Pro Medicus Limited (PME) AI Stock Analysis

• Market Cap: $33.39B
• Dividend Yield: 0.15%
• Average Volume (3M): 150.15K
• Price to Earnings (P/E): 339.7
• Beta (1Y): 1.54
• Revenue Growth: 29.87%
• EPS Growth: 40.97%
• Country: AU
• Employees: 79
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.49
• Shares Outstanding: 104,462,906
• 10 Day Avg. Volume: 120,193
• 30 Day Avg. Volume: 150,151
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 140.85
• Enterprise Value/Gross Profit: 180.05
• Enterprise Value/Ebitda: 177.02
• 1Y Price Target: $316.71
• Price Target Upside: -0.98% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 81 Outperform
• Price Target: AU$358.00 ▲(11.93% Upside)

Pro Medicus Limited's strong financial performance and positive earnings call are the most significant factors driving its stock score. While technical indicators show bullish momentum, overvaluation concerns due to a high P/E ratio and low dividend yield slightly offset the strength. Overall, the company is well-positioned for growth, with positive market sentiment and significant contract wins.

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 a robust financial performance across income statement, balance sheet, and cash flow statement. The company demonstrates strong revenue growth, high profitability margins, minimal leverage, and effective cash management. Overall financial health is impressive, indicating potential for sustained growth.

Income Statement

Pro Medicus Limited has demonstrated strong revenue growth with a Revenue Growth Rate of 29.3% in the latest annual report. The company maintains high profitability with a Gross Profit Margin of 75.7% and a Net Profit Margin of 51.3%. Additionally, the EBIT Margin and EBITDA Margin are robust at 69.5% and 74.7% respectively, highlighting efficient operations. These metrics indicate a strong income statement performance.

Balance Sheet

The balance sheet reflects solid financial health, evidenced by a low Debt-to-Equity Ratio of 0.01, indicating minimal leverage. The Return on Equity (ROE) is impressive at 44.1%, underscoring effective management. The Equity Ratio is a strong 72.9%, suggesting a high proportion of assets financed by equity. Overall, the balance sheet is stable with strong equity backing.

Cash Flow

The cash flow statement is strong, with a Free Cash Flow Growth Rate of 37.3%, indicating significant cash generation capability. The Operating Cash Flow to Net Income Ratio is 1.05, and the Free Cash Flow to Net Income Ratio is 0.97, demonstrating excellent cash conversion. These metrics reflect strong cash flow management.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	161.43M	124.90M	93.46M	67.88M	56.82M
Gross Profit	122.24M	92.36M	92.94M	46.66M	56.42M
EBITDA	120.69M	91.69M	69.64M	49.53M	37.70M
Net Income	82.79M	60.65M	44.44M	30.85M	23.08M
Balance Sheet
Total Assets	257.43M	202.13M	157.05M	125.57M	95.64M
Cash, Cash Equivalents and Short-Term Investments	154.89M	121.50M	90.55M	61.82M	43.41M
Total Debt	2.07M	1.85M	2.28M	2.62M	2.28M
Total Liabilities	69.70M	63.36M	55.32M	43.89M	35.46M
Stockholders Equity	187.73M	138.78M	101.73M	81.68M	60.18M
Cash Flow
Free Cash Flow	80.08M	58.33M	53.20M	31.33M	23.72M
Operating Cash Flow	86.78M	64.77M	62.23M	39.02M	31.59M
Investing Cash Flow	-78.07M	-9.79M	-17.56M	-27.40M	-7.87M
Financing Cash Flow	-39.84M	-27.53M	-23.31M	-14.05M	-12.31M

Pro Medicus Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 319.85
• 50DMA: Positive
• 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 319.85 is below the 20-day moving average (MA) of 321.54, above the 50-day MA of 299.86, and above the 200-day MA of 256.33, indicating a neutral trend. The MACD of 4.98 indicates Positive momentum. The RSI at 57.89 is Neutral, neither overbought nor oversold. The STOCH value of 67.71 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	81 Outperform	$33.39B	339.72	52.66%	0.15%	29.87%	40.97%
Sector *	60 Neutral	HK$17.55B	4.98	-4.95%	3.61%	9.71%	-38.85%
TDMMF	―	$56.60M	―	-9.88%	―	―	―
RHT	60 Neutral	AU$17.47M	140.00	-3.11%	―	89.13%	69.57%
MDR	56 Neutral	AU$40.64M	110.00	-8.34%	―	-5.27%	50.29%
PCK	55 Neutral	AU$74.19M	―	-457.46%	―	21.93%	10.34%
ALC	53 Neutral	AU$147.72M	―	-5.63%	―	-11.96%	7.50%

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.