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Pro Medicus Limited
(Sydney:PME)
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Rating:70Outperform
Price Target:
AU$231.00
▲(55.30% Upside)
Action:Upgraded
Date:07/04/26
The score is primarily driven by strong financial performance (high profitability, solid growth, and a strong balance sheet), partially offset by very overbought technical conditions and a demanding valuation (high P/E with low dividend yield).
Positive Factors
High profitability & margins
Sustained high gross, EBIT and EBITDA margins indicate an efficient, scalable software business able to convert revenue into profits. Durable margin strength supports reinvestment in R&D, funds global deployments, cushions cycles, and underpins long-term free cash generation and shareholder returns.
Negative Factors
Slowing free cash flow growth
A slowdown in free cash flow growth, even from a healthy base, limits discretionary capacity for accelerated R&D, large rollouts, or special distributions. Over several quarters this trend could constrain investment pacing and increase sensitivity to project timing and working-capital swings.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability & margins
Sustained high gross, EBIT and EBITDA margins indicate an efficient, scalable software business able to convert revenue into profits. Durable margin strength supports reinvestment in R&D, funds global deployments, cushions cycles, and underpins long-term free cash generation and shareholder returns.
Read all positive factors
Pro Medicus Limited (PME) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$20.35B
Dividend Yield0.24%
Average Volume (3M)193.04K
Price to Earnings (P/E)85.2
Beta (1Y)1.44
Revenue Growth30.33%
EPS Growth138.71%
CountryAU
Employees132
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)2.25
Shares Outstanding104,469,960
10 Day Avg. Volume215,756
30 Day Avg. Volume193,037
Financial Highlights & Ratios
PEG Ratio6.60
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$207.24Price Target Upside39.33% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)1.8
Revenue Forecast (FY)AU$337.20M
Pro Medicus Limited Business Overview & Revenue Model
Company Description
Established in 1983 and based in Richmond, Australia, Pro Medicus Limited is a leading provider of medical imaging software and services. The company develops and delivers advanced solutions to hospitals, diagnostic imaging groups, and other healt...
How the Company Makes Money
Pro Medicus primarily makes money by licensing its medical imaging software (particularly the Visage platform) to healthcare providers under contract arrangements, typically structured as recurring software license fees with associated support and...
Pro Medicus Limited Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 18, 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
Neutral
148.74
Price Trends
162.74
Positive
145.90
Positive
189.27
Positive
Market Momentum
10.57
Positive
55.78
Neutral
13.58
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PME, the sentiment is Neutral. The current price of 148.74 is below the 20-day moving average (MA) of 194.56, below the 50-day MA of 162.74, and below the 200-day MA of 189.27, indicating a neutral trend. The MACD of 10.57 indicates Positive momentum. The RSI at 55.78 is Neutral, neither overbought nor oversold. The STOCH value of 13.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | AU$20.35B | 85.25 | 72.67% | 0.24% | 30.33% | 138.71% | |
67 Neutral | AU$128.98M | 33.45 | 4.37% | ― | 36.43% | ― | |
55 Neutral | AU$71.68M | -7.51 | -23.86% | ― | -11.45% | -97.22% | |
53 Neutral | AU$925.63M | -33.93 | -35.63% | ― | 123.08% | 5.34% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | AU$34.88M | -6.00 | -14.19% | ― | 0.03% | -5.85% | |
46 Neutral | AU$69.61M | -8.97 | -59.96% | ― | ― | ― |
* Healthcare Sector Average
AU:PME
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Pro Medicus Limited Corporate Events
Echo IQ secures strategic Pro Medicus investment and U.S. reseller partnership
Jun 24, 2026
Echo IQ Limited has signed a binding Heads of Agreement with Pro Medicus Limited that sets the framework for a strategic investment of up to A$20 million and a U.S. commercial partnership centred on Echo IQ’s AI-powered cardiovascular diagno...
Pro Medicus Dropped from S&P/ASX 50 in June Index Shake-Up
Jun 5, 2026
SP Dow Jones Indices will remove Pro Medicus from the SP/ASX 50 Index in its June 2026 quarterly rebalance, a change that may reduce index-driven demand for the stock and potentially impact its visibility among large-cap Australian equities. The r...
Pro Medicus expands U.S. footprint and leans into AI to strengthen competitive edge
May 31, 2026
Pro Medicus has secured three significant U.S. contracts, including a A$90 million, seven-year cloud-based deal with Beth Israel Lahey Health in Boston, plus agreements with University of Maryland Medical System and Tidal Health. These wins expand...
Pro Medicus Extends Allegheny Health Network Deal With A$28m Renewal
May 31, 2026
Pro Medicus has secured a five-year, A$28 million contract renewal with Allegheny Health Network, one of the largest healthcare providers in the Pittsburgh region, marking the third term of their decade-long partnership. The renewed agreement adds...
Pro Medicus lands A$16m cloud imaging deal with TidalHealth
May 31, 2026
Pro Medicus has secured a seven-year, A$16 million contract with U.S. healthcare provider TidalHealth for its Visage 7 imaging platform, including viewer, workflow, open archive and cardiology modules, to be delivered via the cloud on a transactio...
Pro Medicus wins A$23m cloud imaging deal with University of Maryland Medical System
Apr 7, 2026
Pro Medicus’ U.S. subsidiary Visage Imaging has secured a five-year, A$23 million contract to deploy its cloud-based Visage 7 Enterprise Imaging Platform across the University of Maryland Medical System. The deal covers Visage 7 Viewer and V...
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.