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Electromed
(ELMD)
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Rating:73Outperform
Price Target:
$35.00
▼(-11.03% Downside)
Action:Reiterated
Date:08/27/26
ELMD scores well on fundamentals and earnings momentum (strong profitability, debt-free balance sheet, and upbeat FY2027 guidance), which are the biggest positives. The main drag is technical weakness, with the stock in a pronounced downtrend despite oversold readings. Valuation is reasonable but not clearly cheap based on the provided P/E and no dividend yield data.
Positive Factors
Sustained Revenue Growth
Consistent double-digit growth across 15 consecutive quarters indicates durable demand for SmartVest and expanding commercial reach. Continued home-care growth provides a scalable base for FY2027, although execution will remain important as the sales force expands.
Negative Factors
Single-Product Concentration
Reliance on SmartVest concentrates product, regulatory, reimbursement and execution risk in one platform. An adverse change in clinical perception, payer coverage, product performance or competition could affect most of the company’s revenue until diversification is achieved.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
Consistent double-digit growth across 15 consecutive quarters indicates durable demand for SmartVest and expanding commercial reach. Continued home-care growth provides a scalable base for FY2027, although execution will remain important as the sales force expands.
Read all positive factors
Electromed Key Performance Indicators (KPIs)
Any
Net Revenue by Market
Breaks down Electromed’s sales across different markets and channels (for example, domestic vs. international or hospital vs. homecare), showing where most revenue comes from. Helps investors spot concentration risk if a single market drives results, identify faster-growing regions or channels, and evaluate how exposed the company is to local regulatory changes or competitive pressures.
Breaks down Electromed’s sales across different markets and channels (for example, domestic vs. international or hospital vs. homecare), showing where most revenue comes from. Helps investors spot concentration risk if a single market drives results, identify faster-growing regions or channels, and evaluate how exposed the company is to local regulatory changes or competitive pressures.
Data provided by:
The Fly
The FlyElectromed (ELMD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$325.74M
Dividend YieldN/A
Average Volume (3M)116.30K
Price to Earnings (P/E)23.2
Beta (1Y)0.82
Revenue Growth15.28%
EPS Growth53.24%
CountryUS
Employees195
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)1.37
Shares Outstanding8,366,163
10 Day Avg. Volume115,935
30 Day Avg. Volume116,302
Financial Highlights & Ratios
PEG Ratio0.59
Price to Book (P/B)6.48
Price to Sales (P/S)4.74
P/FCF Ratio36.18
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$47.00Price Target Upside19.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.48
Revenue Forecast (FY)$83.60M
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 in the United States and internationally. The...
How the Company Makes Money
Electromed makes money primarily by selling its airway clearance devices—most notably the SmartVest HFCWO system—to patients and healthcare customers, with the economic driver largely tied to reimbursement for durable medical equipment (DME). The ...
Electromed Earnings Call Summary
Earnings Call Date:Aug 25, 2026
(Q4-2026)
| Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call conveyed strong financial and operational performance: record quarterly and annual revenue, expanding margins, significant operating leverage, robust cash flow, expanded payer coverage and sustained sales rep productivity. Key challenges include a sharp quarter-over-quarter decline in hospital revenue, single-product concentration, small but growing R&D investments, and reliance on the U.S. market. Overall, the positives—consistent double-digit growth, improving profitability, cash generation, and clear go-to-market initiatives—significantly outweigh the identifiable risks and execution items.Positive Updates
Record Quarterly and Annual Revenue
Q4 net revenue of $19.4 million, up 11.6%–12% year-over-year (company cited both 11.6% and 12% in prepared remarks). Full fiscal year 2026 net revenue of $73.8 million, up 15.3% from $64.0 million in fiscal 2025.
Negative Updates
Hospital Channel Weakness in Q4
Hospital revenue declined 29% in Q4. Management attributes this to the inherently longer and less predictable hospital sales cycle and is piloting hospital account liaisons to capture hospital-to-home transitions, but near-term volatility is present.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Quarterly and Annual Revenue
Q4 net revenue of $19.4 million, up 11.6%–12% year-over-year (company cited both 11.6% and 12% in prepared remarks). Full fiscal year 2026 net revenue of $73.8 million, up 15.3% from $64.0 million in fiscal 2025.
