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
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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
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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.
Make a Prediction
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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
Wall Street price target analysis for ELMD.
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
Cash position data is currently unavailable for this company.
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R&D Intensity 5/100
R&D spending data is currently unavailable for this company.
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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 5/100
Float and volume data unavailable for liquidity analysis.
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Price Momentum 0/100
No bullish technical signals detected. The stock lacks upward price momentum currently.
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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. Key factors to evaluate include the company's revenue growth trajectory, profit margins, debt-to-equity ratio, competitive moat, and valuation multiples (P/E, P/S, EV/EBITDA) relative to industry peers. Our AI-generated Investment Thesis and SWOT analysis on this page provide a data-driven starting point. Always do your own research and consider consulting a financial advisor before making investment decisions.
What is the ELMD MoonshotScore?
The MoonshotScore for ELMD is an AI-powered rating from 0 to 100 that evaluates a stock across four dimensions: growth potential (revenue and earnings trajectory), financial health (balance sheet strength, cash flow), market momentum (price trends, volume patterns, institutional flows), and risk factors (volatility, debt levels, sector headwinds). Scores above 70 indicate strong potential, 50-70 moderate, and below 50 suggests caution. The score is recalculated daily using the latest financial data and market signals.
How often is ELMD data updated?
ELMD stock prices are updated in real-time during U.S. market hours (9:30 AM - 4:00 PM ET, Monday through Friday). After-hours and pre-market prices are also tracked. Company fundamentals (earnings, revenue, balance sheet) are refreshed when new quarterly or annual reports are filed. Analyst ratings, price targets, and AI-generated insights are updated daily. Breaking news related to ELMD is aggregated continuously from premium financial news sources throughout the day.
What are the growth catalysts for ELMD?
Growth catalysts for Electromed, Inc. (ELMD) can include several categories: product catalysts (new launches, FDA approvals, patent grants), financial catalysts (earnings beats, margin expansion, share buybacks), strategic catalysts (acquisitions, partnerships, market expansion into new regions), and macro catalysts (favorable regulation, industry tailwinds, secular growth trends). Our AI analyzes Electromed, Inc.'s specific catalysts using earnings transcripts, SEC filings, and news sentiment to identify the most impactful near-term and long-term drivers.
Who are ELMD's main competitors?
Electromed, Inc. (ELMD) competes with companies in its industry that target similar customers, markets, or product categories. Competitor analysis involves comparing key metrics: market share, revenue growth rates, profit margins, R&D spending, and valuation multiples. Understanding competitive positioning helps investors assess whether ELMD has a sustainable competitive advantage (moat) through brand strength, network effects, cost leadership, or switching costs. Our Competitors section provides a side-by-side comparison with relevant peers.
What do analysts say about ELMD?
Wall Street analyst coverage for ELMD includes consensus ratings (buy, hold, or sell), 12-month price targets, and earnings estimates. Analyst opinions are aggregated from major investment banks and research firms. Key metrics to watch include the consensus price target (average, high, and low estimates), the number of analysts covering the stock, any recent rating changes (upgrades or downgrades), and how actual earnings compare to analyst estimates (beat or miss history). Our platform aggregates these from multiple data providers for a comprehensive view.
What is ELMD's market cap?
Market capitalization (market cap) for ELMD is calculated by multiplying the current share price by the total number of outstanding shares. It represents the market's total valuation of the company. Stocks are typically categorized as mega-cap ($200B+), large-cap ($10B-$200B), mid-cap ($2B-$10B), small-cap ($300M-$2B), or micro-cap (under $300M). Market cap influences index inclusion, institutional ownership eligibility, and risk profile. Our Key Statistics section shows ELMD's current market cap alongside enterprise value and other valuation metrics.
How has ELMD stock performed recently?
ELMD's recent stock performance can be evaluated across multiple timeframes: daily price changes, week-over-week momentum, monthly trends, and year-to-date returns. Important performance indicators include the stock's 52-week high and low, moving averages (50-day and 200-day SMA), relative strength index (RSI), and volume trends. Comparing ELMD's performance against its sector index and the S&P 500 provides context on whether it is outperforming or underperforming the broader market.
What are the risks of investing in ELMD?
Key risk categories for ELMD include: market risk (overall market downturns affecting stock prices), company-specific risk (management changes, product failures, competitive threats), financial risk (high debt levels, cash burn, dilution from stock issuance), regulatory risk (government policy changes, lawsuits, compliance issues), and macroeconomic risk (interest rate changes, inflation, currency fluctuations). Beta measures ELMD's volatility relative to the market - a beta above 1.0 means higher volatility than the S&P 500. Our AI-generated risk assessment identifies the most relevant risk factors for this specific stock.
Are insiders buying or selling ELMD?
Insider trading activity for ELMD tracks purchases and sales by company executives, directors, and major shareholders (10%+ owners) as reported in SEC Form 4 filings. Insider buying is generally considered a bullish signal because insiders have the deepest knowledge of company operations, while selling may have various motivations (diversification, tax planning, pre-planned 10b5-1 trading plans). Key metrics include the buy-to-sell ratio, total dollar value of insider transactions, and whether multiple insiders are trading in the same direction. Our Insider Flow tab shows recent transactions with dates and dollar amounts.
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.