Electromed (ELMD) AI Stock Analysis

• Market Cap: $249.22M
• Dividend Yield: N/A
• Average Volume (3M): 48.45K
• Price to Earnings (P/E): 32.0
• Beta (1Y): 0.64
• Revenue Growth: 16.05%
• EPS Growth: 29.48%
• Country: US
• Employees: 174
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.25
• Shares Outstanding: 8,340,538
• 10 Day Avg. Volume: 45,019
• 30 Day Avg. Volume: 48,450
• PEG Ratio: 0.49
• Price to Book (P/B): 4.24
• Price to Sales (P/S): 2.86
• P/FCF Ratio: 16.53
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 3.01
• Enterprise Value/Gross Profit: 3.85
• Enterprise Value/Ebitda: 17.02
• 1Y Price Target: $36.67
• Price Target Upside: 47.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 1.01
• Revenue Forecast (FY): $71.83M

• Rating: 78 Outperform
• Price Target: $32.00 ▲(28.88% Upside)

Electromed's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The technical analysis shows a strong trend but warns of potential overbought conditions. Valuation concerns due to a high P/E ratio and lack of dividend yield slightly temper the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth over multiple quarters indicates strong market demand and effective business strategies, supporting long-term stability.

Operational Efficiency

Improved operational efficiency and cost management enhance profitability, allowing for reinvestment in growth and competitive positioning.

Balance Sheet Health

A strong balance sheet with low leverage provides financial flexibility, reducing risk and supporting sustainable growth initiatives.

Negative Factors

Decline in Free Cash Flow

A decline in free cash flow growth can limit the company's ability to invest in new opportunities and manage financial obligations effectively.

Challenges with Hospital Sales

Unpredictable hospital sales cycles can lead to revenue volatility, affecting long-term planning and resource allocation.

Decrease in Other Revenue

A significant decrease in other revenue streams may indicate challenges in diversifying income sources, impacting overall financial resilience.

Electromed Business Overview & Revenue Model

Company Description

Electromed, Inc. (ELMD) is a medical device company that specializes in developing and manufacturing innovative airway clearance products for patients with chronic respiratory conditions. The company primarily operates in the healthcare sector, focusing on creating effective solutions for patients with cystic fibrosis, bronchiectasis, and other respiratory illnesses. Electromed's flagship product, the SmartVest, utilizes high-frequency chest wall oscillation technology to help clear mucus from the lungs, improving patients' quality of life and reducing hospitalizations.

How the Company Makes Money

Electromed generates revenue through the sale of its medical devices, particularly the SmartVest, which is sold directly to patients, healthcare providers, and hospitals. The company also earns revenue from ongoing sales of accessories and maintenance services related to its devices. A significant portion of its revenue is derived from reimbursement from government and private insurance plans for the use of its products, as these devices are often covered under health insurance. Additionally, Electromed may benefit from strategic partnerships with healthcare institutions and organizations that facilitate patient access to their products, enhancing their market presence and sales opportunities.

Electromed Financial Statement Overview

Summary

Electromed exhibits strong financial performance with consistent revenue and profit growth, robust profitability margins, and a solid balance sheet with minimal leverage. Despite a slight concern regarding the recent decline in free cash flow growth, the company's overall cash flow management remains effective.

Income Statement

Electromed has demonstrated consistent revenue growth over the years, with a notable 4.17% increase in the most recent period. The company maintains strong profitability metrics, with a gross profit margin of 78.08% and a net profit margin of 11.78%. EBIT and EBITDA margins are also robust at 15.09% and 16.93%, respectively, indicating efficient operational management. The steady improvement in these metrics reflects a solid financial performance in the medical devices industry.

Balance Sheet

The balance sheet of Electromed is strong, characterized by a very low debt-to-equity ratio, indicating minimal leverage and financial risk. The return on equity stands at 17.44%, showcasing effective utilization of shareholder funds to generate profits. The equity ratio is healthy, reflecting a stable financial position with a good proportion of assets funded by equity. Overall, the company maintains a solid balance sheet with low financial risk.

