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Buy Day today: Poor Neutral (54) Good Mixed market breadth · no major macro event

Electromed Inc (ELMD)

Healthcare Medical Devices
38.40 $
Closing price · As of: 24. Jul 2026
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Read the Full Deep Dive
Electromed: A 78 Percent Gross Margin, Zero Debt — and Thirteen Months Before the Money Arrives

Some companies check every box. Electromed has sold the same vest since 2000 — a device that shakes mucus loose from the lungs of chronically ill patients — at a gross margin of 78.5 percent for the nine months ended March 31, 2026, without a dollar of financial debt, while lifting revenue from $48.1 million to $64.0 million in two fiscal years. The quarterly report filed May 12, 2026, also carries the line no ratio displays: $28,251,000 of receivables, and a normal operating cycle of roughly thirteen months, because approximately 96 percent of homecare revenue comes from capped installment arrangements with health insurers. Not investment advice — just the question of how long a company can wait for its own money before the waiting becomes the business model.

Appears in These Scanners

This stock currently matches 13 of our scanner strategies — each hit links to the scanner.

Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners

Basics

Market Cap
0.3$B
Shares Outstanding
8Mio.
Float
82.7%
Beta
0.5

Performance

Perf. 1M
7.50%
Perf. 3M
72.00%
Perf. 6M
47.00%
YTD Performance (%)
32.30%
52-Week-High Distance
-2.3%

Valuation

P/E
35.4
Forward P/E
20.2
PEG
0.4
P/B
6.7
P/S
4.6
EV/EBITDA
25.1
Price/FCF
32.6

Profitability

Gross Margin
78.4%
EBIT Margin
Net Margin
14.1%
Return on Equity
21.7%
Return on Assets
14.9%

Balance Sheet & Safety

Equity Ratio
Debt/Equity
fortress balance sheet
Altman Z
15.58
Piotroski
7 out of 9

Growth

Sales Growth Last Quarter
18.40%
EPS Growth Last Quarter
66.70%
Sales Growth (Year)
16.97%
Forward Sales Growth
13.59%
Forward EPS Growth

Quality & Screener

Stage
2
RS Rating
87
EPS Rating
81
Piotroski
7 out of 9
Fundamental Rating
A (+56 out of 100)
fortress balance sheet
Altman Z
15.58

AI Rating

Neutral

Die sechs ausgewerteten SEC-Berichte (vier 10-Q, zwei 10-K, eingereicht 27.08.2024 bis 12.05.2026) enthalten keinen einzigen Treffer zu künstlicher Intelligenz oder maschinellem Lernen — weder als Umsatzquelle noch als operatives Werkzeug noch als Risikofaktor; das einzige Vorkommen des Wortes „algorithm“ bezieht sich auf einen klinischen Behandlungspfad bei Bronchiektasen.

View the full file — quotes, sources, reviewed filings

Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.

Sales Per Quarter ($M)
2024: Q4 · 16.3 $M Q4 2025: Q1 · 15.7 $M Q1 2025: Q2 · 17.4 $M Q2 2025: Q3 · 16.9 $M Q3 2025: Q4 · 18.9 $M Q4 2026: Q1 · 18.6 $M Q1
Earnings Per Share Per Quarter ($)
2024: Q4 · 0.24 $ Q4 2025: Q1 · 0.23 $ Q1 2025: Q2 · 0.27 $ Q2 2025: Q3 · 0.26 $ Q3 2025: Q4 · 0.33 $ Q4 2026: Q1 · 0.36 $ Q1
Net Margin Per Quarter (%)
2024: Q4 · 12.1 % Q4 2025: Q1 · 12.1 % Q1 2025: Q2 · 12.7 % Q2 2025: Q3 · 12.6 % Q3 2025: Q4 · 14.6 % Q4 2026: Q1 · 16.2 % Q1
Operating Cash Flow Per Quarter ($M)
2024: Q4 · 3.2 $M Q4 2025: Q1 · 2.1 $M Q1 2025: Q2 · 3.9 $M Q2 2025: Q3 · 0.2 $M Q3 2025: Q4 · 3.0 $M Q4 2026: Q1 · 3.5 $M Q1
Free Cash Flow Per Quarter ($M)
2024: Q4 · 2.9 $M Q4 2025: Q1 · 2.3 $M Q1 2025: Q2 · 3.7 $M Q2 2025: Q3 · -0.1 $M Q3 2025: Q4 · 3.3 $M Q4 2026: Q1 · 3.3 $M Q1
Sales Growth vs. Year-Ago Quarter (%)
2024: Q4 · 18.7 % Q4 2025: Q1 · 13.1 % Q1 2025: Q2 · 17.3 % Q2 2025: Q3 · 15.1 % Q3 2025: Q4 · 16.3 % Q4 2026: Q1 · 18.4 % Q1
EPS Growth vs. Year-Ago Quarter (%)
2024: Q4 · 17.6 % Q4 2025: Q1 · 26.7 % Q1 2025: Q2 · 20.6 % Q2 2025: Q3 · 44.9 % Q3 2025: Q4 · 40.3 % Q4 2026: Q1 · 58.8 % Q1
Price Change in Quarter (%)
2024: Q4 · 37.6 % Q4 2025: Q1 · -19.3 % Q1 2025: Q2 · -7.8 % Q2 2025: Q3 · 11.6 % Q3 2025: Q4 · 18.6 % Q4 2026: Q1 · -19.6 % Q1

Quarterly Figures

Quarterly Figures
Quarter EPS (Earnings Per Share) EPS YoY (%) Sales ($M) Sales YoY (%) Net Margin (%) OCF ($M) FCF ($M)
2024: Q4 0.24 17.60 16 18.70 12.10 3 3
2025: Q1 0.23 26.70 16 13.10 12.10 2 2
2025: Q2 0.27 20.60 17 17.30 12.70 4 4
2025: Q3 0.26 44.90 17 15.10 12.60 0 0
2025: Q4 0.33 40.30 19 16.30 14.60 3 3
2026: Q1 0.36 58.80 19 18.40 16.20 4 3
What Do These Terms Mean?
EPS (Earnings Per Share):
Quarterly profit divided by the total share count — how much of the profit works out to a single share.
YoY (Year over Year):
Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
Sales:
All revenue for the quarter, before any costs are deducted — the top line of the income statement.
Net Margin:
What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
OCF (Operating Cash Flow):
The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
FCF (Free Cash Flow):
Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.

