Pro Medicus Limited (PME) AI Stock Analysis

• Market Cap: AU$31.38B
• Dividend Yield: 0.18%
• Average Volume (3M): 184.89K
• Price to Earnings (P/E): 272.3
• Beta (1Y): 1.64
• Revenue Growth: 31.88%
• EPS Growth: 39.10%
• Country: AU
• Employees: 79
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.61
• Shares Outstanding: 104,510,840
• 10 Day Avg. Volume: 170,042
• 30 Day Avg. Volume: 184,888
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$323.37
• Price Target Upside: 8.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 73 Outperform
• Price Target: AU$333.00 ▲(11.74% Upside)

Pro Medicus Limited's strong financial performance and positive earnings call are the most significant factors contributing to the score. However, the high P/E ratio suggests overvaluation, and technical indicators point to weak momentum, which temper the overall score.

Positive Factors

Revenue Growth

Pro Medicus's strong revenue and profit growth indicate a robust business model and increasing market demand, supporting future expansion.

Contract Wins

Securing significant contracts enhances revenue visibility and strengthens Pro Medicus's market position in the healthcare IT sector.

Cloud and AI Advancements

Leading in cloud and AI technology positions Pro Medicus as a competitive player, driving innovation and attracting new clients.

Negative Factors

Market Penetration Challenges

Limited penetration outside North America restricts growth opportunities and diversifying revenue streams, impacting long-term expansion.

Competitive Pressure

Intense competition from established and emerging players could pressure margins and market share, challenging Pro Medicus's growth.

Pathology Market Uncertainty

Uncertainty in the digital pathology market could hinder Pro Medicus's ability to capitalize on new opportunities, affecting future growth.

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: Negative
• Last Price: 298.02
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 298.02 is below the 20-day moving average (MA) of 304.81, below the 50-day MA of 305.10, and above the 200-day MA of 274.13, indicating a neutral trend. The MACD of -0.53 indicates Positive momentum. The RSI at 44.60 is Neutral, neither overbought nor oversold. The STOCH value of 20.15 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PME	73 Outperform	AU$31.38B	272.30	50.70%	0.18%	31.88%	39.10%
ALC	58 Neutral	AU$126.24M	80.83	1.89%	―	10.06%	―
PCK	55 Neutral	AU$165.10M	―	-8647.54%	―	25.98%	21.43%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
M7T	49 Neutral	$72.84M	―	-12.35%	―	15.99%	22.05%
RHT	47 Neutral	AU$20.24M	140.00	-17.05%	―	28.91%	-1050.00%
MDR	38 Underperform	AU$26.56M	110.00	-240.60%	―	-48.41%	-7200.00%

Pro Medicus Limited Corporate Events

Pro Medicus Director Increases Shareholding

Pro Medicus Limited announced a change in the director’s interest, with Dr. Sam Aaron Hupert acquiring 50,000 ordinary shares through an off-market transfer. This transfer, valued at $299 per share, increases Dr. Hupert’s total holdings to 24,187,660 shares, reflecting a strategic move in consolidating his stake in the company.

The most recent analyst rating on (AU:PME) stock is a Buy with a A$350.00 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 ATO for CloudPACS with U.S. Veterans’ Affairs

Pro Medicus Limited announced that its U.S. subsidiary, Visage Imaging, Inc., has received an Authority to Operate (ATO) from the U.S. Department of Veterans’ Affairs for its Visage 7 | CloudPACS platform. This milestone allows the transition of their current on-premise system to the Veterans Affairs Enterprise Cloud, marking a significant step in their collaboration with the Veterans’ Health Administration. The achievement is expected to serve as a reference for other Veterans’ Integrated Service Networks considering cloud migration, potentially enhancing Pro Medicus’s positioning in the federal healthcare sector.

The most recent analyst rating on (AU:PME) stock is a Buy with a A$338.00 price target. To see the full list of analyst forecasts on Pro Medicus Limited stock, see the AU:PME Stock Forecast page.

Pro Medicus Limited Announces Cessation of Securities

Pro Medicus Limited announced the cessation of 47,930 performance rights due to unmet conditions, as of August 25, 2025. This development may affect the company’s capital structure and could have implications for stakeholders regarding the company’s performance metrics and future financial planning.

The most recent analyst rating on (AU:PME) stock is a Buy with a A$361.00 price target. To see the full list of analyst forecasts on Pro Medicus Limited stock, see the AU:PME Stock Forecast page.

Pro Medicus Limited Expands ASX Quotation with New Securities

Pro Medicus Limited has announced the quotation of 47,930 ordinary fully paid securities on the Australian Securities Exchange (ASX) as of August 25, 2025. This move reflects the company’s ongoing efforts to enhance its market presence and provide value to its stakeholders by expanding its financial instruments available for trading.

The most recent analyst rating on (AU:PME) stock is a Buy with a A$361.00 price target. To see the full list of analyst forecasts on Pro Medicus Limited stock, see the AU:PME Stock Forecast page.