Taking everything into account, ELMD scores 7 out of 10 in our fundamental rating. ELMD was compared to 184 industry peers in the Health Care Equipment & Supplies industry. ELMD has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ELMD has a decent growth rate and is not valued too expensively. With these ratings, ELMD could be worth investigating further for quality investing!.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year ELMD was profitable.
ELMD had a positive operating cash flow in the past year.
Each year in the past 5 years ELMD has been profitable.
Of the past 5 years ELMD 4 years had a positive operating cash flow.

1.2 Ratios

With an excellent Return On Assets value of 14.01%, ELMD belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
ELMD's Return On Equity of 17.44% is amongst the best of the industry. ELMD outperforms 92.93% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.69%, ELMD belongs to the top of the industry, outperforming 96.74% of the companies in the same industry.
ELMD had an Average Return On Invested Capital over the past 3 years of 11.76%. This is above the industry average of 8.81%.
The last Return On Invested Capital (16.69%) for ELMD is above the 3 year average (11.76%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	14.01%
ROE	17.44%
ROIC	16.69%

ROA(3y)10.26%

ROA(5y)8.54%

ROE(3y)12.47%

ROE(5y)10.29%

ROIC(3y)11.76%

ROIC(5y)9.74%

1.3 Margins

Looking at the Profit Margin, with a value of 11.78%, ELMD belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
In the last couple of years the Profit Margin of ELMD has declined.
With an excellent Operating Margin value of 15.43%, ELMD belongs to the best of the industry, outperforming 84.24% of the companies in the same industry.
ELMD's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 78.08%, ELMD belongs to the top of the industry, outperforming 90.22% of the companies in the same industry.
In the last couple of years the Gross Margin of ELMD has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	15.43%
PM (TTM)	11.78%
GM	78.08%

OM growth 3Y29.31%

OM growth 5Y3.56%

PM growth 3Y28.63%

PM growth 5Y-1.68%

GM growth 3Y1.14%

GM growth 5Y0.12%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ELMD is creating some value.
ELMD has less shares outstanding than it did 1 year ago.
ELMD has less shares outstanding than it did 5 years ago.
ELMD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

An Altman-Z score of 16.53 indicates that ELMD is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 16.53, ELMD belongs to the best of the industry, outperforming 93.48% of the companies in the same industry.
There is no outstanding debt for ELMD. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	16.53

ROIC/WACC1.67

WACC10%

2.3 Liquidity

A Current Ratio of 4.31 indicates that ELMD has no problem at all paying its short term obligations.
ELMD has a better Current ratio (4.31) than 72.83% of its industry peers.
A Quick Ratio of 3.99 indicates that ELMD has no problem at all paying its short term obligations.
The Quick ratio of ELMD (3.99) is better than 75.54% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	4.31
Quick Ratio	3.99

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

ELMD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.17%, which is quite impressive.
The Earnings Per Share has been growing by 17.82% on average over the past years. This is quite good.
Looking at the last year, ELMD shows a quite strong growth in Revenue. The Revenue has grown by 16.97% in the last year.
ELMD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.53% yearly.

EPS 1Y (TTM)29.17%

EPS 3Y47.61%

EPS 5Y17.82%

EPS Q2Q%56.25%

Revenue 1Y (TTM)16.97%

Revenue growth 3Y15.39%

Revenue growth 5Y14.53%

Sales Q2Q%15.13%

3.2 Future

Based on estimates for the next years, ELMD will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.13% on average per year.
Based on estimates for the next years, ELMD will show a quite strong growth in Revenue. The Revenue will grow by 9.48% on average per year.

EPS Next Y28.75%

EPS Next 2Y26.7%

EPS Next 3Y10.13%

EPS Next 5YN/A

Revenue Next Year13.84%

Revenue Next 2Y12.69%

Revenue Next 3Y9.48%

Revenue Next 5YN/A

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

ELMD is valuated quite expensively with a Price/Earnings ratio of 30.54.
Based on the Price/Earnings ratio, ELMD is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ELMD to the average of the S&P500 Index (28.87), we can say ELMD is valued inline with the index average.
The Price/Forward Earnings ratio is 21.06, which indicates a rather expensive current valuation of ELMD.
Based on the Price/Forward Earnings ratio, ELMD is valued a bit cheaper than 79.89% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, ELMD is valued at the same level.

		Industry Rank	Sector Rank
PE	30.54
Fwd PE	21.06

4.2 Price Multiples

ELMD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ELMD is cheaper than 75.54% of the companies in the same industry.
ELMD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ELMD is cheaper than 89.13% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	21.36
EV/EBITDA	20.06

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ELMD has an outstanding profitability rating, which may justify a higher PE ratio.