Electromed (ELMD) AI Stock Analysis

• Market Cap: $221.19M
• Dividend Yield: N/A
• Average Volume (3M): 45.31K
• Price to Earnings (P/E): 28.5
• Beta (1Y): 0.65
• 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: 63,501
• 30 Day Avg. Volume: 45,311
• 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: 0.90
• 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: 76 Outperform
• Price Target: $29.00 ▲(16.79% Upside)

Electromed's strong financial performance and positive earnings call are the most significant factors contributing to its score. The technical analysis supports a bullish trend, although the valuation suggests the stock may be overvalued. The absence of a dividend yield is a minor drawback. Overall, Electromed is well-positioned within the medical devices industry with potential for continued growth.

Positive Factors

Revenue Growth

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

Balance Sheet Health

A strong cash position with no debt enhances financial flexibility, allowing for strategic investments and resilience against economic downturns.

Operational Efficiency

Operational efficiencies contribute to better margins and profitability, positioning the company for sustained growth and competitive advantage.

Negative Factors

SG&A Expense Increase

Rising SG&A expenses can pressure margins and reduce profitability, potentially impacting the company's ability to invest in growth initiatives.

Non-Homecare Revenue Decline

Declining non-homecare revenue suggests challenges in diversifying income streams, which could affect overall growth prospects and market reach.

Free Cash Flow Decline

A decline in free cash flow growth may limit the company's ability to fund new projects and return capital to shareholders, affecting long-term financial health.

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: 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 24.83 is below the 20-day moving average (MA) of 25.17, above the 50-day MA of 24.79, and above the 200-day MA of 22.96, indicating a bullish trend. The MACD of 0.54 indicates Negative momentum. The RSI at 58.69 is Neutral, neither overbought nor oversold. The STOCH value of 77.29 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	76 Outperform	$221.19M	28.53	19.02%	―	16.05%	29.48%
VMD	76 Outperform	$261.56M	20.81	10.53%	―	18.90%	29.22%
SRTS	64 Neutral	$67.51M	―	-5.71%	―	-13.79%	-132.21%
XTNT	60 Neutral	$87.46M	61.18	3.64%	―	16.88%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CVRX	49 Neutral	$258.17M	―	-91.88%	―	18.44%	25.42%
INGN	48 Neutral	$193.30M	―	-13.27%	―	4.68%	55.37%

Electromed Corporate Events

Electromed Reports Strong Start to Fiscal 2026

Electromed, Inc., based in New Prague, Minnesota, specializes in manufacturing and marketing airway clearance therapy products, notably the SmartVest® Airway Clearance System, catering to patients with compromised pulmonary function.

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.

The most recent analyst rating on (ELMD) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Electromed stock, see the ELMD Stock Forecast page.

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.

The most recent analyst rating on (ELMD) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Electromed stock, see the ELMD Stock Forecast page.

Electromed Reports Record Growth in Earnings Call

Electromed’s latest earnings call reflected a positive sentiment, underscored by strong growth in revenue, profitability, and market presence. The company reported record financial results, strategic initiatives like stock repurchases, and increased awareness for bronchiectasis. Despite challenges such as a decreased cash balance and increased expenses, the overall sentiment remained positive, with significant highlights overshadowing the lowlights.

Electromed Reports Record Fiscal 2025 Results

Electromed, Inc., headquartered in New Prague, Minnesota, specializes in manufacturing and selling airway clearance therapy products, notably the SmartVest® Airway Clearance System, catering to patients with compromised pulmonary function.

Electromed Reports Record Q4 and Fiscal Year 2025 Results

Electromed, Inc. reported record financial results for the fourth quarter and full fiscal year 2025, marking the eleventh consecutive quarter of year-over-year revenue and operating income growth. The company achieved a 17.3% increase in net revenue for Q4 FY 2025, reaching $17.4 million, and a 30.2% rise in operating income to $3.0 million. For the full fiscal year, net revenue grew by 17.0% to $64.0 million, with operating income increasing by 46.8% to $9.7 million. Electromed’s strategic initiatives, including expanding its direct sales team and optimizing manufacturing, contributed to these results, reinforcing its position in the airway clearance space.

The most recent analyst rating on (ELMD) stock is a Buy with a $29.00 price target. To see the full list of analyst forecasts on Electromed stock, see the ELMD Stock Forecast page.