Electromed Profit Margin vs. Gross Profit

ELMD Stock  USD 31.06  0.57  1.87%   
Based on the measurements of profitability obtained from Electromed's financial statements, Electromed's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Electromed's ability to earn profits and add value for shareholders.

Electromed Net Profit Margin

0.0988

At present, Electromed's Sales General And Administrative To Revenue is projected to slightly decrease based on the last few years of reporting. The current year's Operating Cash Flow Sales Ratio is expected to grow to 0.17, whereas EV To Sales is forecasted to decline to 1.31. At present, Electromed's Income Before Tax is projected to increase significantly based on the last few years of reporting. The current year's Total Other Income Expense Net is expected to grow to about 477.8 K, whereas Change To Netincome is forecasted to decline to about 561.5 K.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.60.7626
Significantly Down
Very volatile
For Electromed profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Electromed to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Electromed utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Electromed's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Electromed over time as well as its relative position and ranking within its peers.
  

Electromed's Revenue Breakdown by Earning Segment

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For information on how to trade Electromed Stock refer to our How to Trade Electromed Stock guide.
Is Health Care Equipment & Supplies space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Electromed. If investors know Electromed will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Electromed listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.809
Earnings Share
0.72
Revenue Per Share
6.39
Quarterly Revenue Growth
0.09
Return On Assets
0.0839
The market value of Electromed is measured differently than its book value, which is the value of Electromed that is recorded on the company's balance sheet. Investors also form their own opinion of Electromed's value that differs from its market value or its book value, called intrinsic value, which is Electromed's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Electromed's market value can be influenced by many factors that don't directly affect Electromed's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Electromed's value and its price as these two are different measures arrived at by different means. Investors typically determine if Electromed is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Electromed's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Electromed Gross Profit vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Electromed's current stock value. Our valuation model uses many indicators to compare Electromed value to that of its competitors to determine the firm's financial worth.
Electromed is rated # 3 in profit margin category among its peers. It is rated below average in gross profit category among its peers fabricating about  388,087,141  of Gross Profit per Profit Margin. At present, Electromed's Net Profit Margin is projected to increase slightly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Electromed by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Electromed Gross Profit vs. Profit Margin

Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Electromed

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.09 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Electromed

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
36.52 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.

Electromed Gross Profit Comparison

Electromed is currently under evaluation in gross profit category among its peers.

Electromed Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Electromed, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Electromed will eventually generate negative long term returns. The profitability progress is the general direction of Electromed's change in net profit over the period of time. It can combine multiple indicators of Electromed, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Operating Income6.6 M6.9 M
Income Before TaxM7.4 M
Total Other Income Expense Net455 K477.8 K
Net Income Applicable To Common Shares3.6 M3.8 M
Net Income5.2 M5.4 M
Income Tax Expense1.9 MM
Net Income From Continuing Ops5.2 M5.4 M
Interest Income455 K477.8 K
Net Interest Income455 K477.8 K
Non Operating Income Net Other-10.8 K-11.3 K
Change To Netincome764.8 K561.5 K
Net Income Per Share 0.60  0.63 
Income Quality 1.76  1.85 
Net Income Per E B T 0.73  0.47 

Electromed Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Electromed. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Electromed position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Electromed's important profitability drivers and their relationship over time.

Use Electromed in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Electromed position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Electromed will appreciate offsetting losses from the drop in the long position's value.

Electromed Pair Trading

Electromed Pair Trading Analysis

The ability to find closely correlated positions to Electromed could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Electromed when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Electromed - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Electromed to buy it.
The correlation of Electromed is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Electromed moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Electromed moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Electromed can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Electromed position

In addition to having Electromed in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

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Municipals ETFs
Municipals ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Municipals ETFs theme has 111 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Municipals ETFs Theme or any other thematic opportunities.
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When determining whether Electromed is a strong investment it is important to analyze Electromed's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Electromed's future performance. For an informed investment choice regarding Electromed Stock, refer to the following important reports:
Check out Investing Opportunities.
For information on how to trade Electromed Stock refer to our How to Trade Electromed Stock guide.
You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
To fully project Electromed's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Electromed at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Electromed's income statement, its balance sheet, and the statement of cash flows.
Potential Electromed investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Electromed investors may work on each financial statement separately, they are all related. The changes in Electromed's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Electromed's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.