Electromed (ELMD) AI Stock Analysis

• Market Cap: $199.04M
• Dividend Yield: N/A
• Average Volume (3M): 89.93K
• Price to Earnings (P/E): 28.1
• Beta (1Y): 0.59
• Revenue Growth: 16.97%
• EPS Growth: 48.56%
• Country: US
• Employees: 174
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.25
• Shares Outstanding: 8,349,176
• 10 Day Avg. Volume: 100,869
• 30 Day Avg. Volume: 89,928
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 2.76
• Enterprise Value/Gross Profit: 3.53
• Enterprise Value/Ebitda: 16.31
• 1Y Price Target: $30.00
• Price Target Upside: 25.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 70 Outperform
• Price Target: $20.00 ▼(-16.11% Downside)

Electromed's strong financial performance and positive earnings call outlook are somewhat offset by bearish technical signals and a moderate valuation. The company's consistent revenue growth and profitability are significant strengths, but technical analysis indicates potential short-term challenges.

Positive Factors

Revenue Growth

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

Financial Health

A debt-free balance sheet enhances financial flexibility and reduces risk, allowing the company to invest in growth opportunities without financial strain.

Operational Initiatives

Investments in manufacturing and CRM systems are likely to improve efficiency and productivity, supporting long-term operational scalability and competitiveness.

Negative Factors

Non-Homecare Revenue Decline

Declining non-homecare revenue suggests potential challenges in diversifying income streams, which could impact overall revenue stability if not addressed.

SG&A Expense Increase

Rising SG&A expenses can pressure margins and profitability if not matched by revenue growth, potentially impacting long-term financial performance.

Market Competition

While a differentiator, reliance on a direct sales model may limit scalability and expose the company to competitive pressures from larger players with broader distribution networks.

Electromed Business Overview & Revenue Model

Company Description

Electromed, Inc. (ELMD) is a medical device company that specializes in the development, manufacture, and sale of airway clearance products. The company, primarily operating in the healthcare sector, is known for its SmartVest Airway Clearance System, which is designed to help patients with respiratory conditions mobilize secretions from their lungs. Electromed serves a wide range of customers, including home care patients, hospitals, and other healthcare facilities.

How the Company Makes Money

Electromed generates revenue primarily through the sales of its SmartVest Airway Clearance System and related accessories. The company sells its products directly to patients, hospitals, and other healthcare facilities, as well as through distributors. Revenue is also derived from services associated with these products, such as maintenance and support. Electromed's earnings are significantly influenced by its ability to obtain insurance reimbursements for its products, which is a crucial factor in making the products accessible to patients. The company may also engage in strategic partnerships to expand its market reach and distribution capabilities.

Electromed Financial Statement Overview

Summary

Electromed demonstrates strong financial health with 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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	64.00M	64.00M	54.72M	48.07M	41.66M	35.76M
Gross Profit	49.97M	49.97M	41.73M	36.52M	31.44M	27.30M
EBITDA	10.83M	10.83M	7.42M	4.62M	3.60M	3.75M
Net Income	7.54M	7.54M	5.15M	3.17M	2.31M	2.36M
Balance Sheet
Total Assets	53.80M	53.80M	52.23M	45.81M	41.36M	37.11M
Cash, Cash Equivalents and Short-Term Investments	15.29M	15.29M	16.08M	7.37M	8.15M	11.89M
Total Debt	0.00	0.00	87.00K	161.00K	41.00K	87.00K
Total Liabilities	10.59M	10.59M	7.69M	8.14M	7.19M	4.69M
Stockholders Equity	43.21M	43.21M	44.55M	37.67M	34.17M	32.42M
Cash Flow
Free Cash Flow	11.20M	11.09M	8.67M	-401.00K	-2.21M	2.63M
Operating Cash Flow	11.39M	11.39M	9.07M	1.31M	-686.00K	3.08M
Investing Cash Flow	-306.00K	-306.00K	-395.00K	-1.72M	-1.52M	-448.00K
Financing Cash Flow	-11.88M	-11.88M	36.00K	-380.00K	-1.52M	-1.22M

Electromed Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 23.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELMD, the sentiment is Neutral. The current price of 23.84 is below the 20-day moving average (MA) of 24.55, above the 50-day MA of 21.20, and below the 200-day MA of 24.38, indicating a neutral trend. The MACD of 0.85 indicates Positive momentum. The RSI at 52.74 is Neutral, neither overbought nor oversold. The STOCH value of 22.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ELMD.

Electromed Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMD	74 Outperform	262.97M	20.01	10.00%	―	17.11%	45.34%
ELMD	70 Outperform	$199.04M	28.13	17.18%	―	16.97%	48.56%
INGN	60 Neutral	227.95M	-7.96	-20.64%	―	5.15%	73.29%
SRTS	58 Neutral	51.95M	-60.08	11.91%	―	3.30%	-112.70%
LUNG	46 Neutral	72.12M	-1.24	-82.41%	―	18.24%	4.81%
SNWV	43 Neutral	307.76M	-4.16	257.37%	―	57.43%	-155.29%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Electromed Corporate Events

Electromed Reports Strong Q3 2025 Financial Results

Electromed, Inc. reported its fiscal 2025 third-quarter results, highlighting a 13.1% increase in net revenue to $15.7 million and a 16.2% rise in operating income to $2.1 million, marking the tenth consecutive quarter of year-over-year growth. The company also announced a $5 million stock repurchase authorization and emphasized its strategic initiatives, including a Veterans Administration outreach program, which contributed to the growth in its direct homecare business, reflecting its strong market positioning and commitment to value creation for shareholders.

The most recent analyst rating on (ELMD) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Electromed stock, see the ELMD Stock Forecast page.