ElectromedELMD +2.67%91 Operating Margin % is 20.27% as of Mar. 2026, which is 88% above its 10-year median of 10.81. GuruFocus rates ELMD with a GF Score™ of 91/100 and a GF Value™ of $25.15 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 816 Medical Devices & Instruments companies, Electromed ranks better than 83.09% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Electromed's Operating Income for the
three
months ended in Mar. 2026 was $3.77 Mil. Electromed's Revenue for the
three
months ended in Mar. 2026 was $18.58 Mil. Therefore, Electromed's Operating Margin % for the quarter that ended in Mar. 2026 was 20.27%.
Good Sign:
Electromed Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Electromed's Operating Margin % or its related term are showing as below:
ELMD'
s Operating Margin % Range Over the Past 10 Years
Min: 7.13 Med: 10.81 Max: 18.25
Current: 18.25
ELMD's Operating Margin % is ranked better than 83.09% of 816
companies
in the Medical Devices & Instruments industry
Industry Median: 3.465
vs ELMD: 18.25
Electromed's 5-Year Average Operating Margin % Growth Rate was 2.60% per year.
Electromed's Operating Income for the
three
months ended in Mar. 2026 was $3.77 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $13.10 Mil.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Electromed Operating Margin % Related Terms
Electromed Operating Margin % Historical Data
* Premium members only.
The historical data trend for Electromed's Operating 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.
ELMD vs MASS, SI, CV: Operating Margin % Comparison
For the Medical Devices subindustry, Electromed's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Electromed's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Electromed's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Electromed's Operating Margin % for the fiscal year that ended in Jun. 2025 is calculated as
* 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.
Electromed (ELMD) has a Operating Margin % of 20.27% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Electromed and its competitors. This is 88% above median its historical median of 10.81. Over the past decade, Electromed's Operating Margin % has ranged from 7.13 to 18.25. According to the industry distribution chart, Electromed ranks #138 out of 816 companies in the Medical Devices & Instruments industry, placing it in the top 16.9%.
Is Electromed's Operating Margin % too high?
Electromed's current Operating Margin % of 20.27% is 88% above median its 10-year median of 10.81. Over the past 10 years, this metric has ranged from a low of 7.13 to a high of 18.25. The Medical Devices & Instruments industry median Operating Margin % is 3.47. Electromed's value of 20.27% is 485% above this industry median. Based on the distribution chart, Electromed ranks #138 out of 816 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 Operating Margin % compare to MASS and SI?
According to the Medical Devices & Instruments industry distribution chart, Electromed ranks #138 out of 816 companies for Operating Margin %. This places Electromed in the top 17% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.47. Electromed's value of 20.27% is 485% above this benchmark. Historically, Electromed's own Operating Margin % has ranged from 7.13 to 18.25 over the past decade. While the company's 10-year median is 10.81 vs. the industry median of 3.47, 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 Operating Margin % for a Medical Devices & Instruments company?
The median Operating Margin % among Medical Devices & Instruments companies is 3.47, based on 816 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Electromed's current Operating Margin % of 20.27% is 485% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Electromed and its competitors. For the Medical Devices & Instruments industry, the median Operating Margin % is 3.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Electromed's current Operating Margin % is 20.27%, which is 88% above median its own 10-year median of 10.81. 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 $25.15, compared to a current price of $40.17 — trading 59.7% above its estimated fair value. The current Operating Margin % is 20.27%, which is 88% above median its 10-year median of 10.81 and 485% above the Medical Devices & Instruments industry median of 3.47. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Electromed (ELMD), the current Operating Margin % is 20.27% 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 $40.17 is trading 59.7% above its estimated GF Value™ of $25.15.
GuruFocus considers Electromed to be Significantly Overvalued.
Key valuation signals for ELMD:
Operating Margin %: 20.27% (88% above median its 10-year median of 10.81)
GF Value™: $25.15 vs. price of $40.17 (59.7% above fair value)
Industry Position: 485% above the Medical Devices & Instruments median (#138 of 816)
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
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