Electromed (ELMD)
XASE:ELMD
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Electromed
(NYSE MKT:ELMD)
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Rating:82Outperform
Price Target:
$42.00
▲(69.15% Upside)
Action:Reiterated
Date:05/15/26
ELMD scores well primarily on financial strength (high and improving profitability, strong cash alignment in TTM, and an exceptionally low-risk, debt-free balance sheet) and a constructive earnings outlook with strong recent operating leverage. The score is tempered by overbought technical conditions and only moderate valuation support (P/E ~16 with no dividend yield provided).
Positive Factors
High and durable margins
Sustained gross margins near 78% and rising net margins provide durable operating profitability that supports reinvestment in sales and product support. High margin mix (device plus supplies) cushions profitability versus volume swings and enables margin-led scalability over months.
Negative Factors
Reliance on salesforce ramp
Management links incremental growth to expanding and ramping field reps; new reps take 4–6 months to reach productivity. This creates persistent execution risk: hiring delays, variable onboarding outcomes, or increased labor costs can slow revenue conversion for multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High and durable margins
Sustained gross margins near 78% and rising net margins provide durable operating profitability that supports reinvestment in sales and product support. High margin mix (device plus supplies) cushions profitability versus volume swings and enables margin-led scalability over months.
Read all positive factors
Electromed Key Performance Indicators (KPIs)
Electromed (ELMD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$310.01M
Dividend YieldN/A
Average Volume (3M)69.88K
Price to Earnings (P/E)30.5
Beta (1Y)0.70
Revenue Growth16.79%
EPS Growth45.17%
CountryUS
Employees174
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)1.22
Shares Outstanding8,280,064
10 Day Avg. Volume55,666
30 Day Avg. Volume69,876
Financial Highlights & Ratios
PEG Ratio0.49
Price to Book (P/B)4.24
Price to Sales (P/S)2.86
P/FCF Ratio16.53
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue4.10
Enterprise Value/Gross Profit5.22
Enterprise Value/Ebitda19.89
Forecast
1Y Price Target
$38.00Price Target Upside53.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.17
Revenue Forecast (FY)$73.33M
Electromed Business Overview & Revenue Model
Company Description
Electromed, Inc. is engaged in the creation, production, and sale of respiratory therapy devices. Their focus is on delivering airway clearance through High Frequency Chest Wall Oscillation (HFCWO) technology, aiding pulmonary care for individuals...
How the Company Makes Money
Electromed makes money primarily by selling its SmartVest HFCWO therapy systems. Revenue is generated when the company fulfills patient orders (typically initiated via physician prescription) and receives payment that is commonly reimbursed throug...
Electromed Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Sep 01, 2026
Earnings Call Sentiment Positive
The call highlights strong, broad-based financial performance (double-digit revenue growth, high operating leverage, margin durability), improved operational capability (completed manufacturing optimization, ePrescribe adoption), a healthy balance sheet (cash, no debt) and a large addressable bronchiectasis market supported by active clinical and digital outreach. Challenges include modest non-core revenue, reliance on ramping sales rep headcount for incremental growth, slowed share repurchases due to macro uncertainty, and remaining uncertainty on guideline publication and conversion rates from clinician engagement. Overall, the positives (robust revenue and profit expansion, operational wins, market opportunity) substantially outweigh the negatives.Positive Updates
Consistent Top-Line and Profit Growth
Revenue of $18.6M, up 18.4% year-over-year; 14th consecutive quarter of year-over-year revenue and profit growth. Net income $3.0M, up 58.8%, and diluted EPS $0.35, up 67% versus prior year.
Negative Updates
Decline in 'Other' Revenue
Other revenue declined 40.7% to $0.1M, indicating weakness or variability in non-core revenue streams.
Read all updates
Q3-2026 Updates
Positive
Negative
Consistent Top-Line and Profit Growth
Revenue of $18.6M, up 18.4% year-over-year; 14th consecutive quarter of year-over-year revenue and profit growth. Net income $3.0M, up 58.8%, and diluted EPS $0.35, up 67% versus prior year.
