Start here if you're new
what it is
Electromed sells devices that help patients clear mucus from their lungs at home and in hospitals.
how it gets paid
Last year Electromed made $64M in revenue.
why it's growing
Revenue grew 17.0% last year. Revenue was up 89% vs. prior year in the latest quarter.
what just happened
Electromed posted $36M in quarterly revenue and $0.56 EPS, with 78.3% gross margin.
At a glance
B balance sheet — gets the job done, barely
55/100 earnings predictability — expect surprises
31.0x trailing p/e — you're paying up for this one
17.4% return on capital — nothing to write home about
$0.85 fy2025 eps est
xvary composite: 69/100 — average
What they do
Electromed sells devices that help patients clear mucus from their lungs at home and in hospitals.
Electromed sells SmartVest, and the FDA cleared the newest system in 2022. That is a real gate, not a buzzword. Switching costs (leaving is painful because setup and approval already happened) keep patients from bouncing away. A 177-person company turned that into $64M of annual revenue.
How they make money
$64M
annual revenue · their business grew +17.0% last year
total revenue
$64M
+17.0%
The products that matter
airway clearance device system
SmartVest Airway Clearance System
$44.8M · 70% of revenue
This is the franchise. Device sales generated $44.8M last year, and the latest quarter reached a record $18.9M in revenue. If you own ELMD, this is the product carrying the stock.
the franchise
repeat-purchase supply layer
Disposables & Accessories
$19.2M · 30% of revenue
This segment grew 19% last year to $19.2M. It matters because each new device placement creates a smaller, steadier revenue stream after the first sale.
repeat revenue
Key numbers
78.3%
gross margin
You keep 78 cents of every sales dollar before overhead. Most device makers would like that problem.
16.9%
operating margin
You keep 17 cents after running the business. That is a wide gap versus low-margin med-tech names.
$64M
annual sales
This is a small company. A 5% miss here is $3.2M, which is real money at this scale.
31.0x
trailing p/e
You are paying 31 times earnings. That is a premium price for a $64M revenue business.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 1 — safer than 95% of stocks
- price stability 35 / 100
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for ELMD right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Electromed posted $36M in quarterly revenue and $0.56 EPS, with 78.3% gross margin.
Revenue was up 89% vs. prior year in the latest quarter. Gross margin held at 78.3%, which says pricing stayed firm.
$36M
revenue
$0.56
eps
78.3%
gross margin
the number that mattered
The big number is $36M. That is 56% of the full-year $64M in one quarter, which tells you demand is not sleepy.
source: company earnings report, 2026
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What could go wrong
the #1 risk is SmartVest product concentration — the device line produced $44.8M, accessories added $19.2M, and both depend on the same franchise.
med
One franchise still means one point of failure
SmartVest device sales were $44.8M and accessories added $19.2M. That looks like two lines on a chart. It is still one installed base underneath.
If SmartVest demand slips or reimbursement gets tougher, effectively all $64M of revenue feels it.
med
Bigger device companies have more room to get aggressive
Electromed competes against larger players such as Hill-Rom. Bigger sales teams and broader product catalogs can pressure pricing or make it harder to win new referrals.
That matters because the current 78.3% gross margin is part of why the stock gets a premium multiple.
med
The valuation leaves little room for a flat patch
At 31.0x trailing earnings and roughly 33.9x forward earnings, the stock is priced for continued execution. It is not priced like a turnaround or an ignored asset.
If growth falls into single digits, you can get hit twice — slower earnings and a smaller multiple.
A disruption to the SmartVest franchise would not dent one segment. It would pressure the full $64M revenue base and challenge the premium valuation at the same time.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
gross margin holding near 78.3%
That margin is carrying a lot of the story. If it drops for more than a quarter, the case for a premium multiple weakens fast.
trend
quarter 14 of growth
The latest quarter made it 13 straight periods of growth from a year ago. One more extends the narrative. A break changes the conversation.
risk
any sign the SmartVest franchise is losing momentum
This company does not have another major revenue engine waiting behind the curtain. Weak device placements would matter right away.
calendar
next earnings report
This is the next real test. After $18.9M of revenue and $0.32 of EPS, investors will want another clean print, not just a decent one.
Analyst rankings
earnings predictability
55 / 100
Middle of the pack. in human-speak, analysts see improvement, but they do not expect every quarter to land smoothly.
risk rank
1
This score says the stock screens as safer than 95% of names on that measure. For a small cap, that is an unusual offset to the single-product risk.
street target
$37.40
That sits about 29.6% above the current $28.85 share price. Targets follow the story, but they tell you the street still thinks the run has room.
source: institutional data
Institutional activity
institutional ownership data for ELMD is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$29
current price
n/a
target midpoint · n/a from current
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