CNMD (Conmed Corp) vs S&P 500 Comparison

CNMD

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CNMD

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CNMD

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Conmed Corp
Glance View

Economic Moat

None

Market Cap

1.2B USD

Industry

Health Care

Conmed Corporation, founded in the small city of Utica, New York, has carved a niche for itself in the competitive world of medical technology. The company, which began its journey in the mid-1970s, has evolved into a global player by specializing in a variety of surgical and patient care products. At its core, Conmed thrives on its deep expertise in the design and manufacturing of surgical instruments used predominantly in minimally invasive procedures. These include sophisticated medical devices for orthopedic, laparoscopic, robotic, and general surgeries. Conmed’s strategic focus has always been on innovation, driven by a commitment to enhance the surgeon's ability to provide superior patient care, which is evident in their continuous research and development efforts aimed at creating more efficient and effective tools for medical professionals. The revenue streams for Conmed are as diversified as their product offerings. By selling advanced surgical equipment and medical products to hospitals, surgical centers, and outpatient facilities worldwide, Conmed positions itself as a critical supplier in the healthcare industry. A significant portion of their income is derived from the repeat sales of disposable items and replacement parts required for these high-tech devices. This creates a continuous cycle of revenue through both initial capital sales and recurring sales of consumables, quintessential for sustaining robust financial stability. Furthermore, the company's growth strategy has been marked by strategic acquisitions, allowing it to broaden its array of products and enter new markets, thereby ensuring its continued prominence and adaptability in the ever-evolving landscape of healthcare technology.

View CNMD Analysis

CNMD Intrinsic Value

Undervaluation 57%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

CNMD

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S&P 500

Stocks Performance
CNMD vs S&P 500

Performance Gap
CNMD vs S&P 500

Performance By Year
CNMD vs S&P 500

Competitors Performance
Conmed Corp vs Peers

Conmed Corp
Glance View

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CNMD vs S&P 500

Stocks Performance CNMD vs S&P 500

Performance Gap CNMD vs S&P 500

Performance By Year CNMD vs S&P 500

Competitors Performance Conmed Corp vs Peers

Conmed Corp Glance View

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CNMD

vs

S&P 500

Stocks Performance
CNMD vs S&P 500

Performance Gap
CNMD vs S&P 500

Performance By Year
CNMD vs S&P 500

Competitors Performance
Conmed Corp vs Peers

Conmed Corp
Glance View