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CONMED Corporation (CNMD)

Company Dividend Discount ModelIndustry: Medical - DevicesSector: Healthcare

Valuation Snapshot

Stable Growth$33.29 - $64.16$45.62
Multi-Stage$31.47 - $34.40$32.91
Blended Fair Value$39.27
Current Price$52.08
Upside-24.60%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS1.75%1.16%0.790.790.770.750.730.730.720.720.710.71
YoY Growth--0.61%2.26%3.03%1.92%0.96%0.70%0.61%0.42%0.49%0.66%
Dividend Yield--1.31%1.00%0.74%0.50%0.56%1.27%0.87%1.13%1.61%1.70%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)64.07
(-) Cash Dividends Paid (M)24.73
(=) Cash Retained (M)39.34
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)12.818.014.81
Cash Retained (M)39.3439.3439.34
(-) Cash Required (M)-12.81-8.01-4.81
(=) Excess Retained (M)26.5231.3334.53
(/) Shares Outstanding (M)31.0931.0931.09
(=) Excess Retained per Share0.851.011.11
LTM Dividend per Share0.800.800.80
(+) Excess Retained per Share0.851.011.11
(=) Adjusted Dividend1.651.801.91
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate3.93%4.93%5.93%
Fair Value$33.29$45.62$64.16
Upside / Downside-36.08%-12.40%23.20%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)64.0767.2370.5574.0377.6881.5183.96
Payout Ratio38.60%48.88%59.16%69.44%79.72%90.00%92.50%
Projected Dividends (M)24.7332.8641.7451.4161.9373.3677.66

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate3.93%4.93%5.93%
Year 1 PV (M)29.8430.1330.41
Year 2 PV (M)34.4135.0835.75
Year 3 PV (M)38.4939.6140.75
Year 4 PV (M)42.1043.7445.43
Year 5 PV (M)45.2847.5049.81
PV of Terminal Value (M)788.45827.12867.29
Equity Value (M)978.571,023.181,069.45
Shares Outstanding (M)31.0931.0931.09
Fair Value$31.47$32.91$34.40
Upside / Downside-39.57%-36.81%-33.95%

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