Electromed, Inc. (ELMD)
Electromed, Inc. specializes in developing, manufacturing, and marketing airway clearance therapy products, primarily the SmartVest system, for patients with compromised pulmonary function. Their focus is on the home healthcare market, targeting conditions like bronchiectasis and cystic fibrosis.
Company Overview
Electromed (ELMD) offers a compelling investment in the respiratory therapy market, driven by its proprietary SmartVest HFCWO technology, strong gross margins of 78.0%, and a strategic focus on the expanding home healthcare sector, positioning it for sustained growth and profitability.
Investment Thesis
Electromed presents a compelling investment opportunity due to its established position in the HFCWO therapy market and strong growth potential. The company's focus on the home healthcare market, coupled with its innovative SmartVest technology, positions it to capitalize on the increasing prevalence of chronic respiratory diseases. With a gross margin of 78.0% and a profit margin of 12.4%, Electromed demonstrates strong profitability. The company's relatively low beta of 0.26 suggests lower volatility compared to the broader market. Key growth catalysts include expanding market penetration in existing and new geographic regions, increasing adoption of SmartVest Connect, and continued innovation in airway clearance therapy. The company's P/E ratio of 29.44 reflects investor confidence in its future earnings potential. As of February 2026, Electromed's market cap stands at $0.24 billion, indicating significant upside potential as the company executes its growth strategy.
Key Highlights
- Gross margin of 78.0% demonstrates strong pricing power and efficient cost management.
- Profit margin of 12.4% indicates healthy profitability in the medical device sector.
- Market capitalization of $0.24 billion reflects the company's current valuation and growth potential.
- P/E ratio of 29.44 suggests investor confidence in future earnings growth.
- Beta of 0.26 indicates lower volatility compared to the overall market, making it a potentially stable investment.
Competitors
Strengths
- Proprietary SmartVest HFCWO technology.
- Strong gross margins.
- Focus on the growing home healthcare market.
- Established relationships with healthcare providers.
Weaknesses
- Relatively small market capitalization.
- Dependence on reimbursement from insurance providers.
- Limited geographic diversification.
- Competition from larger medical device companies.
Catalysts
- Upcoming: Expansion into new international markets by Q4 2026, increasing revenue streams.
- Ongoing: Increasing adoption of SmartVest Connect platform, enhancing patient engagement and therapy management.
- Ongoing: Continued innovation in airway clearance therapy technologies, maintaining competitive edge.
Risks
- Potential: Changes in reimbursement policies could negatively impact revenue.
- Potential: Technological advancements by competitors could erode market share.
- Ongoing: Economic downturn could affect healthcare spending and demand for products.
- Potential: Regulatory changes could impact the medical device industry and increase compliance costs.
Growth Opportunities
- Expansion into New Geographic Markets: Electromed has the opportunity to expand its sales and marketing efforts into new geographic regions, both domestically and internationally. By targeting countries with a high prevalence of chronic respiratory diseases and limited access to advanced airway clearance therapies, Electromed can significantly increase its customer base and revenue. This expansion could involve establishing partnerships with local distributors, participating in international medical conferences, and adapting its products to meet the specific needs of different markets. The global market for respiratory devices is estimated to reach billions of dollars, providing a substantial opportunity for Electromed to capture additional market share.
- Increased Adoption of SmartVest Connect: The SmartVest Connect platform offers a significant growth opportunity for Electromed. By promoting the benefits of remote therapy management and personalized treatment plans, Electromed can drive increased adoption of this technology among patients and healthcare providers. This can lead to improved patient adherence, better clinical outcomes, and increased recurring revenue for the company. The market for telehealth and remote patient monitoring is rapidly expanding, driven by advancements in technology and a growing demand for convenient and accessible healthcare solutions. Electromed is well-positioned to capitalize on this trend with its SmartVest Connect platform.
- Development of New Airway Clearance Therapies: Electromed can invest in research and development to create new and innovative airway clearance therapies that address unmet needs in the market. This could involve developing devices that are more portable, user-friendly, or effective for specific patient populations. By staying at the forefront of technological advancements, Electromed can maintain its competitive edge and attract new customers. The market for respiratory therapy devices is constantly evolving, with new technologies and approaches emerging regularly. Electromed's commitment to innovation will be crucial for its long-term success.
