Pro Medicus Limited (AU:PME)
ASX:PME
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Pro Medicus Limited
(Sydney:PME)
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Rating:68Neutral
Price Target:
AU$128.00
▲(11.69% Upside)
Action:DowngradedDate:03/14/26
Overall score is supported primarily by strong financial performance (profitable growth, solid balance sheet, and healthy operating cash flow). Offsetting factors are a weaker technical trend (below key longer-term moving averages with negative MACD) and a less attractive valuation profile (higher P/E and low dividend yield).
Positive Factors
Recurring enterprise license model
Pro Medicus’s core revenue from long-term enterprise software licenses and recurring maintenance produces predictable, sticky cash flows. Large-system deployments create switching costs and expansion potential inside accounts, supporting multi-year revenue visibility and durable customer lifetime value.
Negative Factors
Softening free cash flow growth
A modest decline in free cash flow growth, despite strong operating cash, may constrain how quickly the firm can scale investments or return capital. Persistent FCF softening can limit strategic optionality for acquisitions, capex, or higher shareholder distributions over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring enterprise license model
Pro Medicus’s core revenue from long-term enterprise software licenses and recurring maintenance produces predictable, sticky cash flows. Large-system deployments create switching costs and expansion potential inside accounts, supporting multi-year revenue visibility and durable customer lifetime value.
Read all positive factors
Pro Medicus Limited (PME) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$11.97B
Dividend Yield0.24%
Average Volume (3M)193.04K
Price to Earnings (P/E)33.7
Beta (1Y)1.48
Revenue Growth31.88%
EPS Growth39.10%
CountryAU
Employees79
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)1.64
Shares Outstanding104,469,960
10 Day Avg. Volume215,756
30 Day Avg. Volume193,037
Financial Highlights & Ratios
PEG Ratio6.59
Price to Book (P/B)115.91
Price to Sales (P/S)139.89
P/FCF Ratio286.51
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$225.46Price Target Upside96.74% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)1.61
Revenue Forecast (FY)AU$273.51M
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 ...
How the Company Makes Money
Pro Medicus primarily makes money by licensing its medical imaging software to healthcare providers under long-term, enterprise contracts. The core revenue stream is software license fees for the Visage Imaging platform (including modules for diag...
Pro Medicus Limited Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with record revenue and profit growth, significant contract wins, and advancements in cloud and AI technology. However, challenges remain in expanding market penetration outside North America and navigating a competitive landscape.Positive Updates
Significant Revenue and Profit Growth
Revenue increased by just under 32%, profit after tax rose approximately 40%, and underlying EBIT was up around 40%. Margins increased from mid-72s to 74%.
Negative Updates
Limited Market Penetration Outside North America
While the U.S. market sees significant growth, markets in Europe and Asia, especially China, remain challenging due to market dynamics and regulatory issues.
Read all updates
Q4-2025 Updates
Positive
Negative
Significant Revenue and Profit Growth
Revenue increased by just under 32%, profit after tax rose approximately 40%, and underlying EBIT was up around 40%. Margins increased from mid-72s to 74%.
