGE	50
PRO HOLDINGS
PRO HOLDINGS	48
MARKET PULSE
MARKET PULSE	86
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	56

ANALYSIS: With an Obermatt Sentiment Rank of 56 (better than 56% compared with alternatives), overall professional sentiment and engagement for the stock CONMED is above average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the indicators below and above average for CONMED. Analyst Opinions are at a rank of 37 (worse than 63% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. But they are changing their opinions! Analyst Opinions Change has a rank of 50 which means that stock research experts are changing their opinions for the better. In other words, they are getting more optimistic of stock investments in CONMED. Market Pulse is also positive with a rank of 86, which means that the current professional news and professional social networks are positive in their discussions about this company (more positive news than for 86% of competitors). Only professional investors tend to be absent with a Professional Investors rank of 48, which means that professional investors hold less stock in this company than in 52% of alternative investment opportunities. Pros tend to invest in other companies. But that could also be due to the size of the company. Professional investors tend to invest in XL and XXL companies. If the company is smaller than that, that fact alone may explain why there are fewer pros present. ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 56 (more positive than 56% compared with investment alternatives), CONMED has a reputation among professional investors that is above-average compared with that of its competitors. Since analysts are getting more optimistic and the professional communication channels are positive, it may be an indication of a company that has the difficult times behind it or the stocks’ value is improving. For medium to smaller companies, the positive sentiment indicators outshine the negative. ...read more

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Value Strategy: CONMED Stock Price Value better than average

VALUE METRICS	December 28, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	56
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	34
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	46
DIVIDEND YIELD
DIVIDEND YIELD	83
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	67

ANALYSIS: With an Obermatt Value Rank of 67 (better than 67% compared with alternatives), CONMED shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for CONMED. Price-to-Sales (P/S) is 56, which means that the stock price compared with what market professionals expect for future sales is lower than for 56% of comparable companies, indicating a good value concerning CONMED's revenue size. The same is valid for dividend yields with a Dividend Yield rank of 83, which means that dividends are expected to be higher than for 83% of comparable investments. On the other hand, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is less favorable than for 54% of alternatives (only 46% of peers have an even higher ratio). The same is valid for the Price-to-Profit (or Price / Earnings, P/E) ratio, which is higher than for 66% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 67, is a buy recommendation based on CONMED's stock price compared with the company's operational size and dividend yields. This is a somewhat surprising picture, because it means that profits are low while dividends are high. One interpretation could be that profits are expected to increase, justifying the high dividend payments. But it could also mean that the company desperately keeps the high dividends to avoid a collapsing share price. This would be a rather dangerous constellation. ...read more

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Growth Strategy: CONMED Growth Momentum high

GROWTH METRICS	December 28, 2023
REVENUE GROWTH
REVENUE GROWTH	44
PROFIT GROWTH
PROFIT GROWTH	89
CAPITAL GROWTH
CAPITAL GROWTH	39
STOCK RETURNS
STOCK RETURNS	85
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	79

ANALYSIS: With an Obermatt Growth Rank of 79 (better than 79% compared with alternatives) for 2023, CONMED shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for CONMED. Profit Growth has a rank of 89, which means that currently professionals expect the company to grow its profits more than 89% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 85 (above 85% of alternative investments). But Sales Growth has a below the median rank of 44, which means that, currently, professionals expect the company to grow less than 56% of its competitors, and Capital Growth also has a lower rank of 39. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 79, is a buy recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for CONMED. ...read more

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Safety Strategy: CONMED Debt Financing Safety risky

SAFETY METRICS	December 28, 2023
LEVERAGE
LEVERAGE	14
REFINANCING
REFINANCING	19
LIQUIDITY
LIQUIDITY	53
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	1

ANALYSIS: With an Obermatt Safety Rank of 1 (better than 1% compared with alternatives), the company CONMED has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of CONMED is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for CONMED. Liquidity is at 53, meaning the company generates more profit to service its debt than 53% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 19, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 81% of its competitors. Leverage is also high at a rank of 14, which means that the company has an above-average debt-to-equity ratio. It has more debt than 86% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 1 (worse than 99% compared with alternatives), CONMED has a financing structure that is significantly riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. ...read more

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Combined financial peformance: CONMED Below-Average Financial Performance

COMBINED PERFORMANCE	December 28, 2023
VALUE
VALUE	67
GROWTH
GROWTH	79
SAFETY
SAFETY	53
COMBINED
COMBINED	48

ANALYSIS: With an Obermatt Combined Rank of 48 (worse than 52% compared with investment alternatives), CONMED (Health Care Equipment, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of CONMED are a good value (attractively priced) with a consolidated Value Rank of 67 (better than 67% of alternatives), show above-average growth (Growth Rank of 79) but are riskily financed (Safety Rank of 1), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 48, is a hold recommendation based on CONMED's financial characteristics. As the company CONMED's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 67) and above-average growth (Obermatt Growth Rank of 79), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 1) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. ...read more

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