Electromed (ELMD) AI Stock Analysis

• Market Cap: $201.34M
• Dividend Yield: N/A
• Average Volume (3M): 81.58K
• Price to Earnings (P/E): 29.9
• Beta (1Y): 0.57
• Revenue Growth: 15.35%
• EPS Growth: 71.35%
• Country: US
• Employees: 174
• Sector: Healthcare
• Sector Strength: 74
• Industry: Medical - Devices
• EPS (TTM): 0.76
• Shares Outstanding: 8,556,844
• 10 Day Avg. Volume: 74,337
• 30 Day Avg. Volume: 81,582
• PEG Ratio: 0.42
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.55
• Price to Cash Flow (P/CF): 16.80
• P/FCF Ratio: 16.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $37.00
• Price Target Upside: 57.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Electromed's stock is rated highly due to its strong financial performance and positive earnings call results, which highlight robust growth and operational efficiency. The technical analysis suggests mixed signals, but the company's strategic initiatives, including a share buyback program, provide a solid foundation for future performance. The stock's valuation is somewhat high, which could be a consideration for potential investors.

Positive Factors

Financial Health

The company has $16M in cash, $23M in accounts receivable, no debt, and is the final remaining pure-play in the HFCWO space, making it an attractive takeout target for a larger medtech strategy.

Management and Operations

The new management team and board have accomplished growth through product enhancements, sales force productivity, leaner and more efficient reimbursement, market development efforts, and streamlined operations.

Negative Factors

Market Penetration

As the Company continues to gain traction in the underpenetrated bronchiectasis market, multiple expansion is warranted.

Electromed Business Overview & Revenue Model

Company Description

Electromed, Inc. develops, manufactures, markets, and sells airway clearance therapy and related products that apply high frequency chest wall oscillation (HFCWO) therapy in pulmonary care for patients of various ages in the United States and internationally. The company offers SmartVest airway clearance system; SmartVest SQL System that consists of an inflatable therapy garment, a programmable air pulse generator, and a patented single-hose that delivers air pulses from the generator to the garment; and SmartVest Connect, a wireless technology with personalized HFCWO therapy management portal for patients with compromised pulmonary function. It also provides single patient use SmartVest and SmartVest Wrap products for health care providers in the acute care setting. The company offers its products primarily to home health care market for patients with bronchiectasis, cystic fibrosis, and neuromuscular disease. Electromed, Inc. markets its products primarily to physicians and health care providers, as well as directly to patients. The company was incorporated in 1992 and is headquartered in New Prague, Minnesota.

How the Company Makes Money

Electromed generates revenue primarily through the sale of its SmartVest Airway Clearance System. The company markets its products directly to patients, hospitals, and clinics, as well as through a network of distributors. Revenue is largely driven by direct sales efforts, which include patient education and outreach programs to increase awareness and adoption of the SmartVest system. Electromed also benefits from recurring revenue streams through the sale of replacement parts and accessories for the SmartVest system. Key factors contributing to its earnings include a growing market for airway clearance devices, an expanding customer base, and strategic partnerships with healthcare providers to facilitate product adoption and integration into patient care programs.

Electromed Financial Statement Overview

Summary

Electromed demonstrates strong financial health across all aspects. The company showcases 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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
59.63M	54.72M	48.07M	41.66M	35.76M	32.47M
	Gross Profit
45.80M	41.73M	36.52M	31.44M	27.30M	25.20M
	EBIT
8.66M	6.58M	4.01M	2.97M	3.14M	5.12M
	EBITDA
9.07M	7.42M	4.62M	3.60M	3.75M	5.86M
	Net Income Common Stockholders
6.76M	5.15M	3.17M	2.31M	2.36M	4.16M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.16M	16.08M	7.37M	8.15M	11.89M	10.48M
	Total Assets
19.47M	52.23M	45.81M	41.36M	37.11M	33.24M
	Total Debt
3.51M	87.00K	161.00K	41.00K	87.00K	81.20K
	Net Debt
-1.65M	-16.08M	-7.21M	-8.11M	-11.80M	-10.40M
	Total Liabilities
5.57M	7.69M	8.14M	7.19M	4.69M	3.00M
	Stockholders Equity
13.90M	44.55M	37.67M	34.17M	32.42M	30.25M
Cash Flow		Free Cash Flow
11.13M	8.67M	-401.00K	-2.21M	2.63M	3.22M
	Operating Cash Flow
11.30M	9.07M	1.31M	-686.00K	3.08M	4.20M
	Investing Cash Flow
-470.00K	-395.00K	-1.72M	-1.52M	-448.00K	-977.20K
	Financing Cash Flow
-5.03M	36.00K	-380.00K	-1.52M	-1.22M	-548.03K

Electromed Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 23.53 is below the 20-day moving average (MA) of 23.81, below the 50-day MA of 27.07, and below the 200-day MA of 23.55, indicating a bearish trend. The MACD of -1.18 indicates Negative momentum. The RSI at 38.16 is Neutral, neither overbought nor oversold. The STOCH value of 41.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ELMD.

Electromed Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELMD	79 Outperform	$201.34M	29.92	16.11%	―	15.35%	71.35%
TNDM	56 Neutral	$1.17B	―	-33.30%	―	25.74%	57.18%
BLFS	54 Neutral	$1.08B	―	-6.14%	―	-20.89%	83.44%
ICUI	53 Neutral	$3.72B	―	-5.76%	―	5.28%	-292.14%
Sector *	48 Neutral	$6.36B	1.28	-45.04%	2.64%	19.24%	1.69%
SENS	43 Neutral	$392.74M	―	-166.29%	―	0.37%	-20.49%

Electromed Corporate Events

Electromed Announces $5 Million Share Buyback Program

On March 6, 2025, Electromed’s board of directors authorized a new share repurchase program, allowing the company to buy back up to $5.0 million of its common stock. This move, announced on March 10, 2025, reflects the company’s confidence in its business strength and aims to enhance shareholder value by utilizing excess cash reserves for stock repurchases, while maintaining financial flexibility for future growth.

Electromed Reports Record Q2 2025 Financial Performance

In the second quarter of fiscal 2025, Electromed, Inc. reported record financial performance with a net revenue increase of 18.7% to $16.3 million and a net income rise to $2.0 million. The company attributes its growth to strategic initiatives, a direct-to-patient model, and efficient operations, alongside expanded sales efforts and educational campaigns, positioning it strongly in the MedTech sector.