Read all positive updates
Company Guidance
During the Pro Medicus Limited Full Year Results Briefing, CEO Dr. Sam Hupert highlighted significant achievements for FY '25, with key financial metrics showing substantial improvement. Revenue increased by nearly 32%, profit after tax rose by approximately 40%, and underlying EBIT also saw a 40% rise. Margins improved from mid-72% to 74%, leading to a 36% increase in retained earnings. The company announced a fully franked dividend of $0.30 per share for the half, a 37.5% increase. Pro Medicus secured seven contracts worth $520 million, renewed two large contracts totaling $130 million, and achieved $39 million in upgrades. The company's forward revenue increased from the low $600 million range to $948 million over a five-year period. Additionally, Pro Medicus made strides in cloud deployment, research collaborations, and expanded its product offerings, setting a strong foundation for future growth.Pro Medicus Limited Financial Statement Overview
Summary
Income Statement
90
Very Positive
Balance Sheet
85
Very Positive
Cash Flow
75
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 240.57M | 212.91M | 161.43M | 124.90M | 93.46M | 67.88M |
| Gross Profit | 188.62M | 212.60M | 122.24M | 92.36M | 92.94M | 46.66M |
| EBITDA | 188.50M | 164.85M | 120.69M | 91.69M | 69.64M | 49.53M |
| Net Income | 234.69M | 115.22M | 82.79M | 60.65M | 44.44M | 30.85M |
Balance Sheet | ||||||
| Total Assets | 533.91M | 338.70M | 257.43M | 202.13M | 157.05M | 125.57M |
| Cash, Cash Equivalents and Short-Term Investments | 223.59M | 209.19M | 154.89M | 121.50M | 90.55M | 61.82M |
| Total Debt | 4.32M | 2.25M | 2.07M | 1.85M | 2.28M | 2.62M |
| Total Liabilities | 144.99M | 81.74M | 69.70M | 63.36M | 55.32M | 43.89M |
| Stockholders Equity | 388.93M | 256.96M | 187.73M | 138.78M | 101.73M | 81.68M |
Cash Flow | ||||||
| Free Cash Flow | 135.53M | 103.95M | 80.08M | 58.33M | 53.20M | 31.33M |
| Operating Cash Flow | 136.00M | 111.33M | 86.78M | 64.77M | 62.23M | 39.02M |
| Investing Cash Flow | -23.89M | -6.58M | -78.07M | -9.79M | -17.56M | -27.40M |
| Financing Cash Flow | -76.22M | -57.62M | -39.84M | -27.53M | -23.31M | -14.05M |
Pro Medicus Limited Technical Analysis
Negative
114.60
Price Trends
141.57
Negative
189.72
Negative
244.94
Negative
Market Momentum
-6.62
Negative
35.41
Neutral
14.08
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PME, the sentiment is Negative. The current price of 114.6 is below the 20-day moving average (MA) of 125.05, below the 50-day MA of 141.57, and below the 200-day MA of 244.94, indicating a bearish trend. The MACD of -6.62 indicates Negative momentum. The RSI at 35.41 is Neutral, neither overbought nor oversold. The STOCH value of 14.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:PME.
Pro Medicus Limited Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | AU$11.97B | 33.69 | 50.70% | 0.24% | 31.88% | 39.10% | |
67 Neutral | AU$130.27M | 26.51 | 4.37% | ― | 10.06% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | AU$64.63M | -6.28 | -23.86% | ― | 15.99% | 22.05% | |
47 Neutral | AU$19.56M | 3.95 | 7.57% | ― | 28.91% | -1050.00% | |
43 Neutral | AU$35.53M | -3.13 | -1009.84% | ― | 25.98% | 22.10% |
* Healthcare Sector Average
AU:PME
Pro Medicus Limited
114.60
-84.44
-42.42%
AU:M7T
Mach7 Technologies
0.28
-0.07
-19.12%
AU:RHT
Resonance Health Ltd
0.04
<0.01
7.89%
AU:ALC
Alcidion Group Limited
0.10
0.02
21.25%
AU:PCK
PainChek Ltd
0.17
-0.18
-51.43%
Pro Medicus Limited Corporate Events
Pro Medicus reshapes senior leadership to support global imaging growth
Mar 15, 2026
Pro Medicus has reshaped its senior leadership, appointing long-serving Chief Financial Officer Clayton Hatch to the newly created dual roles of Head of Business Operations and Head of Investor Relations, where he will oversee operational initiati...
Pro Medicus secures A$40m in U.S. imaging contract renewals
Mar 8, 2026
Pro Medicus’ U.S. subsidiary Visage Imaging has secured two five-year contract renewals worth a minimum of A$40 million, underscoring the strength of its Visage 7 enterprise imaging platform in major U.S. healthcare markets. The company rene...
