Core Thesis - CONMED Corporation is viewed positively due to its strong fundamentals, recovery in supply chain efficiency, and potential for significant value appreciation over the next three years [1][5]. Company Overview - CONMED Corporation is a global medical device company focused on less invasive and effective surgical solutions across various medical fields, including orthopedics and general surgery [2]. - The company was founded in 1970 and has expanded through acquisitions and internal R&D, with notable acquisitions including Linvatec in the 1990s and Buffalo Filter in 2019 [2]. Financial Performance - In 2024, CONMED generated approximately $1.3 billion in revenue, with 42% from orthopedic surgery and 58% from general surgery [3]. - The orthopedic segment relies heavily on single-use disposables, contributing 79% of its revenue, while the general surgery segment features high-margin products, with over 92% of revenue from single-use items [3]. - Revenue has increased by 30%, free cash flow has risen by 50%, and returns on capital have improved, indicating strong financial health [4]. Market Position and Growth Potential - Despite a decline of over 70% from 2021 highs, CONMED's fundamentals remain robust, with significant margin expansion and management forecasting peak EPS in 2025 [4]. - Approximately 45% of sales are derived from international markets, providing a diversified revenue stream [3]. - The company is expected to benefit from industry tailwinds, although past supply chain disruptions have temporarily affected its market share, particularly in orthopedics [4]. Investment Case - The investment case for CONMED is strengthened by its differentiated products, high recurring revenue, and recovery in supply chain efficiency [5]. - Assuming mid-single-digit growth and modest margin improvement, the company could potentially double in value over the next three years, indicating a potential compound annual growth rate (CAGR) of approximately 27% [5].