ElectromedELMD +2.72%91 Gross Margin % is 78.83% as of Mar. 2026, which is 3% above its 10-year median of 76.64. GuruFocus rates ELMD with a GF Score™ of 91/100 and a GF Value™ of $25.16 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 805 Medical Devices & Instruments companies, Electromed ranks better than 90.19% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Electromed's Gross Profit for the
three
months ended in Mar. 2026 was $14.64 Mil. Electromed's Revenue for the
three
months ended in Mar. 2026 was $18.58 Mil. Therefore, Electromed's Gross Margin % for the quarter that ended in Mar. 2026 was 78.83%.
The historical rank and industry rank for Electromed's Gross Margin % or its related term are showing as below:
ELMD'
s Gross Margin % Range Over the Past 10 Years
Min: 75.47 Med: 76.64 Max: 79.53
Current: 78.44
During the past 13 years, the highestGross Margin % of Electromed was 79.53%. The lowest was 75.47%. And the median was 76.64%.
ELMD's Gross Margin % is ranked better than 90.19% of 805
companies
in the Medical Devices & Instruments industry
Industry Median: 52.07
vs ELMD: 78.44
Electromed had a gross margin of 78.83% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Electromed was 0.10% per year.
Electromed (AMEX:ELMD) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Electromed had a gross margin of 78.83% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Electromed Gross Margin % Related Terms
Electromed Gross Margin % Historical Data
* Premium members only.
The historical data trend for Electromed's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Medical Devices subindustry, Electromed's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Electromed Gross Margin % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Electromed's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Electromed's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Electromed (ELMD) has a Gross Margin % of 78.83% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Electromed and its competitors. This is near median its historical median of 76.64. Over the past decade, Electromed's Gross Margin % has ranged from 75.47 to 79.53. According to the industry distribution chart, Electromed ranks #79 out of 805 companies in the Medical Devices & Instruments industry, placing it in the top 9.8%.
Is Electromed's Gross Margin % too high?
Electromed's current Gross Margin % of 78.83% is near median its 10-year median of 76.64. Over the past 10 years, this metric has ranged from a low of 75.47 to a high of 79.53. The Medical Devices & Instruments industry median Gross Margin % is 52.07. Electromed's value of 78.83% is 51.4% above this industry median. Based on the distribution chart, Electromed ranks #79 out of 805 companies in the Medical Devices & Instruments industry, which is in the top quartile — a strong position relative to peers. Overall, Electromed has a GF Score™ of 91/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Electromed's Gross Margin % compare to MASS and SI?
According to the Medical Devices & Instruments industry distribution chart, Electromed ranks #79 out of 805 companies for Gross Margin %. This places Electromed in the top 10% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 52.07. Electromed's value of 78.83% is 51.4% above this benchmark. Historically, Electromed's own Gross Margin % has ranged from 75.47 to 79.53 over the past decade. While the company's 10-year median is 76.64 vs. the industry median of 52.07, Electromed has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Medical Devices & Instruments company?
The median Gross Margin % among Medical Devices & Instruments companies is 52.07, based on 805 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Electromed's current Gross Margin % of 78.83% is 51.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Electromed and its competitors. For the Medical Devices & Instruments industry, the median Gross Margin % is 52.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Electromed's current Gross Margin % is 78.83%, which is near median its own 10-year median of 76.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Electromed stock overvalued right now?
Based on GuruFocus' analysis, Electromed (ELMD) is currently considered Significantly Overvalued. The stock's GF Value™ is $25.16, compared to a current price of $41.14 — trading 63.5% above its estimated fair value. The current Gross Margin % is 78.83%, which is near median its 10-year median of 76.64 and 51.4% above the Medical Devices & Instruments industry median of 52.07. Electromed's overall GF Score™ is 91/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Electromed (ELMD), the current Gross Margin % is 78.83% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Electromed (ELMD) Overvalued in 2026?
Based on GuruFocus' analysis, Electromed stock appears to be overvalued.
The current stock price of $41.14 is trading 63.5% above its estimated GF Value™ of $25.16.
GuruFocus considers Electromed to be Significantly Overvalued.
Key valuation signals for ELMD:
Gross Margin %: 78.83% (near median its 10-year median of 76.64)
GF Value™: $25.16 vs. price of $41.14 (63.5% above fair value)
Industry Position: 51.4% above the Medical Devices & Instruments median (#79 of 805)
No single metric tells the full story. See the ELMD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Electromed Inc is a United States-based company that develops, manufactures, markets, and sells products that provide airway clearance therapy, including the SmartVest Airway Clearance System and related products, to patients with compromised pulmonary function with a commitment to excellence and compassionate service. The SmartVest System features a programmable air pulse generator, a therapy garment worn over the upper body and a connecting hose, which together provide safe, comfortable, and effective airway clearance therapy.
91GF Score
Get the complete analysis for ELMD
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ELMD has been successfully added to your 
