Electromed, Inc.
Electromed, Inc. Fundamental Analysis
Electromed, Inc. (ELMD) shows strong financial fundamentals with a PE ratio of 22.56, profit margin of 13.06%, and ROE of 20.28%. The company generates $0.1B in annual revenue with strong year-over-year growth of 16.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 78.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ELMD's fundamental strength across five key dimensions:
Efficiency Score
ExcellentELMD demonstrates superior asset utilization.
Valuation Score
ModerateELMD shows balanced valuation metrics.
Growth Score
ExcellentELMD delivers strong and consistent growth momentum.
Financial Health Score
ExcellentELMD maintains a strong and stable balance sheet.
Profitability Score
ModerateELMD maintains healthy but balanced margins.
Key Financial Metrics
Is ELMD Expensive or Cheap?
P/E Ratio
ELMD trades at 22.56 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ELMD's PEG of 2.19 indicates potential overvaluation.
Price to Book
The market values Electromed, Inc. at 4.46 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 17.12 times EBITDA. This signals the market has high growth expectations.
How Well Does ELMD Make Money?
Net Profit Margin
For every $100 in sales, Electromed, Inc. keeps $13.06 as profit after all expenses.
Operating Margin
Core operations generate 16.66 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.28 in profit for every $100 of shareholder equity.
ROA
Electromed, Inc. generates $16.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Electromed, Inc. produces operating cash flow of $9.21M, showing steady but balanced cash generation.
Free Cash Flow
Electromed, Inc. generates strong free cash flow of $9.29M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.11 in free cash annually.
FCF Yield
ELMD converts 4.54% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.19
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.46
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.97
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.86
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
0.25
vs 25 benchmark
How ELMD Stacks Against Its Sector Peers
| Metric | ELMD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.56 | 29.43 | Better (Cheaper) |
| ROE | 20.28% | 800.00% | Weak |
| Net Margin | 13.06% | -20145.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.30 | Strong (Low Leverage) |
| Current Ratio | 4.86 | 4.64 | Strong Liquidity |
| ROA | 16.38% | -17936.00% (disorted) | Strong |
ELMD outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Electromed, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
98.72%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
82.62%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
173.75%
Industry Style: Defensive, Growth, Innovation
High Growth