Is CONMED (CNMD) Now Undervalued After a 40% Share Price Drop?

CONMED (CNMD) has quietly slipped over the past year, but the underlying business tells a more nuanced story, with steady revenue and earnings growth that makes the current share price worth a closer look.

See our latest analysis for CONMED.

Despite a steep year to date share price return of around negative 40 percent and a one year total shareholder return near negative 45 percent, investors are really reacting to a reset in expectations rather than a collapse in fundamentals. This may be setting up a more interesting entry point if revenue and earnings keep compounding.

If CONMED has you rethinking your healthcare allocations, this is also a good moment to explore other opportunities across healthcare stocks and see how they stack up on growth and quality.

With revenue still growing, earnings accelerating, and the share price trading at a steep discount both to intrinsic value estimates and analyst targets, is CONMED a mispriced compounder, or is the market already bracing for weaker growth?

Most Popular Narrative: 24.9% Undervalued

With CONMED last closing at $40.57 against a narrative fair value of $54, the current gap hinges on a specific earnings and margin equation.

The accelerating adoption of minimally invasive and robotic-assisted surgeries, combined with CONMED's strong positioning via AirSeal and BioBrace (including expanding use cases and positive clinical feedback), is expected to support durable procedure volume growth and increase recurring revenue, which in turn could drive sustained top-line growth.

Read the complete narrative.

Want to see what kind of revenue runway and margin lift that thesis is banking on? The narrative focuses on ambitious compounding, disciplined profitability, and a surprisingly restrained future earnings multiple.

Result: Fair Value of $54 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent supply chain issues and any pullback in hospital capital spending could quickly cap growth, undermining both margin expansion and the bullish valuation case.

Find out about the key risks to this CONMED narrative.

Build Your Own CONMED Narrative

If this outlook does not fully align with your view, or you would rather dig into the numbers yourself, you can craft a personalized narrative in just a few minutes, Do it your way

A great starting point for your CONMED research is our analysis highlighting 4 key rewards and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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