📊 ELMD Key Takeaways
Is ELMD a Good Investment? Thesis Analysis
Electromed demonstrates strong fundamental health with robust profitability (13.7% net margin), exceptional balance sheet strength (4.86x current ratio, 0.02x debt/equity), and accelerating growth (17% revenue growth, 46% net income growth). The company generates positive free cash flow while maintaining substantial cash reserves, indicating sustainable business quality despite modest FCF margins.
Why Buy ELMD? Key Strengths
- Outstanding profit margins with 78.3% gross margin and 13.7% net margin indicating pricing power and operational efficiency
- Exceptional financial fortress with 4.86x current ratio, minimal debt (0.02x D/E), and $13.8M cash providing strategic flexibility
- Strong earnings acceleration with net income growing 46.3% YoY significantly outpacing 17% revenue growth, demonstrating operating leverage
- Healthy balance sheet with stockholders equity of $45.4M representing 82.6% of total assets
ELMD Investment Risks to Consider
- Modest free cash flow of $2.3M (6.5% FCF margin) relative to net income suggests potential cash conversion challenges or elevated capex needs
- Zero insider buying activity in last 90 days may signal lack of management conviction or limited trading windows
- Small market capitalization and limited public float typical of micro-cap medical device companies creates liquidity and volatility risks
- Dependence on electromedical equipment market cyclicality and regulatory environment for medical devices
Key Metrics to Watch
- Operating cash flow trends and free cash flow margin sustainability
- Gross margin maintenance as revenue scales
- Capital expenditure requirements relative to revenue growth
- Revenue growth trajectory and customer concentration risks
ELMD Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 4.86x current ratio provides a solid financial cushion.
ELMD Profitability Ratios
ELMD vs Healthcare Sector
How Electromed, Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is ELMD Overvalued or Undervalued?
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.
ELMD Balance Sheet & Liquidity
ELMD 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
ELMD Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q1 2024 | $10.7M | $81.0K | $0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ELMD Capital Allocation
ELMD SEC 10-K & 10-Q Filing 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 an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are ELMD's key strengths?
Claude: Outstanding profit margins with 78.3% gross margin and 13.7% net margin indicating pricing power and operational efficiency. Exceptional financial fortress with 4.86x current ratio, minimal debt (0.02x D/E), and $13.8M cash providing strategic flexibility.
What are the risks of investing in ELMD?
Claude: Modest free cash flow of $2.3M (6.5% FCF margin) relative to net income suggests potential cash conversion challenges or elevated capex needs. Zero insider buying activity in last 90 days may signal lack of management conviction or limited trading windows.
What is ELMD's revenue and growth?
Electromed, Inc. reported revenue of $35.8M.
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 $0.56.
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 rating reflects both perspectives for balanced insights.
Is ELMD a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, Electromed, Inc. has a BUY rating with 78% 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 10.8% (sector avg: 15%), net margin of 13.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy ELMD stock in 2026?
Our dual AI analysis gives Electromed, Inc. a combined BUY rating 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 $3.2M, with capital expenditures of $886.0K. FCF margin is 6.5%.
How does ELMD compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 13.7% (avg: 12%), ROE 10.8% (avg: 15%), current ratio 4.86 (avg: 2).