Electromed, Inc. (ELMD)
AMEXHealth CareMedical - DevicesSnapshot 2026-09-04
$28.00+1.41%
Close 2026-09-04 · 1-day change
AMEXHealth CareMedical - DevicesSnapshot 2026-09-04
Intact: The reason to own it still holds.
Electromed grows revenue about 16% a year. Profit margins stay strong near 15%. The company has beaten earnings estimates multiple times recently. It also has a $10 million share buyback program.
Growth could slow below analyst expectations. Profit margins might compress from cost pressures. The company has some debt from a recent credit agreement.
The price is about 26% above our fair value near $36. Analysts expect about 17% revenue growth. Our view aligns with this, supporting a justified valuation.
Breaks if: buyback program is cancelled or materially reduced
Breaks if: EPS falls below $1.30 in FY27
operating margin falls below 13% in Q4 FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a stable growth opportunity with a focus on improving revenue and operating margins. The current thesis is supported by strong recent financial performance and management's commitment to growth, although risks remain elevated.
The market appears to have priced in a neutral valuation, with expectations slightly below peers. There is a low level of fragility in the execution quality, suggesting that while the stock is not expensive, it is also not overly cheap compared to its industry.
Management is on track to achieve double-digit revenue growth and improve operating margins, as evidenced by recent financial results. However, there is a near-term risk of missing earnings expectations, particularly given the company's smaller size and recent history of volatility.
The future performance of ELMD hinges on several factors, including guidance updates from management and broader economic indicators like job reports. Additionally, the performance of major healthcare sector companies could influence ELMD's momentum.
The most important moves since the prior daily snapshot.
Signal changed from 'favorable' to 'mild_favorable'.
Yes, our read has weakened. The company reported a revenue decline in its hospital channel. This decline poses a risk to overall revenue growth. However, home care revenue is still expected to grow. Management indicated strong performance in the home care segment. A sharp drop in the stock price suggests a potential repricing of the thesis.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: revenue falls below $66 million in Q4 FY26
Overall, ELMD's fundamentals are strong, but external factors could impact its trajectory. Not investment advice.