Electromed (ELMD)
XASE:ELMD
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Electromed
(NYSE MKT:ELMD)
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Rating:76Outperform
Price Target:
$31.00
▲(24.85% Upside)
Action:ReiteratedDate:02/11/26
ELMD scores well on financial strength (expanding profitability, strong returns, and a near debt-free balance sheet) and supportive earnings-call guidance centered on double-digit growth and operating leverage. The score is tempered by a weaker short-term technical backdrop and a relatively high P/E with no dividend yield provided, plus the noted recent slowdown in TTM revenue growth and past cash-flow volatility.
Positive Factors
Balance sheet strength
Electromed’s near-zero leverage and meaningful liquidity create durable financial flexibility for multi-quarter investments or downturns. A strong equity base and cash buffer reduce refinancing risk, support buybacks or targeted growth spend, and preserve optionality for strategic initiatives.
Negative Factors
Revenue growth deceleration
A notable slowdown in trailing growth versus prior multi-year expansion signals tougher upcoming comparisons or market saturation headwinds. If sustained, slower top-line momentum could limit operating leverage benefits and pressure near-term margin expansion expectations.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Electromed’s near-zero leverage and meaningful liquidity create durable financial flexibility for multi-quarter investments or downturns. A strong equity base and cash buffer reduce refinancing risk, support buybacks or targeted growth spend, and preserve optionality for strategic initiatives.
Read all positive factors
Electromed (ELMD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$199.60M
Dividend YieldN/A
Average Volume (3M)47.96K
Price to Earnings (P/E)21.8
Beta (1Y)0.70
Revenue Growth16.05%
EPS Growth29.48%
CountryUS
Employees174
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.32
Shares Outstanding8,275,313
10 Day Avg. Volume47,324
30 Day Avg. Volume47,963
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 Cap0.98
Enterprise Value/Revenue2.85
Enterprise Value/Gross Profit3.65
Enterprise Value/Ebitda15.41
Forecast
1Y Price Target
$37.33Price Target Upside50.34% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)1.1
Revenue Forecast (FY)$71.98M
Electromed Business Overview & Revenue Model
Company Description
Electromed, Inc. develops, manufactures, markets, and sells airway clearance therapy and related products that apply high frequency chest wall oscillation (HFCWO) therapy in pulmonary care for patients of various ages in the United States and inte...
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 mainten...
Electromed Key Performance Indicators (KPIs)
Electromed Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive operational and financial picture: record revenue growth, meaningful margin expansion, robust home-care execution, and multiple strategic initiatives (payer contracts, digital order flow, CRM, manufacturing optimization). The main negatives are a decline in hospital and other revenues, a one-time-like cash reduction driven by share repurchases, higher SG&A tied to growth investments, and a meaningful market education gap (58% of qualifying patients not receiving therapy). Taken together, the positives (sustained top-line growth, improved profitability, balance sheet strength, and clear large addressable market) materially outweigh the near-term challenges and risks discussed.Positive Updates
Record Revenue and Continued Growth Streak
Net revenue of $18.9M in Q2 FY2026, a 16.3% year-over-year increase; marks the thirteenth consecutive quarter of year-over-year revenue and profit growth.
Negative Updates
Hospital Channel Weakness
Hospital revenue declined 9.4% YoY to $700K; management attributes decline to strategic prioritization of shipments to high-demand home patients and timing volatility of capital orders.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue and Continued Growth Streak
Net revenue of $18.9M in Q2 FY2026, a 16.3% year-over-year increase; marks the thirteenth consecutive quarter of year-over-year revenue and profit growth.