Assessment: Opportunities & Risks

Business and growth

Revenue rose from $48.067 million in fiscal 2023 to $54.716 million in fiscal 2024 and $64.000 million in fiscal 2025, then added another 16.6 percent to $54.359 million over the nine months ended March 31, 2026. The driver is not acquisitions but more sales representatives and higher net revenue per approval — of the $2.630 million of additional third-quarter homecare revenue, $1.959 million came from higher volume.

Balance sheet

As of March 31, 2026, total assets of $59.474 million faced only $10.307 million of liabilities, none of it interest-bearing. Cash stood at $16.985 million and shareholders' equity at $49.167 million. An Altman Z-Score of 15.58 and a Piotroski score of 7 out of 9 (data as of July 24, 2026) confirm the picture. The $10 million credit line was undrawn.

Earnings quality and cash conversion

Margins have improved for years — gross margin from 76.0 to 78.5 percent, operating margin from 8.3 to 18.5 percent. Cash has not kept pace: over the nine months ended March 31, 2026, $7.900 million of net income produced only $6.671 million of operating cash, because receivables rose $3.591 million. In the prior-year period the relationship ran the other way ($5.333 million against $7.534 million).

Dependence on one product and one reimbursement code

The quarterly report as of March 31, 2026, states that Electromed has one active product and one business segment. In the U.S. home market the price of that product is effectively set through billing code E0483; the Medicare allowable was approximately $15,000 per device per the annual report. In the third quarter of fiscal 2026, 49.4 percent of homecare revenue rested on government programs, up from 47.3 percent in fiscal 2025.

Revenue built on estimates

Approximately 96 percent of homecare revenue comes from capped installment arrangements whose final amount is estimated — with homecare at 90.1 percent of revenue, that is roughly 86 percent of company revenue. The fiscal 2025 annual report notes that payment patterns held steady over five years and that prior-period estimate revisions were immaterial. That reduces the risk. It does not remove it.

Valuation

As of July 24, 2026, market capitalization of roughly $333 million equaled about 4.6 times trailing twelve-month revenue and roughly 33 times earnings, with the stock 0.4 percent below its all-time high. Worth noting alongside it: the company's own buying history. Repurchases ran through January 2026 at an average of $25.79 and then stopped — $6.082 million of the authorization stayed undrawn.

Bottom Line

Electromed has one of the cleanest small balance sheets on a U.S. exchange: no financial debt, a 78.5 percent gross margin, three years of rising profit, $16.985 million of cash and a product that demonstrably helps patients. The price of that model sits in the same balance sheet: $28.251 million of receivables, a normal operating cycle of roughly thirteen months and approximately 96 percent of homecare revenue from capped installment arrangements whose amount is estimated. Add one product, one reimbursement code and 49.4 percent of homecare revenue from government programs in a year when those programs are being cut. Buy this and you are buying quality with a very long wire between revenue and cash. Not investment advice.

Worth Noting:
  • Electromed reached our research list through our in-house stock scanner: on July 26, 2026, the stock appeared in the U.S. selection of the "Fundamental Rank (A / A+)" screen (38 U.S. hits, 25 of them listed on the page) and on twelve screens in total, including "Quality Growth", "Professionals 80%", "Stan Weinstein: Stage 2", "Power Trend" and "Near 52-Week High". These lists are recalculated daily.
  • Timing note: Electromed's fiscal year ends June 30. "Fiscal 2025" means July 1, 2024, through June 30, 2025; the most recent interim report evaluated here is the third quarter of fiscal 2026, as of March 31, 2026, filed May 12, 2026. All filings through July 2, 2026, were reviewed; after the quarterly report there were only insider filings (Form 4), notices of proposed sale (Form 144) and the annual conflict minerals disclosure (Form SD dated May 29, 2026).
  • Valuation anchors are dated and evergreen: the $42.30 reference is not a daily quote but the price documented in an insider filing (Form 4) dated June 30, 2026. For comparison, the CFO sold between $36.34 and $37.11 on June 4, 2026, and the CEO between $36.25 and $37.77 on June 8, 2026. The company itself last repurchased shares in January 2026 at $27.72. This analysis is evergreen; daily prices are not an investment case.

About the Company

Electromed, Inc. entwickelt, fertigt, vermarktet und verkauft Produkte zur Atemwegsreinigung und verwandte Produkte, die hochfrequente Brustwandoszillation (HFCWO) in der pneumologischen Versorgung von Patienten in den USA und international anwenden.

Employees177
HeadquartersNew Prague, MN
Websitesmartvest.com
IPO Date13. Aug 2010
Next Earnings25. Aug 2026

Management

Management
Name Title Birth Year
James L. Cunniff President, CEO & Director 1966
Bradley M. Nagel CFO, Treasurer & Secretary 1982

Executives per the latest required filings; titles kept in their original language. Source: fundamental data.

Chart

Interactive price chart (TradingView).

Data as of: July 24, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)

Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.

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