MeritValue

Electromed, Inc.

ELMDdata completeness 88%16 fiscal years on file

Data notes: no data for concept 'investmentsAtFairValue'; no data for concept 'netInvestmentIncome'; no data for concept 'gainsOnRealEstateSales'; no data for concept 'dividendsPaid'

The thesis, from the filings

Electromed, Inc. earns about 20% on invested capital, far above its ~9% cost of capital, with a roughly flat share count — a real edge showing up in the numbers. The estimate methods put fair value between $6.05 and $21.36 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$41.7M1$48.1M2$54.7M3$64M4$73.8M4
Net income$2.31M5$3.17M6$5.15M7$7.54M8$11.3M8
Operating cash flow−$686,0009$1.32M10$9.07M11$11.4M12$9.67M12
Capital expenditure$1.43M13$1.65M14$287,00015$262,00016$1.25M16
Free cash flow (derived)−$2.11M9−$333,00010$8.78M11$11.1M12$8.41M12
Total debt—————
Cash & equivalents$8.15M17$7.37M18$16.1M19$15.3M20$20.5M20
Diluted shares8.8M8.7M8.9M8.9M8.7M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$62.13
your share of equity
Profit it earned you last year
$13.01
Free cash flow it threw off
$9.68
Debt you’d be carrying
—

10 shares is a claim on $62.13 of net worth that earned you $13.01 and generated $9.68 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
20% avg · 5y
FY22 9%FY23 11%FY24 19%FY25 27%FY26 34%

It earned about 20% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
−1% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.5.0

The 3 estimate methods that apply put fair value between $6.05 and $21.36 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$21.36
assumptions (10)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$8.78M
DCF · Growth Exit 5Y
$19.89
assumptions (10)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$8.78M
Earnings Power Value
$6.05
assumptions (8)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$5.15M
  • growthAssumed0.0%
Graham Number
$13.74
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years5.0%
Discount rate (WACC)9.08%
Terminal growth2.5%
At your growth, a share is worth $19.89
The three cases
Bear0.0%$16.48
Base5.0%$19.89
Bull10.0%$23.96

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 5.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2022-06-30 · accession 0000897101-23-000380 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-06-30 · accession 0000897101-24-000422 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2024-06-30 · accession 0001437749-25-027761 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2025-06-30 · accession 0001437749-26-028914 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2022-06-30 · accession 0000897101-23-000380 (NetIncomeLoss)
  6. 10-K · period ending 2023-06-30 · accession 0000897101-24-000422 (NetIncomeLoss)
  7. 10-K · period ending 2024-06-30 · accession 0001437749-25-027761 (NetIncomeLoss)
  8. 10-K · period ending 2025-06-30 · accession 0001437749-26-028914 (NetIncomeLoss)
  9. 10-K · period ending 2022-06-30 · accession 0000897101-23-000380 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2023-06-30 · accession 0000897101-24-000422 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2024-06-30 · accession 0001437749-25-027761 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2025-06-30 · accession 0001437749-26-028914 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2022-06-30 · accession 0000897101-23-000380 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2023-06-30 · accession 0000897101-24-000422 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2024-06-30 · accession 0001437749-25-027761 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2025-06-30 · accession 0001437749-26-028914 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2022-06-30 · accession 0000897101-23-000380 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2023-06-30 · accession 0000897101-24-000422 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2024-06-30 · accession 0001437749-25-027761 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2025-06-30 · accession 0001437749-26-028914 (CashAndCashEquivalentsAtCarryingValue)