- Strategic Partnerships and Acquisitions: Electromed can pursue strategic partnerships and acquisitions to expand its product portfolio, market reach, and technological capabilities. This could involve partnering with companies that offer complementary respiratory products or acquiring companies with innovative technologies in the airway clearance space. By leveraging the strengths of other organizations, Electromed can accelerate its growth and enhance its competitive position. The medical device industry is characterized by a high level of consolidation, with companies constantly seeking opportunities to expand their offerings and market share. Electromed's strategic partnerships and acquisitions can play a key role in its growth strategy.
- Focus on Direct-to-Patient Marketing: Electromed can increase its focus on direct-to-patient marketing to raise awareness of the SmartVest system and its benefits among individuals with chronic respiratory diseases. This could involve developing educational materials, conducting online marketing campaigns, and participating in patient advocacy events. By reaching patients directly, Electromed can bypass traditional healthcare channels and drive increased demand for its products. The market for direct-to-consumer healthcare products and services is rapidly growing, driven by the increasing availability of information online and a growing desire among patients to take control of their health.
Opportunities
- Expansion into new geographic markets.
- Increased adoption of SmartVest Connect.
- Development of new airway clearance therapies.
- Strategic partnerships and acquisitions.
Threats
- Changes in reimbursement policies.
- Technological advancements by competitors.
- Economic downturn affecting healthcare spending.
- Regulatory changes impacting the medical device industry.
Competitive Advantages
- Patented SmartVest technology provides a competitive advantage.
- Established brand reputation in the airway clearance therapy market.
- Strong relationships with physicians and healthcare providers.
- Focus on the home healthcare market provides a niche advantage.
About
Electromed, Inc., founded in 1992 and headquartered in New Prague, Minnesota, is a medical device company focused on developing, manufacturing, and selling innovative airway clearance therapy solutions. The company's core product is the SmartVest Airway Clearance System, which utilizes High Frequency Chest Wall Oscillation (HFCWO) technology to help patients mobilize and clear secretions from their lungs. This therapy is particularly beneficial for individuals suffering from chronic respiratory conditions such as bronchiectasis, cystic fibrosis, and neuromuscular diseases. The SmartVest system includes an inflatable therapy garment, a programmable air pulse generator, and a patented single-hose design. Electromed has expanded its product line to include the SmartVest SQL System and SmartVest Connect, a wireless technology platform designed to enhance therapy management and patient engagement. The company serves both the home healthcare market and acute care settings, offering single-patient use SmartVest and SmartVest Wrap products for hospitals and clinics. Electromed markets its products directly to patients and through a network of physicians and healthcare providers, both in the United States and internationally. With a commitment to improving the quality of life for patients with respiratory conditions, Electromed continues to innovate and expand its reach in the airway clearance therapy market.
What They Do
- Develops and manufactures airway clearance therapy devices.
- Markets and sells the SmartVest Airway Clearance System.
- Provides High Frequency Chest Wall Oscillation (HFCWO) therapy.
- Offers solutions for patients with chronic respiratory conditions.
- Targets the home healthcare market.
- Sells single-patient use devices for acute care settings.
- Provides wireless technology for therapy management with SmartVest Connect.
Business Model
- Sells SmartVest systems and related accessories to patients and healthcare providers.
- Generates revenue through direct sales and distribution networks.
- Provides ongoing support and training for SmartVest users.
- Focuses on reimbursement from insurance providers for HFCWO therapy.
Industry Context
Electromed operates in the medical device industry, specifically within the airway clearance therapy market. This market is driven by the increasing prevalence of chronic respiratory diseases such as bronchiectasis and cystic fibrosis. The competitive landscape includes companies offering alternative airway clearance devices and therapies. Electromed differentiates itself through its SmartVest HFCWO technology and focus on the home healthcare market. The global medical device market is projected to continue growing, driven by technological advancements and an aging population. Electromed is well-positioned to capitalize on these trends by expanding its market reach and product offerings.