Read all positive updates
Company Guidance
Management guided fiscal 2027 to deliver double-digit top-line growth, expanded operating leverage and strong operating cash flow while continuing disciplined investment in the business; they raised the home-care revenue-per-rep target to $1,050,000–$1,150,000 (FY2026 annualized home care revenue per weighted average rep was $1,145,000), plan to expand the sales force from 64 reps to about 67 territories (including 2 hospital account liaisons), and will sustain mid-70%+ gross margins. For context and as a baseline, FY2026 net revenue was $73.8 million (+15.3% YoY) with gross profit $57.9 million (78.5% margin), operating income $13.9 million (18.8% of revenue, +43.7% YoY), pretax income $14.4 million, net income $11.3 million and diluted EPS $1.30 (Q4 EPS $0.39); Q4 net revenue was $19.4 million (+11.6%). Financial posture includes $20.5 million cash, $29.8 million accounts receivable, no debt, $45.1 million working capital, $54 million shareholders’ equity, $9.7 million operating cash flow for the year, $3.9 million of share repurchases, 87% of U.S. covered lives under contract (40 new payer contracts, +6M covered lives), and operational wins such as >45% of orders via Smart Order that shipped on average 5 days faster than fax.Electromed Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
93
Very Positive
Cash Flow
72
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 73.78M | 64.00M | 54.72M | 48.07M | 41.66M |
| Gross Profit | 57.94M | 49.97M | 41.73M | 36.52M | 31.44M |
| EBITDA | 13.88M | 11.46M | 7.88M | 4.70M | 3.63M |
| Net Income | 11.30M | 7.54M | 5.15M | 3.17M | 2.31M |
Balance Sheet | |||||
| Total Assets | 66.27M | 53.80M | 52.23M | 45.81M | 41.36M |
| Cash, Cash Equivalents and Short-Term Investments | 20.45M | 15.29M | 16.08M | 7.37M | 8.15M |
| Total Debt | 0.00 | 198.00K | 87.00K | 161.00K | 41.00K |
| Total Liabilities | 12.29M | 10.59M | 7.69M | 8.14M | 7.19M |
| Stockholders Equity | 53.98M | 43.21M | 44.55M | 37.67M | 34.17M |
Cash Flow | |||||
| Free Cash Flow | 9.66M | 11.09M | 8.67M | -401.00K | -2.21M |
| Operating Cash Flow | 9.66M | 11.39M | 9.07M | 1.31M | -686.00K |
| Investing Cash Flow | -1.30M | -306.00K | -395.00K | -1.72M | -1.52M |
| Financing Cash Flow | -3.20M | -11.88M | 36.00K | -380.00K | -1.52M |
Electromed Technical Analysis
Negative
39.34
Price Trends
41.25
Negative
36.08
Negative
31.29
Positive
Market Momentum
-0.98
Positive
22.53
Positive
14.47
Positive
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 39.34 is below the 20-day moving average (MA) of 40.77, below the 50-day MA of 41.25, and above the 200-day MA of 31.29, indicating a neutral trend. The MACD of -0.98 indicates Positive momentum. The RSI at 22.53 is Positive, neither overbought nor oversold. The STOCH value of 14.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ELMD.
Electromed Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $325.74M | 23.19 | 23.38% | ― | 15.28% | 53.24% | |
67 Neutral | $346.60M | 24.73 | 10.30% | ― | 25.21% | 6.14% | |
54 Neutral | $147.02M | -6.18 | -13.17% | ― | 3.15% | 14.61% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $55.31M | -3.51 | -34.09% | ― | -53.40% | -1719.88% | |
45 Neutral | $89.78M | -1.65 | -152.35% | ― | 11.96% | 6.12% | |
44 Neutral | $44.88M | -3.90 | -23.45% | ― | -14.27% | -132.84% |
* Healthcare Sector Average
ELMD
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31.77
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29.51%
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Electromed Corporate Events
Business Operations and StrategyExecutive/Board ChangesStock BuybackFinancial Disclosures
Electromed Announces Planned CEO Retirement Amid Strong Growth
Positive
Aug 25, 2026
On August 25, 2026, Electromed announced that President and CEO James L. Cunniff plans to retire on or about April 2, 2027, and will step down from the Board at that time. The Board has hired an executive search firm to begin a comprehensive searc...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.