Is ELMD (ELMD) Halal?

AMEX Healthcare United States $205M
✓ HALAL
Confidence: 83/100
ELMD (ELMD) is Halal under 4 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 0.0% against the AAOIFI threshold of 30%, ELMD comfortably passes the key financial ratio tests. The company operates in the Healthcare sector (Medical Devices), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from June 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 0.0%
/ 30%
7.7%
/ 30%
13.1%
/ 30%
0.98%
/ 5%
✓ HALAL
DJIM 0.0%
/ 33%
7.7%
/ 33%
13.1%
/ 33%
0.98%
/ 5%
✓ HALAL
MSCI 0.0%
/ 33%
28.4%
/ 33%
48.5%
/ 33%
0.98%
/ 5%
✗ NOT HALAL
S&P 0.0%
/ 33%
7.7%
/ 33%
13.1%
/ 33%
0.98%
/ 5%
✓ HALAL
FTSE 0.0%
/ 33%
28.4%
/ 33%
48.5%
/ 50%
0.98%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
23.8
Forward: 40.2
EPS
$1.03
P/B Ratio
4.5
EV/EBITDA
14.7
EV: $189M
Revenue
$64M
Growth: 16.3%
Beta
0.3
Low volatility
Current Ratio
4.9

Profitability

Gross Margin 78.2%
Operating Margin 19.2%
Net Margin 13.1%
Return on Equity (ROE) 20.2%
Return on Assets (ROA) 13.6%

Cash Flow & Balance Sheet

Operating Cash Flow$11M
Free Cash Flow$11M
Debt-to-Equity0.2
Current Ratio4.9
Total Assets$54M

Price & Trading

Last Close$24.45
50-Day MA$25.73
200-Day MA$24.24
Avg Volume67K
Beta0.3
52-Week Range
$17.73
$30.73

About ELMD (ELMD)

CEO
Mr. James L. Cunniff
Employees
177
Sector
Healthcare
Industry
Medical Devices
Country
United States
Exchange
AMEX
Market Cap
$205M
Currency
USD

Electromed, Inc. develops, manufactures, markets, and sells airway clearance therapy and related products that apply high frequency chest wall oscillation (HFCWO) therapy in pulmonary care for patients in the United States and internationally. The company offers SmartVest airway clearance system for patients with compromised pulmonary functions, including bronchiectasis and cystic fibrosis, as well as neuromuscular conditions, such as cerebral palsy, muscular dystrophies, amyotrophic lateral sclerosis, and post-surgical complications; SmartVest SQL System; SmartVest Clearway System that consists of an inflatable therapy garment, a programmable air pulse generator, and a patented single-hose that delivers air pulses from the generator to the garment to create oscillatory pressure on the chest wall; and SmartVest Connect, a wireless technology that allows data connection between physicians and patients to track therapy performance and collaborate in treatment decisions. It also provides single patient use SmartVest and SmartVest Wrap products for health care providers in the acute care setting. It markets its products to physicians, health care providers, and directly to patients. Electromed, Inc. was incorporated in 1992 and is headquartered in New Prague, Minnesota.

Purification Calculator

As a halal stock with 0.98% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is ELMD (ELMD) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), ELMD is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is ELMD's debt ratio?

ELMD's debt ratio is 0.0% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 0.0%.

Does ELMD require dividend purification?

Yes, ELMD has an impermissible income ratio of 0.98%, which means 0.98% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are ELMD's key financial metrics?

ELMD has a market capitalization of $205M, trailing P/E ratio of 23.8, and revenue of $64M. The company maintains a gross margin of 78.2% and a net margin of 13.1%. Return on equity stands at 20.2%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.