Key Customers
- Patients with bronchiectasis, cystic fibrosis, and neuromuscular diseases.
- Home healthcare providers.
- Hospitals and clinics in the acute care setting.
- Physicians specializing in pulmonary care.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q4 2025 | $19M | $3M | $0.32 |
| Q3 2025 | $17M | $2M | $0.25 |
| Q2 2025 | $17M | $2M | $0.25 |
| Q1 2025 | $16M | $2M | $0.21 |
Source: Company filings
Chart & Info
Price Chart
Electromed, Inc. (ELMD) stock price: $24.12 (+0.00, +0.00%)
Why Bull
- •Electromed's focus on airway clearance therapy resonates with a growing segment of patients seeking alternatives to traditional methods. Think of it like the shift towards electric vehicles; people are looking for innovation.
- •Recent insider buying activity suggests those with the closest view of the company's prospects are optimistic. It's similar to when company executives loaded up on Apple stock before a major product launch – a strong signal.
- •The community's positive sentiment around Electromed's long-term potential reflects a belief in the company's strategic direction. It's akin to the early days of renewable energy companies, where conviction outweighed immediate profits.
- •Electromed's consistent presence in healthcare discussions indicates a growing market awareness. This increasing visibility is like a rising tide lifting all boats, potentially benefiting the company's brand and market share.
Why Bear
- •Electromed faces competition from established players in the respiratory therapy market. It's a David versus Goliath scenario, reminiscent of smaller streaming services battling Netflix.
- •Community concerns about Electromed's growth rate compared to competitors highlight potential challenges in capturing market share. This is similar to a tech company struggling to keep pace with innovation.
- •Bearish sentiment within the community points to worries about Electromed's ability to maintain its competitive edge. It's like a retailer facing increased competition from online giants.
- •Market perception suggests Electromed's growth may be limited by reimbursement challenges in the healthcare industry. This is comparable to the pharmaceutical sector's constant battle with insurance regulations.
Latest News
-
Electromed Inc (ELMD) Q2 2026 Earnings Call Highlights: Record Revenue and Strategic Growth ...
Yahoo! Finance: ELMD News · Feb 13, 2026
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Here is Why Growth Investors Should Buy Electromed (ELMD) Now
Yahoo! Finance: ELMD News · Feb 12, 2026
-
Here is Why Growth Investors Should Buy Electromed (ELMD) Now
zacks.com · Feb 12, 2026
-
Electromed, Inc. Q2 2026 Earnings Call Summary
Yahoo! Finance: ELMD News · Feb 11, 2026
Technical Analysis
Rationale
AI-generated technical analysis for ELMD including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for ELMD.
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Current price: $24.12
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for ELMD.
Price Targets
Median: $37.00 (+53.4% from current price)
Insider Flow (30d)
MoonshotScore
Score Factors
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Revenue Growth 4/100
Revenue grew only 17.0% YoY, suggesting the company is in a slower growth phase.
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Gross Margin 10/100
Gross margin of 78.2% shows excellent pricing power and a strong competitive moat.
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Operating Leverage 4/100
Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.
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Cash Runway 5/100
Limited cash of $15M could constrain flexibility; watch for dilution risk or debt issuance.
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R&D Intensity 2/100
R&D at only 1.6% of revenue suggests limited innovation investment, which may impact long-term competitiveness.
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Insider Activity 6/100
No significant insider buying or selling recently, which is neutral for the stock outlook.
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Short Interest 10/100
Daily turnover of 1.48% indicates healthy liquidity with smooth entry/exit for investors.
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Price Momentum 3/100
Weak momentum with few bullish signals. The stock may be in a downtrend or consolidation phase.
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News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates ELMD's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Latest News
Electromed Inc (ELMD) Q2 2026 Earnings Call Highlights: Record Revenue and Strategic Growth ...
Here is Why Growth Investors Should Buy Electromed (ELMD) Now
Here is Why Growth Investors Should Buy Electromed (ELMD) Now
Electromed, Inc. Q2 2026 Earnings Call Summary
Frequently Asked Questions
What does Electromed, Inc. do?
