Pro Medicus Limited (PME) AI Stock Analysis

• Market Cap: $31.60B
• Dividend Yield: 0.15%
• Average Volume (3M): 170.39K
• Price to Earnings (P/E): 275.2
• Beta (1Y): 1.53
• Revenue Growth: 31.88%
• EPS Growth: 39.10%
• Country: AU
• Employees: 79
• Sector: Healthcare
• Sector Strength: 47
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.61
• Shares Outstanding: 104,510,840
• 10 Day Avg. Volume: 237,315
• 30 Day Avg. Volume: 170,394
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 139.12
• Enterprise Value/Gross Profit: 175.16
• Enterprise Value/Ebitda: 173.66
• 1Y Price Target: $310.60
• Price Target Upside: 1.50% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 73 Outperform
• Price Target: AU$338.00 ▲(10.46% Upside)

Pro Medicus Limited's strong financial performance and positive earnings call are major strengths, reflecting robust growth and strategic advancements. However, the high valuation and technical indicators suggest caution, as the stock may be overvalued and lacks strong momentum. Challenges in market expansion and competitive pressures also pose risks.

Positive Factors

Market Acceptance

Over 55% of surveyed US hospital executives are likely to deploy Pro Medicus's Visage 7 software, highlighting strong market acceptance and growth potential.

Product Innovation

The Visage 7 software from Pro Medicus creates significant value for customers, making it 60-70% faster than legacy solutions and boosting customer volumes significantly.

Negative Factors

Market Penetration

PME's share of the US market remains low at 7%, which highlights the opportunity ahead, notwithstanding upside prospects from the core TAM, adjacencies and potential new markets.

Pro Medicus Limited Business Overview & Revenue Model

Company Description

Pro Medicus Limited engages in the development and supply of healthcare imaging software and services to hospitals, diagnostic imaging groups, and other related health entities in Australia, North America, and Europe. The company offers radiology information systems (RIS), a proprietary medical software for practice management, training, installation, professional services, and after-sale support and service products; and Promedicus.net, an e-health platform. It also provides healthcare imaging software that provides radiologists and clinicians with visualization capability for viewing 2-D, 3-D, and 4-D medical images, as well as picture archive and communication system (PACS)/digital imaging software; and integration products. In addition, the company offers Visage Ease Pro, a mobile application that provides users the ability to interpret various diagnostic imaging studies stored on a Visage 7 server. The company provides its products under the Visage RIS, Visage RIS/PACS, Visage 7, Visage Ease Pro, and Visage Ease names. Pro Medicus Limited was incorporated in 1983 and is headquartered in Richmond, Australia.

How the Company Makes Money

Pro Medicus Limited generates revenue primarily through the sale and licensing of its software solutions to healthcare providers. The company employs a subscription-based model for its Visage 7 platform, which includes fees for software licenses, support, and maintenance. Additionally, Pro Medicus earns money through professional services, such as implementation and customization of software solutions to meet specific client needs. Key revenue streams include long-term contracts with major healthcare institutions and partnerships with radiology groups. The company's ability to deliver scalable and efficient imaging solutions has led to significant adoption within the industry, contributing to its financial performance.

Pro Medicus Limited Financial Statement Overview

Summary

Pro Medicus Limited exhibits strong financial health with robust revenue and profit growth, efficient operations, and a solid balance sheet. While cash flow growth has slightly declined, the company's ability to generate cash remains strong. The low leverage and high profitability metrics position the company well for future growth and stability.

Income Statement

Pro Medicus Limited has demonstrated strong revenue growth with a 15.35% increase in the latest year, alongside impressive gross and net profit margins. The company maintains high EBIT and EBITDA margins, indicating efficient operations and profitability. The consistent revenue growth trajectory over the years highlights a robust business model and market demand.

Balance Sheet

The balance sheet of Pro Medicus Limited shows a solid equity base with a low debt-to-equity ratio, reflecting financial stability and low leverage risk. The return on equity is strong, indicating effective use of shareholders' funds to generate profits. The equity ratio suggests a healthy proportion of equity financing relative to total assets.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow growth, but operating cash flow remains strong relative to net income, indicating good cash generation from operations. The free cash flow to net income ratio is healthy, suggesting efficient conversion of earnings into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	212.98M	212.91M	161.43M	124.90M	93.46M	67.88M
Gross Profit	169.16M	212.60M	122.24M	92.36M	92.94M	46.66M
EBITDA	170.62M	164.85M	120.69M	91.69M	69.64M	49.53M
Net Income	115.22M	115.22M	82.79M	60.65M	44.44M	30.85M
Balance Sheet
Total Assets	338.70M	338.70M	257.43M	202.13M	157.05M	125.57M
Cash, Cash Equivalents and Short-Term Investments	209.19M	209.19M	154.89M	121.50M	90.55M	61.82M
Total Debt	2.25M	2.25M	2.07M	1.85M	2.28M	2.62M
Total Liabilities	81.74M	81.74M	69.70M	63.36M	55.32M	43.89M
Stockholders Equity	256.96M	256.96M	187.73M	138.78M	101.73M	81.68M
Cash Flow
Free Cash Flow	118.43M	103.95M	80.08M	58.33M	53.20M	31.33M
Operating Cash Flow	118.87M	111.33M	86.78M	64.77M	62.23M	39.02M
Investing Cash Flow	-14.12M	-6.58M	-78.07M	-9.79M	-17.56M	-27.40M
Financing Cash Flow	-57.62M	-57.62M	-39.84M	-27.53M	-23.31M	-14.05M

Pro Medicus Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 306.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PME, the sentiment is Positive. The current price of 306 is below the 20-day moving average (MA) of 310.82, below the 50-day MA of 308.07, and above the 200-day MA of 264.36, indicating a neutral trend. The MACD of -1.49 indicates Positive momentum. The RSI at 46.36 is Neutral, neither overbought nor oversold. The STOCH value of 37.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:PME.