Read all positive updates
Company Guidance
Management guided that Electromed expects to continue delivering double‑digit revenue growth with expanded operating leverage as it closes fiscal 2026, touting plans to grow field coverage (ending Q3 with 58 reps, now 62 territories and targeting 4–5 additional reps next fiscal year with a typical 4–6 month ramp), and to scale ePrescribe adoption (40% of orders in Q3, driving a 5‑day average reduction in days‑to‑ship and positioning the company ahead of CMS’s May 2028 fax phase‑out). They reiterated capital return optionality under a Board‑approved $10.0M repurchase authorization ( $3.9M repurchased YTD, activity slowed in Q3), while citing Q3 operating momentum—net revenues $18.6M (+18.4%), home care $16.7M (+18.6%), hospital $1.0M (+42.5%), gross profit $14.6M (78.8% margin), operating income $3.8M (20.3% of revenue, +76%), net income $3.0M ($0.35 diluted)—and a strong balance sheet ($17.0M cash, $28.3M AR, no debt, $40.0M working capital, $49.2M shareholders’ equity). They emphasized commercial levers (86% covered lives, digital campaign with >2.0M impressions and ~65,000 landing‑page visits, 4 regional and 3 national conferences plus 4 webinars with ~375 clinicians) and clinical opportunity (≈923,000 diagnosed U.S. bronchiectasis patients with only 16% on HFCWO and a registry finding 58% of qualifying patients not prescribed HFCWO) as the rationale for continued investment and growth.Electromed Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
93
Very Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 71.75M | 64.00M | 54.72M | 48.07M | 41.66M | 35.76M |
| Gross Profit | 56.28M | 49.97M | 41.73M | 36.52M | 31.44M | 27.30M |
| EBITDA | 14.78M | 11.46M | 7.88M | 4.70M | 3.63M | 3.78M |
| Net Income | 10.10M | 7.54M | 5.15M | 3.17M | 2.31M | 2.36M |
Balance Sheet | ||||||
| Total Assets | 59.47M | 53.80M | 52.23M | 45.81M | 41.36M | 37.11M |
| Cash, Cash Equivalents and Short-Term Investments | 16.98M | 15.29M | 16.08M | 7.37M | 8.15M | 11.89M |
| Total Debt | 0.00 | 198.00K | 87.00K | 161.00K | 41.00K | 87.00K |
| Total Liabilities | 10.31M | 10.59M | 7.69M | 8.14M | 7.19M | 4.69M |
| Stockholders Equity | 49.17M | 43.21M | 44.55M | 37.67M | 34.17M | 32.42M |
Cash Flow | ||||||
| Free Cash Flow | 10.23M | 11.09M | 8.67M | -401.00K | -2.21M | 2.63M |
| Operating Cash Flow | 10.53M | 11.39M | 9.07M | 1.31M | -686.00K | 3.08M |
| Investing Cash Flow | -1.23M | -306.00K | -395.00K | -1.72M | -1.52M | -448.00K |
| Financing Cash Flow | -7.55M | -11.88M | 36.00K | -380.00K | -1.52M | -1.22M |
Electromed Technical Analysis
Positive
24.83
Price Trends
31.18
Positive
28.25
Positive
27.18
Positive
Market Momentum
1.62
Positive
61.82
Neutral
52.49
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 37.50, below the 50-day MA of 31.18, and below the 200-day MA of 27.18, indicating a bullish trend. The MACD of 1.62 indicates Positive momentum. The RSI at 61.82 is Neutral, neither overbought nor oversold. The STOCH value of 52.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ELMD.
Electromed Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $310.01M | 30.52 | 22.14% | ― | 16.79% | 45.17% | |
76 Outperform | $400.24M | 26.63 | 10.66% | ― | 23.10% | 22.75% | |
56 Neutral | $62.99M | 35.22 | 3.68% | ― | -0.32% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $174.90M | -7.03 | -12.90% | ― | 3.39% | 19.78% | |
47 Neutral | $132.15M | -2.44 | -120.77% | ― | 11.73% | 8.07% | |
46 Neutral | $44.61M | -5.74 | -15.79% | ― | -42.94% | -529.29% |
* Healthcare Sector Average
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Electromed Corporate Events
Business Operations and StrategyFinancial Disclosures
Electromed Reports Record Q3 Revenue and Profit Growth
Positive
May 12, 2026
Electromed, Inc. reported record financial results for its fiscal 2026 third quarter ended March 31, 2026, with net revenue up 18.4% year over year to $18.6 million, driven by an 18.6% gain in its core direct homecare business. Revenue growth, hig...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.