Read all positive updates
Company Guidance
Electromed reiterated forward-looking targets of double-digit top-line growth and expanded operating leverage for the coming quarters and full FY2026, while planning to grow its direct sales force from an average of 58 reps in Q2 to 61 reps by year-end (annualized home care revenue per rep target $1.0–$1.1M, versus $1.2M achieved in Q2), and to sustain mid-70%+ gross margins (Q2 gross margin 78.4%). Management also signaled confidence in capital allocation with a $10.0M stock repurchase authorization ( ~$3.8M repurchased in the six months), a strong balance sheet (cash $13.8M, no debt, working capital $36.2M, shareholders’ equity $45.4M), and continued payer expansion (25 contracts adding 2.9M covered lives to >270M). Operational levers highlighted to drive the guidance include continued Smart Order adoption (over one-third of Q2 orders), CRM-driven sales productivity gains, completed manufacturing optimization, and an expectation that hospital demand (hospital revenue $0.7M, down 9.4% in Q2) will rebound.Electromed Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
83
Very Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 68.86M | 64.00M | 54.72M | 48.07M | 41.66M | 35.76M |
| Gross Profit | 53.87M | 49.97M | 41.73M | 36.52M | 31.44M | 27.30M |
| EBITDA | 12.76M | 10.83M | 7.42M | 4.62M | 3.60M | 3.75M |
| Net Income | 8.99M | 7.54M | 5.15M | 3.17M | 2.31M | 2.36M |
Balance Sheet | ||||||
| Total Assets | 54.91M | 53.80M | 52.23M | 45.81M | 41.36M | 37.11M |
| Cash, Cash Equivalents and Short-Term Investments | 13.79M | 15.29M | 16.08M | 7.37M | 8.15M | 11.89M |
| Total Debt | 96.00K | 198.00K | 87.00K | 161.00K | 41.00K | 87.00K |
| Total Liabilities | 9.47M | 10.59M | 7.69M | 8.14M | 7.19M | 4.69M |
| Stockholders Equity | 45.44M | 43.21M | 44.55M | 37.67M | 34.17M | 32.42M |
Cash Flow | ||||||
| Free Cash Flow | 9.21M | 11.09M | 8.67M | -401.00K | -2.21M | 2.63M |
| Operating Cash Flow | 9.13M | 11.39M | 9.07M | 1.31M | -686.00K | 3.08M |
| Investing Cash Flow | -934.00K | -306.00K | -395.00K | -1.72M | -1.52M | -448.00K |
| Financing Cash Flow | -10.64M | -11.88M | 36.00K | -380.00K | -1.52M | -1.22M |
Electromed Technical Analysis
Positive
24.83
Price Trends
24.88
Positive
26.45
Negative
24.41
Positive
Market Momentum
-0.08
Negative
56.32
Neutral
78.27
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 above the 20-day moving average (MA) of 24.02, below the 50-day MA of 24.88, and above the 200-day MA of 24.41, indicating a bullish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 56.32 is Neutral, neither overbought nor oversold. The STOCH value of 78.27 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $367.11M | 19.35 | 10.87% | ― | 18.90% | 29.22% | |
76 Outperform | $199.60M | 21.81 | 20.28% | ― | 16.05% | 29.48% | |
60 Neutral | $67.23M | 22.00 | 10.27% | ― | 16.88% | ― | |
56 Neutral | $172.38M | -8.03 | -11.56% | ― | 4.68% | 55.37% | |
52 Neutral | $73.91M | -5.13 | -15.11% | ― | -13.79% | -132.21% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
45 Neutral | $188.26M | -3.47 | -99.33% | ― | 18.44% | 25.42% |
* Healthcare Sector Average
ELMD
Electromed
24.95
2.02
8.81%
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Electromed Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Electromed Reports Record Q2 2026 Revenue and Profitability
Positive
Feb 10, 2026
Electromed, Inc., a medical device maker specializing in airway clearance systems such as its SmartVest® product for patients with chronic pulmonary conditions, reported record financial results for its fiscal 2026 second quarter, covering th...
Business Operations and StrategyPrivate Placements and Financing
Electromed Enters New Senior Secured Revolving Credit Facility
Positive
Dec 18, 2025
On December 16, 2025, Electromed, Inc. entered into a new senior secured credit agreement with BMO Bank N.A. for a $10 million revolving line of credit maturing on December 16, 2026, secured by a first-priority interest in substantially all existi...
Executive/Board ChangesShareholder Meetings
Electromed Shareholders Elect Directors and Approve Compensation
Neutral
Nov 18, 2025
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 end...
Business Operations and StrategyStock BuybackFinancial Disclosures
Electromed Reports Strong Q1 2026 Financial Results
Positive
Nov 12, 2025
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 m...
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.