Pro Medicus Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PME	73 Outperform	$31.60B	275.15	50.70%	0.15%	31.88%	39.10%
Sector *	51 Neutral	$7.81B	-0.22	-40.01%	2.29%	21.48%	-2.11%
TDMMF	―	$52.03M	―	-12.35%	―	―	―
RHT	60 Neutral	AU$19.30M	140.00	-3.11%	―	89.13%	69.57%
MDR	56 Neutral	AU$34.39M	110.00	-8.34%	―	-5.27%	50.29%
PCK	55 Neutral	AU$82.44M	―	-457.46%	―	21.93%	10.34%
ALC	53 Neutral	AU$134.30M	―	-5.63%	―	10.06%	―

Pro Medicus Limited Corporate Events

Pro Medicus Partners with 4DMedical for Software Development

Pro Medicus Limited has announced a financing agreement with 4DMedical to support the development and commercialization of 4DMedical’s lung function imaging and analysis software. This strategic move is expected to enhance Pro Medicus’s position in the health imaging industry and potentially expand its market reach, benefiting stakeholders through improved product offerings.

The most recent analyst rating on (AU:PME) stock is a Hold with a A$130.00 price target. To see the full list of analyst forecasts on Pro Medicus Limited stock, see the AU:PME Stock Forecast page.

4DMedical Secures $10 Million Investment from Pro Medicus to Boost Growth

4DMedical Limited has secured a $10 million strategic investment from Pro Medicus, a leading medical imaging software company, to accelerate its commercial pipeline and advance its CT:VQ™ product towards regulatory clearance in the U.S. This investment, structured as a hybrid debt and equity loan, provides growth capital without diluting shares if 4DMedical’s share price remains stable, while aligning interests with Pro Medicus if the share price rises. The agreement also allows Pro Medicus to distribute 4DMedical products, potentially enhancing their market reach and operational capabilities.

The most recent analyst rating on (AU:PME) stock is a Hold with a A$130.00 price target. To see the full list of analyst forecasts on Pro Medicus Limited stock, see the AU:PME Stock Forecast page.

Pro Medicus to Announce FY25 Results on August 14

Pro Medicus Limited has announced that it will release its full year results for FY25 on August 14, 2025. The company will also hold a webcast conference call on the same day to discuss the results, indicating a transparent approach to stakeholder communication and potential implications for its market positioning.

The most recent analyst rating on (AU:PME) stock is a Hold with a A$130.00 price target. To see the full list of analyst forecasts on Pro Medicus Limited stock, see the AU:PME Stock Forecast page.

Pro Medicus Secures A$170M Contract with UCHealth for Cloud-Based Imaging Platform

Pro Medicus Limited has secured a significant A$170 million, 10-year contract with UCHealth, a Colorado-based healthcare system, to implement its Visage 7 Enterprise Imaging Platform across UCHealth’s network. This strategic move enhances Pro Medicus’s position in the North American market by replacing UCHealth’s legacy systems with a unified, cloud-based solution, potentially setting a new standard in healthcare imaging technology.

The most recent analyst rating on (AU:PME) stock is a Hold with a A$130.00 price target. To see the full list of analyst forecasts on Pro Medicus Limited stock, see the AU:PME Stock Forecast page.

Pro Medicus Secures $20M Contract Renewal with FMOLHS

Pro Medicus Limited’s U.S. subsidiary, Visage Imaging, Inc., has secured a 5-year contract renewal worth at least A$20 million with the Franciscan Missionaries of Our Lady Health System. The agreement includes the Visage 7 Viewer and a new Visage 7 Open Archive, both to be implemented in the cloud with a transaction-based model. This move highlights Pro Medicus’s strategic focus on transitioning clients to cloud-based solutions, potentially enhancing its market position and offering growth opportunities.

The most recent analyst rating on (AU:PME) stock is a Hold with a A$130.00 price target. To see the full list of analyst forecasts on Pro Medicus Limited stock, see the AU:PME Stock Forecast page.

Pro Medicus Secures $20M Contract with University of Iowa Health Care

Pro Medicus Limited has secured a AUD $20 million, 5-year contract with University of Iowa Health Care to implement its Visage 7 Enterprise Imaging Platform across the institution. This agreement will replace the legacy PACS system with a cloud-based solution, enhancing diagnostic imaging and integrating with electronic health records. The rollout is set to begin immediately, with completion targeted for Q4 2025, marking a significant step in Pro Medicus’s expansion in the healthcare IT sector.