📊 ELMD Key Takeaways
Is Electromed, Inc. (ELMD) a Good Investment?
Electromed demonstrates exceptional fundamental strength with 78.5% gross margins, 14.5% net margins, and solid free cash flow generation of $5.6M. The balance sheet is fortress-like with minimal debt (0.02x D/E), $17M cash reserves, and 4.91x current ratio, indicating strong financial stability. However, lack of year-over-year revenue visibility limits assessment of growth sustainability.
Electromed shows strong fundamental momentum with 17.0% revenue growth, 46.3% net income growth, and high gross margins of 78.3%, indicating solid operating leverage and pricing power. The balance sheet is exceptionally strong, with ample liquidity, minimal leverage, and very high interest coverage, which supports resilience and optionality for future growth. The main fundamental watchpoint is cash conversion, since free cash flow remains positive but trails reported earnings and margin expansion.
Electromed, Inc. Key Strengths (ELMD)
- Exceptional profitability: 78.5% gross margin, 18.5% operating margin, 14.5% net margin with 16.1% ROE
- Fortress balance sheet: minimal leverage (0.02x D/E), $17M cash position, liabilities only $10.3M against $59.5M assets
- Strong free cash flow generation: $5.6M FCF with 10.4% margin demonstrates quality earnings and operational efficiency
- Strong top-line and bottom-line growth, with revenue up 17.0% YoY and net income up 46.3% YoY
- Excellent profitability profile, including 78.3% gross margin, 17.6% operating margin, and 13.7% net margin
- Very strong financial health, with 4.86x current ratio, only 0.02x debt-to-equity, and $13.79M in cash
ELMD Stock Risks: Electromed, Inc. Investment Risks
- Lack of YoY revenue and net income comparisons prevents assessment of growth momentum and sustainability
- Operating cash flow ($6.7M) lags net income ($7.9M), signaling potential working capital pressures or earnings quality concerns
- Zero insider Form 4 filings in 90 days suggests limited management confidence or execution certainty at current levels
- Free cash flow generation is modest relative to net income, which may signal weaker cash conversion or working capital pressure
- ROE and ROA are solid but not exceptional, suggesting returns on capital still have room to improve
- As a smaller medical device company, sustaining recent margin expansion and growth may be more sensitive to execution and demand variability
Key Metrics to Watch
- Quarter-over-quarter and year-over-year revenue growth trends to validate organic expansion
- Operating cash flow conversion and working capital efficiency as revenue scales
- Capital allocation strategy: dividend, buybacks, or debt reduction given strong FCF and minimal leverage
- Free cash flow and operating cash flow conversion versus net income
- Operating margin sustainability alongside future revenue growth
Electromed, Inc. (ELMD) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 4.91x current ratio provides a solid financial cushion.
ELMD Profit Margin, ROE & Profitability Analysis
ELMD vs Healthcare Sector: How Electromed, Inc. Compares
How Electromed, Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Electromed, Inc. Stock Overvalued? ELMD Valuation Analysis 2026
Based on fundamental analysis, Electromed, Inc. has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Electromed, Inc. Balance Sheet: ELMD Debt, Cash & Liquidity
ELMD Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Electromed, Inc.'s revenue has grown significantly by 79% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.58 reflects profitable operations.
ELMD Revenue Growth, EPS Growth & YoY Performance
ELMD Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $15.7M | $1.5M | $0.21 |
| Q2 2026 | $16.3M | $1.5M | $0.22 |
| Q1 2026 | $14.7M | $1.5M | $0.16 |
| Q3 2025 | $13.9M | $155.0K | $0.17 |
| Q2 2025 | $13.7M | $155.0K | $0.19 |
| Q1 2025 | $12.3M | $155.0K | $0.02 |
| Q3 2024 | $12.1M | $81.0K | $0.12 |
| Q2 2024 | $11.7M | $81.0K | $0.11 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Electromed, Inc. Dividends, Buybacks & Capital Allocation
ELMD SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Electromed, Inc. (CIK: 0001488917)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ELMD
What is the AI rating for ELMD?
Electromed, Inc. (ELMD) has a Combined AI Grade of A from Claude (A) and ChatGPT (A) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ELMD's key strengths?
Claude: Exceptional profitability: 78.5% gross margin, 18.5% operating margin, 14.5% net margin with 16.1% ROE. Fortress balance sheet: minimal leverage (0.02x D/E), $17M cash position, liabilities only $10.3M against $59.5M assets. ChatGPT: Strong top-line and bottom-line growth, with revenue up 17.0% YoY and net income up 46.3% YoY. Excellent profitability profile, including 78.3% gross margin, 17.6% operating margin, and 13.7% net margin.
What are the risks of investing in ELMD?
Claude: Lack of YoY revenue and net income comparisons prevents assessment of growth momentum and sustainability. Operating cash flow ($6.7M) lags net income ($7.9M), signaling potential working capital pressures or earnings quality concerns. ChatGPT: Free cash flow generation is modest relative to net income, which may signal weaker cash conversion or working capital pressure. ROE and ROA are solid but not exceptional, suggesting returns on capital still have room to improve.
What is ELMD's revenue and growth?
Electromed, Inc. reported revenue of $54.4M.
Does ELMD pay dividends?
Electromed, Inc. does not currently pay dividends.
Where can I find ELMD SEC filings?
Official SEC filings for Electromed, Inc. (CIK: 0001488917) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ELMD's EPS?
Electromed, Inc. has a diluted EPS of $0.91.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ELMD's fundamental grade?
Based on our AI fundamental analysis in June 2026, Electromed, Inc. has a A grade with 80% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ELMD stock overvalued or undervalued?
Valuation metrics for ELMD: ROE of 16.1% (sector avg: 15%), net margin of 14.5% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
What is ELMD's AI grade for 2026?
Our dual AI analysis gives Electromed, Inc. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ELMD's free cash flow?
Electromed, Inc.'s operating cash flow is $6.7M, with capital expenditures of $1.0M. FCF margin is 10.4%.
How does ELMD compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 14.5% (avg: 12%), ROE 16.1% (avg: 15%), current ratio 4.91 (avg: 2).