Cash Flow

Electromed's cash flow statement reveals a slight decline in free cash flow growth, down by 7.14% in the latest period, which could be a concern if it continues. However, the operating cash flow to net income ratio is above 1, indicating that the company generates sufficient cash from operations to cover its net income. The free cash flow to net income ratio is also strong at 97.31%, suggesting efficient cash management. Despite the recent dip in free cash flow growth, the overall cash flow position remains stable.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	66.22M	64.00M	54.72M	48.07M	41.66M	35.76M
Gross Profit	51.68M	49.97M	41.73M	36.52M	31.44M	27.30M
EBITDA	11.69M	10.83M	7.42M	4.62M	3.60M	3.75M
Net Income	8.20M	7.54M	5.15M	3.17M	2.31M	2.36M
Balance Sheet
Total Assets	53.61M	53.80M	52.23M	45.81M	41.36M	37.11M
Cash, Cash Equivalents and Short-Term Investments	14.11M	15.29M	16.08M	7.37M	8.15M	11.89M
Total Debt	110.00K	198.00K	87.00K	161.00K	41.00K	87.00K
Total Liabilities	8.87M	10.59M	7.69M	8.14M	7.19M	4.69M
Stockholders Equity	44.74M	43.21M	44.55M	37.67M	34.17M	32.42M
Cash Flow
Free Cash Flow	8.83M	11.09M	8.67M	-401.00K	-2.21M	2.63M
Operating Cash Flow	9.25M	11.39M	9.07M	1.31M	-686.00K	3.08M
Investing Cash Flow	-515.00K	-306.00K	-395.00K	-1.72M	-1.52M	-448.00K
Financing Cash Flow	-8.49M	-11.88M	36.00K	-380.00K	-1.52M	-1.22M

Electromed Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 24.83 is below the 20-day moving average (MA) of 27.82, below the 50-day MA of 25.93, and above the 200-day MA of 22.95, indicating a bullish trend. The MACD of 1.20 indicates Negative momentum. The RSI at 70.67 is Negative, neither overbought nor oversold. The STOCH value of 75.13 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	$249.22M	32.01	19.02%	―	16.05%	29.48%
VMD	72 Outperform	$276.01M	22.32	10.53%	―	18.90%	29.22%
SRTS	65 Neutral	$62.42M	-20.41	-5.71%	―	-13.79%	-132.21%
XTNT	59 Neutral	$102.90M	76.27	3.64%	―	16.88%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CVRX	49 Neutral	$218.07M	-3.95	-91.88%	―	18.44%	25.42%
INGN	43 Neutral	$184.88M	-6.79	-13.27%	―	4.68%	55.37%

Electromed Corporate Events

Electromed Shareholders Elect Directors and Approve Compensation

At the annual meeting held on November 14, 2025, Electromed, Inc. shareholders elected eight directors for a one-year term. Additionally, they ratified the appointment of RSM US LLP as the independent public accounting firm for the fiscal year ending June 30, 2026, and approved executive compensation on a non-binding basis. The board decided to continue annual votes on executive compensation.

Electromed Reports Strong Q1 2026 Financial Results

Electromed, Inc. reported strong financial results for the first quarter of fiscal 2026, ending September 30, 2025, marking the twelfth consecutive quarter of year-over-year revenue and net income growth. Net revenues increased by 15.1% to $16.9 million, and net income rose by 44.9% to $2.1 million. The company also completed a manufacturing optimization plan and implemented a new CRM system, enhancing sales productivity and positioning Electromed for future growth. The board approved a $10 million stock repurchase authorization, reflecting confidence in the company’s ongoing performance.

Electromed Announces New $10 Million Share Buyback

On September 9, 2025, Electromed, Inc. announced a new share repurchase authorization of up to $10 million following the exhaustion of its previous authorization. The decision, driven by strong operational performance and robust cash reserves, aims to enhance shareholder value, with repurchases dependent on market conditions and corporate considerations.