NEW YORK ( TheStreet) -- Conmed Corporation (Nasdaq: CNMD) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- Compared to where it was trading one year ago, CNMD is up 13.31% to its most recent closing price of 30.38. Looking ahead, although the push and pull of a bull or bear market could certainly alter the outcome, our view is that this stock's positive fundamentals give it good potential for further appreciation.
- CNMD's revenue growth has slightly outpaced the industry average of 8.0%. Since the same quarter one year prior, revenues slightly increased by 0.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- CNMD's debt-to-equity ratio is very low at 0.25 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.23, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has increased to $26.28 million or 14.51% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -3.21%.
- The gross profit margin for CONMED CORP is rather high; currently it is at 55.90%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -13.50% is in-line with the industry average.
-- Written by a member of TheStreet RatingsStaff