Electromed, Inc. (ELMD): fair value, margin of safety and Wheel Score

Is ELMD undervalued?

ELMD closed at 28.03 on 16 Oct 2026 against a GLS average fair value of 28.56 - 1.9% below fair value, which our screens read as "fairly priced". 3 of 8 models are above the current price. There is no discount to lean on here, so the margin of safety is not the reason to look at the stock.

The 8 models disagree widely: Lynch gives 5.47 while GLS Growth gives 83.70. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

The nightly engine files ELMD under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.

Nine valuation models for ELMD

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

On financial health ELMD scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 7.8 out of 10, built from ten years of revenue, earnings, margins, cash flow, share count and returns on capital scored for consistency - a high reading that points to a durable business.

Returns on capital are high - ROIC 20.9%, ROE 20.9%, ROA 17.1% - with debt at 0.00 times equity and a free-cash-flow yield of 4.0%.

Electromed, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Hospital 85%, Other 15% (quarter Q2 FY2025).

Institutional ownership scores 7/10, insider activity 2/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 67: Good

ELMD scores 67 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 13/25), Piotroski health (16/20), the GLS moat (12/15), the option premium on offer (20/20) and how easily the stock trades (6/20). Stability (6/20) is the part holding the score back.

Implied volatility is 60% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 415 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.

Volume runs at 57k shares a day on a market cap of $232M, with a beta of 0.46 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 6 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

The next earnings report is due on 11 Nov 2026 (after the close), 26 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Medical - Devices

The 12 companies below are the closest to Electromed, Inc. by market cap within the Medical - Devices industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

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