Electromed, Inc. (ELMD)
Valuation Overview•Is Electromed, Inc. Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
High-quality fundamentals with a strong composite quality score of 81/100, backed by robust profitability and solvency.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: High-quality compounder, with profitability as the only relative weakness.
Wall Street sentiment is generally neutral with steady expected earnings growth. This is paired with healthy capital returns, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
ELMD demonstrates strong business quality with robust profitability and healthy margins (highlighted by a massive 26.1% ROIC). This is backed by a fortress balance sheet, holding significant net cash ($15M) and minimal debt risk.
The company is driving exceptional top-line expansion (15.4% 3Y CAGR) paired with highly explosive earnings growth (49.0% EPS 3Y CAGR). The company maintains healthy operational efficiency with a 18.5% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $18.6M | +17.0% | +15.4% | +14.5% | +12.7% | |
| EBITDA | $4.1M | — | +45.3% | — | — | |
| Net Income | $3.0M | +46.3% | +48.4% | — | +21.3% | |
| EPS (Diluted) | $0.35 | +48.3% | +49.0% | +12.8% | +20.8% | |
| Free Cash Flow | $3.3M | +27.8% | — | +28.1% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 78.4% | 76.8% | 76.4% | 77.0% |
| Operating Margin | 18.5% | 11.9% | 10.3% | 11.3% |
| Net Margin | 14.1% | 9.3% | 8.0% | 8.4% |
| FCF Margin | 14.3% | 10.8% | 6.9% | 6.4% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.26 | $0.35 | +34.6% | ||
| Q1'26 | $0.27 | $0.32 | +18.5% | ||
| Q4'25 | $0.22 | $0.25 | +13.6% | ||
| Q3'25 | $0.22 | $0.25 | +13.6% | ||
| Q2'25 | $0.20 | $0.21 | +5.0% | ||
| Q1'25 | $0.18 | $0.22 | +22.2% | ||
| Q4'24 | $0.03 | $0.16 | +433.3% | ||
| Q3'24 | $0.14 | $0.20 | +42.9% |
Total return is +86.5% (1Y), outperforming the benchmark by +61.5%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +41.2% | +31.9% | — |
| 1Y | +86.5% | +61.5% | — |
| 3YCAGR | +49.4% | +27.9% | — |
| 5YCAGR | +28.4% | +16.3% | — |
| 10YCAGR | +25.8% | +11.2% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Electromed, Inc. (ELMD) valuation, health, and returns.
Based on peer relative multiples, Electromed, Inc. appears Slightly expensive versus peers compared to industry peers.
Electromed, Inc. has multiple valuation anchors: Peer Relative Fair Value: $31.56 | Wall Street Analyst Target: $38.00 (implying -1.8% upside). A convergence of these signals offers higher conviction.
Electromed, Inc. displays excellent financial health with a composite quality score of 81/100, supported by a Altman Z-Score of 21.4 (safe zone), Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of 26.1%.
Electromed, Inc. returns capital via buybacks instead of dividends, carrying a 3.1% buyback yield and reducing outstanding shares by -1.6% in the last 12 months.
Electromed, Inc.'s current growth trajectory is Stable. The company achieved +17.0% 1Y revenue growth and +48.3% 1Y EPS growth, compared to its 3Y revenue CAGR of +15.4%.
Wall Street consensus is Buy based on 5 analysts, beating EPS expectations in 83% of recent quarters with a 10-quarter streak. The consensus price target represents a -1.8% change from current levels.
Investment risks for Electromed, Inc. include: -23.3% 1-year max drawdown. Volatility risk is characterized by a beta of 0.92x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.