Electromed (ELMD) AI Stock Analysis

• Market Cap: $197.24M
• Dividend Yield: N/A
• Average Volume (3M): 61.22K
• Price to Earnings (P/E): 30.5
• Beta (1Y): 0.50
• Revenue Growth: 15.35%
• EPS Growth: 71.35%
• Country: US
• Employees: 174
• Sector: Healthcare
• Sector Strength: 74
• Industry: Medical - Devices
• EPS (TTM): 0.76
• Shares Outstanding: 8,556,844
• 10 Day Avg. Volume: 46,559
• 30 Day Avg. Volume: 61,224
• PEG Ratio: 0.43
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 5.95
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $37.00
• Price Target Upside: 60.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Electromed's overall stock score reflects its strong financial performance and positive earnings outlook, underscored by robust revenue growth and effective management. Technical analysis suggests caution due to trading below key averages, and valuation indicators imply potential overvaluation. However, strategic expansions and a solid cash position support future growth prospects.

Positive Factors

Financial Health

The company has $16M in cash, $23M in accounts receivable, no debt, and is the final remaining pure-play in the HFCWO space, making it an attractive takeout target for a larger medtech strategy.

Management and Operations

The new management team and board have accomplished growth through product enhancements, sales force productivity, leaner and more efficient reimbursement, market development efforts, and streamlined operations.

Negative Factors

Market Penetration

As the Company continues to gain traction in the underpenetrated bronchiectasis market, multiple expansion is warranted.

Electromed Business Overview & Revenue Model

Company Description

Electromed, Inc. (ELMD) is a medical device company that specializes in designing, manufacturing, and marketing airway clearance products for patients with compromised pulmonary function. The company's flagship product is the SmartVest Airway Clearance System, which is used to treat patients suffering from chronic respiratory conditions such as bronchiectasis, cystic fibrosis, and neuromuscular disorders. Electromed operates within the healthcare sector, focusing on improving patient outcomes through innovative and effective respiratory therapy solutions.

How the Company Makes Money

Electromed generates revenue primarily through the sale of its SmartVest Airway Clearance System. The company markets its products directly to patients, hospitals, and clinics, as well as through a network of distributors. Revenue is largely driven by direct sales efforts, which include patient education and outreach programs to increase awareness and adoption of the SmartVest system. Electromed also benefits from recurring revenue streams through the sale of replacement parts and accessories for the SmartVest system. Key factors contributing to its earnings include a growing market for airway clearance devices, an expanding customer base, and strategic partnerships with healthcare providers to facilitate product adoption and integration into patient care programs.

Electromed Financial Statement Overview

Summary

Electromed demonstrates strong financial health across all aspects. The company showcases robust revenue growth and profitability, solid financial stability with no debt, and excellent cash flow generation. These factors position Electromed well for future growth and resilience against market fluctuations.

Income Statement

Electromed's income statement reflects strong profitability with a TTM gross profit margin of 76.8% and a net profit margin of 11.3%. Revenue has grown robustly, increasing by 9.0% over the previous annual period, and EBIT margin is healthy at 14.5%. These metrics indicate a well-managed cost structure and operational efficiency.

Balance Sheet

The balance sheet is solid with zero total debt and a strong equity ratio of 83.4%, underscoring financial stability. Return on Equity is impressive at 15.5%, showing effective utilization of equity to generate profits. The absence of debt minimizes financial risk and enhances stability.

Cash Flow

Cash flow is exceptionally strong, with a free cash flow growth rate of 28.3% TTM and a high operating cash flow to net income ratio of 1.67, reflecting robust cash generation. The free cash flow to net income ratio of 1.64 indicates excellent liquidity and efficient cash utilization.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
54.72M	48.07M	41.66M	35.76M	32.47M
	Gross Profit
41.73M	36.52M	31.44M	27.30M	25.20M
	EBIT
6.58M	4.01M	2.97M	3.14M	5.12M
	EBITDA
7.42M	4.62M	3.60M	3.75M	5.86M
	Net Income Common Stockholders
5.15M	3.17M	2.31M	2.36M	4.16M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.08M	7.37M	8.15M	11.89M	10.48M
	Total Assets
52.23M	45.81M	41.36M	37.11M	33.24M
	Total Debt
87.00K	161.00K	41.00K	87.00K	81.20K
	Net Debt
-16.08M	-7.21M	-8.11M	-11.80M	-10.40M
	Total Liabilities
7.69M	8.14M	7.19M	4.69M	3.00M
	Stockholders Equity
44.55M	37.67M	34.17M	32.42M	30.25M
Cash Flow		Free Cash Flow
8.67M	-401.00K	-2.21M	2.63M	3.22M
	Operating Cash Flow
9.07M	1.31M	-686.00K	3.08M	4.20M
	Investing Cash Flow
-395.00K	-1.72M	-1.52M	-448.00K	-977.20K
	Financing Cash Flow
36.00K	-380.00K	-1.52M	-1.22M	-548.03K

Electromed Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELMD, the sentiment is Positive. The current price of 23.05 is above the 20-day moving average (MA) of 22.80, below the 50-day MA of 24.21, and below the 200-day MA of 24.17, indicating a neutral trend. The MACD of -0.40 indicates Negative momentum. The RSI at 47.53 is Neutral, neither overbought nor oversold. The STOCH value of 62.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ELMD.

Electromed Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELMD	78 Outperform	$197.24M	30.53	16.11%	―	15.35%	71.35%
VMD	71 Outperform	$279.04M	25.70	9.19%	―	22.54%	8.55%
SRTS	69 Neutral	$71.43M	10.65	12.70%	―	71.31%	1277.03%
Sector *	52 Neutral	$5.28B	3.75	-42.72%	2.86%	17.70%	2.03%
LUNG	51 Neutral	$151.73M	―	-60.68%	―	22.01%	10.02%
INGN	49 Neutral	$189.82M	―	-18.95%	―	6.35%	65.58%
SNWV	48 Neutral	$255.77M	―	0.65%	―	59.99%	57.11%

Electromed Corporate Events

Electromed Announces $5 Million Share Buyback Program

On March 6, 2025, Electromed’s board of directors authorized a new share repurchase program, allowing the company to buy back up to $5.0 million of its common stock. This move, announced on March 10, 2025, reflects the company’s confidence in its business strength and aims to enhance shareholder value by utilizing excess cash reserves for stock repurchases, while maintaining financial flexibility for future growth.

Electromed Reports Record Q2 2025 Financial Performance

In the second quarter of fiscal 2025, Electromed, Inc. reported record financial performance with a net revenue increase of 18.7% to $16.3 million and a net income rise to $2.0 million. The company attributes its growth to strategic initiatives, a direct-to-patient model, and efficient operations, alongside expanded sales efforts and educational campaigns, positioning it strongly in the MedTech sector.