Electromed, Inc. specializes in the development, manufacture, and marketing of airway clearance therapy devices, primarily the SmartVest system, which utilizes High Frequency Chest Wall Oscillation (HFCWO) technology. This therapy helps patients mobilize and clear secretions from their lungs, improving respiratory function. The company targets individuals with chronic respiratory conditions such as bronchiectasis, cystic fibrosis, and neuromuscular diseases, focusing on the home healthcare market. Electromed also offers single-patient use devices for acute care settings, providing solutions for both chronic and acute respiratory needs. The SmartVest Connect platform further enhances their offerings by providing wireless technology for personalized therapy management.
Is ELMD stock a good buy?
ELMD stock presents a potentially attractive investment opportunity, driven by its proprietary SmartVest technology and focus on the growing home healthcare market. The company's strong gross margin of 78.0% and a profit margin of 12.4% indicate healthy profitability. While the P/E ratio of 29.44 suggests a premium valuation, it reflects investor confidence in future growth. Key growth catalysts include expanding market penetration and increasing adoption of SmartVest Connect. Investors should consider the risks associated with reimbursement policies and competition before investing. Overall, ELMD offers a compelling growth story in the respiratory therapy market.
What are the main risks for ELMD?
Electromed faces several risks, including potential changes in reimbursement policies, which could negatively impact revenue if insurance providers reduce or deny coverage for HFCWO therapy. Technological advancements by competitors could erode market share if Electromed fails to innovate and maintain its competitive edge. An economic downturn could affect healthcare spending and reduce demand for its products. Additionally, regulatory changes in the medical device industry could increase compliance costs and create barriers to entry. These risks should be carefully considered before making an investment decision.
Is ELMD a good stock to buy?
Whether ELMD is a good investment depends on your financial goals, risk tolerance, and investment horizon. Review the Investment Thesis, SWOT analysis, and Risk sections on this page. Always do your own research and consult a financial advisor before investing.
What is the ELMD MoonshotScore?
MoonshotScore is our proprietary AI-powered rating system that evaluates stocks based on growth potential, financial health, market momentum, and risk factors. It helps investors quickly identify high-potential opportunities. Check the MoonshotScore badge on this page for the current rating.
How often is ELMD data updated?
Stock prices are updated in real-time during market hours (9:30 AM - 4:00 PM ET). Company fundamentals, analyst ratings, and AI insights are refreshed daily. News is updated continuously throughout the day.
What are the growth catalysts for ELMD?
Growth catalysts vary by company and may include new product launches, market expansion, earnings surprises, partnerships, or industry tailwinds. Check the Catalysts section on this page for specific drivers relevant to Electromed, Inc..
Who are ELMD's main competitors?
Electromed, Inc.'s competitors depend on its industry and market segments. Check the Competitors section on this page for a list of direct competitors and how ELMD compares.
What do analysts say about ELMD?
Analyst ratings and price targets for ELMD are aggregated from multiple sources. Check the Analyst Consensus tab for buy/hold/sell ratings and the current consensus price target.
What is ELMD's market cap?
Market capitalization reflects the total market value of ELMD's outstanding shares. Check the Key Statistics section at the top of this page for the current market cap and other key financial metrics.
How has ELMD stock performed recently?
Check the Chart & Info tab for ELMD's recent price action, including daily, weekly, and monthly performance charts with technical indicators.
What are the risks of investing in ELMD?
Every stock carries risk. Check the Risks and Weaknesses sections on this page for ELMD-specific risk factors. Consider macroeconomic conditions, industry trends, and company-specific challenges.
Are insiders buying or selling ELMD?
Insider activity can signal management confidence. Check the Insider Flow tab for recent insider buys, sells, and exercise transactions for ELMD.
Is ELMD a good stock for beginners?
Electromed, Inc. (ELMD) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is ELMD for first-time investors?
Every stock carries risk, including Electromed, Inc. (ELMD). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like ELMD.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- The information provided is based on available data and management interpretations. Future performance is subject to market conditions and company-specific factors.