📊 EMED Key Takeaways
Is EMED a Good Investment? Thesis Analysis
EMED is a financially distressed micro-cap company with severe operational and balance sheet deterioration. The company operates with significant losses across all profitability metrics, negative stockholders' equity of -$4.0M, and critically depleted liquidity with a current ratio of 0.07x. Negative operating cash flow and continued operating losses indicate the business is not self-sustaining.
Why Buy EMED? Key Strengths
- Strong gross margin of 73.9% indicates underlying product demand and pricing power if operational losses can be controlled
- Revenue growth of 17.3% YoY shows market demand exists for the company's medical devices
- Minimal capital expenditure requirements suggest asset-light business model
EMED Investment Risks to Consider
- Negative stockholders' equity of -$4.0M indicates technical insolvency and high bankruptcy risk
- Critical liquidity crisis with only $34.8K cash against $4.6M total liabilities and current ratio of 0.07x - cannot meet near-term obligations
- Massive operating losses (-$787.8K) and net loss (-$1.3M) far exceed revenue; operating margin of -138.1% indicates fundamental business model failure
- Negative operating cash flow of -$80.3K indicates cash burn despite positive gross profit, suggesting uncontrolled SG&A or other operating expenses
- Long-term debt of $1.6M with negative equity creates debt covenant risks and refinancing concerns
- No insider buying activity in last 90 days signals lack of management confidence
Key Metrics to Watch
- Cash position and burn rate - company may face liquidity crisis within months
- Operating expense reduction and path to operating cash flow positivity
- Ability to restructure debt or raise capital to address negative equity position
EMED Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
EMED Profitability Ratios
EMED vs Healthcare Sector
How Electromedical Technologies, Inc compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is EMED Overvalued or Undervalued?
Based on fundamental analysis, Electromedical Technologies, 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.
EMED Balance Sheet & Liquidity
EMED 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Electromedical Technologies, Inc's revenue has grown significantly by 63% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.03 indicates the company is currently unprofitable.
EMED Growth Metrics (YoY)
EMED Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2024 | $237.6K | $231.2K | $0.00 |
| Q1 2024 | $290.2K | -$456.1K | $0.00 |
| Q3 2023 | $279.6K | -$376.7K | $0.00 |
| Q2 2023 | $225.3K | -$456.1K | $0.00 |
| Q1 2023 | $221.9K | -$456.1K | $0.00 |
| Q3 2022 | $279.6K | -$535.9K | $-0.01 |
| Q2 2022 | $203.0K | -$535.9K | $0.00 |
| Q1 2022 | $166.4K | -$1.1M | $-0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
EMED Capital Allocation
EMED SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Electromedical Technologies, Inc (CIK: 0001715819)
📋 Recent SEC Filings
❓ Frequently Asked Questions about EMED
What is the AI rating for EMED?
Electromedical Technologies, Inc (EMED) has an AI rating of STRONG SELL with 95% confidence, based on fundamental analysis of SEC EDGAR filings.
What are EMED's key strengths?
Claude: Strong gross margin of 73.9% indicates underlying product demand and pricing power if operational losses can be controlled. Revenue growth of 17.3% YoY shows market demand exists for the company's medical devices.
What are the risks of investing in EMED?
Claude: Negative stockholders' equity of -$4.0M indicates technical insolvency and high bankruptcy risk. Critical liquidity crisis with only $34.8K cash against $4.6M total liabilities and current ratio of 0.07x - cannot meet near-term obligations.
What is EMED's revenue and growth?
Electromedical Technologies, Inc reported revenue of $570.4K.
Does EMED pay dividends?
Electromedical Technologies, Inc does not currently pay dividends.
Where can I find EMED SEC filings?
Official SEC filings for Electromedical Technologies, Inc (CIK: 0001715819) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is EMED's EPS?
Electromedical Technologies, Inc has a diluted EPS of $0.00.
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 EMED a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, Electromedical Technologies, Inc has a STRONG SELL rating with 95% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is EMED stock overvalued or undervalued?
Valuation metrics for EMED: ROE of N/A (sector avg: 15%), net margin of -233.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy EMED stock in 2026?
Our dual AI analysis gives Electromedical Technologies, Inc a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is EMED's free cash flow?
Electromedical Technologies, Inc's operating cash flow is $-80.3K, with capital expenditures of $0.0. FCF margin is -14.1%.
How does EMED compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -233.1% (avg: 12%), ROE N/A (avg: 15%), current ratio 0.07 (avg: 2).