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Electromed, Inc. (ELMD) stock analysis

ELMDNYSEElectromedical & Electrotherapeutic ApparatusFiscal year ends June 30
Financials through Q1 FY2027, quarter ended Sep 30, 2026Last filing: 10-Q on Nov 10, 2026Score 21/3027% below fair value
$24.96−2.22 (-8.17%)

Close on Nov 11, 2026Market cap $208.82MP/E 18.1Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value5Growth5Performance5Health6Dividend0

Solid21 of 30 checks passed

Electromed passes 21 of the 30 checks behind our score; 6 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
5/6
Growth
5/6
Past performance
5/6
Financial health
6/6
Dividend
0/6

What stands out

  • Margin of safety over 20%

    The price is 26.8% below fair value, more than the 20% cushion we look for.

  • Trading below fair value

    The share price of $24.96 is below our fair value estimate of $34.08.

  • Return on capital over 10%

    Return on invested capital was 34.3%, above the 10% that usually covers the cost of capital.

  • No debt

    Electromed has no borrowings on its latest balance sheet.

What to watch

  • Return on equity under 15%

    Return on equity was 24.5% over the last twelve months and averaged 13.7% over five years; we look for 15% on both.

  • P/B above the industry

    Electromed's price-to-book of 3.98 is above the Surgical, Medical, and Dental Instruments and Supplies median of 3.22.

  • No dividend

    Electromed has not paid a dividend in the last twelve months.

Valuation5/6

  • P/E below its 5-year median

    Electromed's P/E of 18.1 is below its own 5-year median of 33.4.

  • P/E below the industry

    Electromed's P/E of 18.1 is below the Surgical, Medical, and Dental Instruments and Supplies median of 27.7.

  • EV/EBITDA below its 5-year median

    Electromed's EV/EBITDA of 13.1 is below its 5-year median of 23.0.

  • P/B above the industry

    Electromed's price-to-book of 3.98 is above the Surgical, Medical, and Dental Instruments and Supplies median of 3.22.

  • Trading below fair value

    The share price of $24.96 is below our fair value estimate of $34.08.

  • Margin of safety over 20%

    The price is 26.8% below fair value, more than the 20% cushion we look for.

Growth5/6

  • Revenue growing 10%+ a year

    Revenue grew 15.4% a year over the last three fiscal years.

  • EPS growing 10%+ a year

    Diluted EPS grew 53.4% a year over the last three fiscal years.

  • Earnings growth accelerating

    Net income grew 45.5% over the last twelve months, against a 5-year average of 36.8% a year.

  • Growing faster than the industry

    Revenue grew 14.1% over the last twelve months; the Surgical, Medical, and Dental Instruments and Supplies median is 11.0%.

  • Company guidance

    No outlook found in earnings releases from the last twelve months.

  • Gross margin improving

    Gross margin was 79.0% over the last twelve months, against 78.0% a year earlier.

Past performance5/6

  • Return on equity under 15%

    Return on equity was 24.5% over the last twelve months and averaged 13.7% over five years; we look for 15% on both.

  • Return on capital over 10%

    Return on invested capital was 34.3%, above the 10% that usually covers the cost of capital.

  • Return on equity above the industry

    Electromed's return on equity of 24.5% is above the Surgical, Medical, and Dental Instruments and Supplies median of -31.3%.

  • Earnings grew over 5 years

    Net income grew 36.8% a year on average over the last five fiscal years.

  • Net margin above its 5-year average

    Net margin was 15.8% over the last twelve months, against a 5-year average of 9.7%.

  • Net margin above the industry

    Electromed's net margin of 15.8% is above the Surgical, Medical, and Dental Instruments and Supplies median of -14.1%.

Financial health6/6

  • No debt

    Electromed has no borrowings on its latest balance sheet.

  • Debt not rising

    With no debt today, leverage cannot have risen.

  • Debt covered by cash flow

    There is no debt to cover.

  • Interest well covered

    No meaningful interest expense to cover.

  • Short-term assets cover short-term debts

    Current assets are 7.19 times current liabilities.

  • Low bankruptcy risk

    The Altman Z-score is 18.06; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    Electromed has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$34.08

The share price is 27% below this estimate.

20%+ below
Near fair value
20%+ above
$24.96Price$34.08Fair value
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
P/E30.5×33.4×27.7×$42.1540%
EV/EBITDA19.9×23.0×16.7×$36.8035%
P/B3.3×3.3×3.2×$20.4210%
Earnings power7.4% cost of equity––$15.2915%
Fair value$34.08100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Own 5-year median 33.4
  • Surgical, Medical, and Dental Instruments and Supplies median 27.7

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

High risk

Average value traded per day
$1.53M
Value traded per 1% price move
$1.18M

Downside

High risk

Typical loss in a bad month
35.6%
Volatility (annualized)
51%
Sharpe ratio, 1 year
-0.03
Beta to the S&P 500 (5Y)
0.50

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2012 to 2026

Gross margin

78.5%+2.2 pts over 5 years

Operating margin

18.8%+10.0 pts over 5 years

Net margin

15.3%+8.7 pts over 5 years

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