CONMED Corporation: Organic Growth Is Masked By Divestitures

Given Mahlangu 392 Followers Follow Summary Conmed's headline growth appeared flat at $343 million in the last quarter, but organic growth actually increased by 6%, with the leading segment being the orthopedic surgery business. Growth was offset by the divestiture of the GI business; as a result, growth metrics look poor with a quant rating of F and below the sector growth. When I adjust for organic growth, impressive profitability, and a buyback story, Conmed stock looks highly undervalued below the sector multiple. and I am rating it a buy. SylviePM/iStock via Getty Images Investment thesis As I was screening through medtech companies, I happened to stumble upon a stock that has been recently outperforming its industry and peer group, driven by improving financials and management prioritizing shareholder value. This stock is This article was written by Given Mahlangu 392 Followers Follow Full-time Equity Analyst and part-time retail investor with a bias for high quality stocks trading at discounted prices. over the past 5 years I've been retail investing and learning more about how the stock market works, following the work of Ben Graham and Joel Greenblatt. Equity Markets are fascinating as they give us an analytical overview of how global markets are performing. Seeking Alpha is an incredible platform for me to share my research and analysis with fellow investors and analysts. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.