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Electromed, Inc. ( we, our, us, Electromed or the Company ) develops, manufactures, markets and sells innovative products that provide airway clearance therapy, including the SmartVest Airway Clearance System ( SmartVest System ) to patients with compromised pulmonary function with a commitment to excellence and compassionate service. Our goal is to make High Frequency Chest Wall Oscillation ( …
$40.78
$1.32 (-3.15%)
Live · 07:54 PM
15.09% operating margin is respectable but not wide. ROIC at 15.70%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue up 17.0% YoY with margins expanding 3.1pp.
At 35x earnings, the current multiple leaves limited room for execution misses or growth deceleration.
34.6x earnings, 36.5x FCF. Not cheap, the quality is already reflected in the price. Upside from here requires either margin expansion or growth re-acceleration, not just continuation.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$72M
▲ +17.0% YoY
Net Income (TTM)
$10M
▲ +46.3% YoY
Op. Margin
18.25%
▲ +3.1pp YoY
ROIC
21.07%
▲ +4.3pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$10M
▲ +26.8% YoY
Op. Cash Flow (TTM)
$11M
▲ +25.7% YoY
Net Debt
-$17M
Net Cash Position
Cash & Equiv.
$17M
5Y CAGR: +14.5%
5Y CAGR: +27.1%
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At a P/E of 34.6 and a price-to-free-cash-flow of 36.5, Electromed (ELMD) trades below a two-stage DCF intrinsic value of about $58.34 per share, so at $40.78 the stock looks undervalued (43.1% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Electromed scores 76/100 on Intrinsiqq's quality scorecard (a solid business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $58.34 per share for ELMD, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $43.75. At today's $40.78, that puts the stock about 43.1% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Electromed scores 76 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a solid business on these measures. Recent fundamentals include a 18.3% operating margin and a 21.1% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
That depends on valuation and quality together, not either alone. ELMD currently trades below its estimated intrinsic value and scores 76/100 on quality (solid). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.