29 USD
-0.09 (-0.31%)
We assign a fundamental rating of 7 out of 10 to ELMD. ELMD was compared to 184 industry peers in the Health Care Equipment & Supplies industry. Both the health and profitability get an excellent rating, making ELMD a very profitable company, without any liquidiy or solvency issues. ELMD has a decent growth rate and is not valued too expensively. These ratings could make ELMD a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
- ELMD had positive earnings in the past year.
- In the past year ELMD had a positive cash flow from operations.
- In the past 5 years ELMD has always been profitable.
- ELMD had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 14.01%, ELMD belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 17.44%, ELMD belongs to the top of the industry, outperforming 92.93% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 16.69%, ELMD belongs to the best of the industry, outperforming 96.74% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ELMD is above the industry average of 8.81%.
- The 3 year average ROIC (11.76%) for ELMD is below the current ROIC(16.69%), indicating increased profibility in the last year.
| 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
- ELMD's Profit Margin of 11.78% is amongst the best of the industry. ELMD outperforms 86.96% of its industry peers.
- In the last couple of years the Profit Margin of ELMD has declined.
- ELMD has a Operating Margin of 15.43%. This is amongst the best in the industry. ELMD outperforms 84.24% of its industry peers.
- In the last couple of years the Operating Margin of ELMD has grown nicely.
- ELMD has a Gross Margin of 78.08%. This is amongst the best in the industry. ELMD outperforms 90.22% of its industry peers.
- 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%
2. Health
2.1 Basic Checks
- ELMD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, ELMD has less shares outstanding
- The number of shares outstanding for ELMD has been reduced compared to 5 years ago.
- 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.
2.2 Solvency
- ELMD has an Altman-Z score of 16.86. This indicates that ELMD is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 16.86, ELMD belongs to the top 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 | 16.86 |
ROIC/WACC1.66
WACC10.04%
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.
- ELMD's Quick ratio of 3.99 is fine compared to the rest of the industry. ELMD outperforms 75.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.31 | ||
| Quick Ratio | 3.99 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 29.17% over the past year.
- The Earnings Per Share has been growing by 17.82% on average over the past years. This is quite good.
- The Revenue has grown by 16.97% in the past year. This is quite good.
- The Revenue has been growing by 14.53% on average over the past years. This is quite good.
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
- ELMD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.13% yearly.
- The Revenue is expected to grow by 9.48% on average over the next years. This is quite good.
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
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 31.18, ELMD can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of ELMD indicates a somewhat cheap valuation: ELMD is cheaper than 74.46% of the companies listed in the same industry.
- ELMD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 21.51, which indicates a rather expensive current valuation of ELMD.
- Based on the Price/Forward Earnings ratio, ELMD is valued a bit cheaper than the industry average as 79.35% of the companies are valued more expensively.
- ELMD is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.18 | ||
| Fwd PE | 21.51 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ELMD is valued a bit cheaper than 75.54% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ELMD is valued cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.81 | ||
| EV/EBITDA | 20.58 |
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.
PEG (NY)1.08
PEG (5Y)1.75
EPS Next 2Y26.7%
EPS Next 3Y10.13%
5. Dividend
5.1 Amount
- No dividends for ELMD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ELECTROMED INC / ELMD FAQ
What is the ChartMill fundamental rating of ELECTROMED INC (ELMD) stock?
ChartMill assigns a fundamental rating of 7 / 10 to ELMD.
What is the valuation status for ELMD stock?
ChartMill assigns a valuation rating of 5 / 10 to ELECTROMED INC (ELMD). This can be considered as Fairly Valued.
How profitable is ELECTROMED INC (ELMD) stock?
ELECTROMED INC (ELMD) has a profitability rating of 8 / 10.
What is the financial health of ELECTROMED INC (ELMD) stock?
The financial health rating of ELECTROMED INC (ELMD) is 9 / 10.
What is the expected EPS growth for ELECTROMED INC (ELMD) stock?
The Earnings per Share (EPS) of ELECTROMED INC (ELMD) is expected to grow by 28.75% in the next year.