Pro Medicus Director Anthony Hall Increases Shareholding via On-Market Purchase
Feb 26, 2026
Pro Medicus director Anthony Barry Hall has increased his direct holding in the company through an on-market purchase of 8,146 ordinary shares at $122.00 per share. Following the transaction, Hall’s total interest rose to 24,174,166 shares, ...
Pro Medicus Director Anthony Hall Increases Equity Stake via On-Market Share Purchase
Feb 25, 2026
Pro Medicus director Anthony Barry Hall has increased his direct interest in the company through an on-market purchase of additional ordinary shares. The transaction reflects a modest increase in his overall holding structure across personal, supe...
Pro Medicus Director Anthony Hall Increases Shareholding via On-Market Purchase
Feb 25, 2026
Pro Medicus director Anthony Barry Hall has increased his direct shareholding in the company through an on-market trade. Hall acquired 8,500 ordinary shares at $110.13 per share via Research Corporation Pty Ltd as trustee for the Anthony Hall Fami...
Pro Medicus Director Sam Hupert Increases Shareholding via On‑Market Purchase
Feb 25, 2026
Pro Medicus Limited has disclosed a change in the shareholding of director Sam Aaron Hupert, who increased his direct interest in the company through an on‑market purchase. Hupert acquired 4,500 ordinary shares at $108.72 per share via ALLHC...
Pro Medicus Director Modestly Increases Shareholding via On-Market Purchase
Feb 24, 2026
Pro Medicus Limited has reported a small increase in the shareholding of director Peter Terence Kempen, reflecting a further on-market investment in the company. Kempen holds his interest directly and through related entities, including a superann...
Pro Medicus Sets Date for HY26 Results and Investor Webcast
Jan 19, 2026
Pro Medicus Limited has announced that it will release its half-year 2026 financial results on Thursday, 12 February 2026, underscoring an upcoming milestone for investors and analysts tracking the health imaging specialist’s performance. Th...
Pro Medicus Issues 47,930 Unquoted Performance Rights Under Employee Incentive Scheme
Jan 13, 2026
Pro Medicus Limited has notified the market of the issue of 47,930 unquoted performance rights under its employee incentive scheme, effective 3 September 2021. The move underscores the company’s continued use of equity-based remuneration to ...
Pro Medicus Announces Lapse of 3,134 Performance Rights
Jan 13, 2026
Pro Medicus Limited has notified the market that 3,134 performance rights (PMEAL) have lapsed after the conditions attached to these rights were not met or became incapable of being satisfied, effective 31 October 2025. The cessation of these secu...
Pro Medicus to Issue 27,986 Unquoted Performance Rights Under Incentive Scheme
Jan 13, 2026
Pro Medicus Limited has notified the market of the planned issue of 27,986 unquoted performance rights under its employee incentive scheme, scheduled for 3 September 2025. The move underscores the company’s ongoing use of equity-based remune...
Pro Medicus Issues 40,358 Unquoted Performance Rights Under Staff Incentive Plan
Jan 13, 2026
Pro Medicus Limited has notified the market of the issue of 40,358 unquoted performance rights under its employee incentive scheme, with an issue date of 28 August 2024. The move underscores the company’s ongoing use of equity-based remunera...
Pro Medicus Cancels 40,876 Shares Following On‑Market Buy‑Back
Jan 5, 2026
Pro Medicus Limited has cancelled 40,876 ordinary fully paid shares following an on‑market buy-back completed on 19 December 2025. The reduction in issued capital marginally enhances earnings per share and reflects ongoing capital management...
Pro Medicus Director Peter Kempen Increases Shareholding via On-Market Purchase
Dec 30, 2025
Pro Medicus Limited has disclosed a small on-market share purchase by non-executive director Peter Terence Kempen, who increased his direct and associated holdings by 600 ordinary shares at a price of $224 per share. Following the transaction, Kem...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.