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Pro Medicus Limited (AU:PME)
ASX:PME

Pro Medicus Limited (PME) AI Stock Analysis

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AU:PME

Pro Medicus Limited

(Sydney:PME)

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Neutral 69 (OpenAI - 4o)
Rating:69Neutral
Price Target:
AU$283.00
▲(14.73% Upside)
Pro Medicus Limited's strong financial performance and positive earnings call are significant strengths, highlighting robust growth and strategic advancements. However, the technical analysis indicates bearish momentum, and the high P/E ratio suggests potential overvaluation. These factors, combined with challenges in market expansion outside North America, result in a moderate overall stock 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 (PME) vs. iShares MSCI Australia ETF (EWA)

Pro Medicus Limited Business Overview & Revenue Model

Company DescriptionPro 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 MoneyPro Medicus Limited generates revenue primarily through the sale and licensing of its software products and services, which includes annual subscription fees for its software platforms. Key revenue streams include the sale of its Visage Imaging software licenses, support and maintenance services, and software updates. The company also earns revenue from long-term contracts with healthcare providers and institutions that require ongoing access to its imaging solutions. Significant partnerships with hospitals and healthcare networks contribute to its earnings, as these collaborations often involve multi-year agreements that provide a steady revenue flow. Additionally, PME's focus on international expansion, particularly in North America and Europe, enhances its market reach and potential for growth, further bolstering its financial performance.

Pro Medicus Limited Earnings Call Summary

Earnings Call Date:Aug 13, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Feb 17, 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.
Q4-2025 Updates
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%.
Record Year for Sales and Contracts
Won 7 contracts totaling $520 million, renewed 2 large contracts worth $130 million, and secured upgrades for additional products with existing clients for a total of $39 million.
Expansion in North America
North America remains the largest market, contributing to 90% of revenue. Significant contracts included a $330 million contract with Trinity and $57 million with BayCare.
Advancements in Cloud and AI
Pro Medicus is the only company with a 100% full cloud solution at scale, with the ability to work across AWS, Azure, and Google GCP. New AI initiatives include a breast cancer detection algorithm developed with NYU.
Strategic Partnerships and Collaborations
Research collaboration agreement signed with UCSF, adding to partnerships with Mayo and NYU.
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.
Potential Challenges in Pathology Market
The digital pathology market is nascent and difficult to size, with uncertainties around adoption and historical slide scanning.
Competitive Pressure and Market Dynamics
Despite strong financial metrics, concerns remain about competition from major players like GE and Siemens, as well as emerging start-ups in cloud and AI sectors.
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
Pro Medicus Limited exhibits strong financial health with robust revenue and profit growth, efficient operations, and a solid balance sheet. Despite a slight decline in cash flow growth, 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
90
Very Positive
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
85
Very Positive
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
75
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue212.98M212.91M161.43M124.90M93.46M67.88M
Gross Profit169.16M212.60M122.24M92.36M92.94M46.66M
EBITDA170.62M164.85M120.69M91.69M69.64M49.53M
Net Income115.22M115.22M82.79M60.65M44.44M30.85M
Balance Sheet
Total Assets338.70M338.70M257.43M202.13M157.05M125.57M
Cash, Cash Equivalents and Short-Term Investments209.19M209.19M154.89M121.50M90.55M61.82M
Total Debt2.25M2.25M2.07M1.85M2.28M2.62M
Total Liabilities81.74M81.74M69.70M63.36M55.32M43.89M
Stockholders Equity256.96M256.96M187.73M138.78M101.73M81.68M
Cash Flow
Free Cash Flow118.43M103.95M80.08M58.33M53.20M31.33M
Operating Cash Flow118.87M111.33M86.78M64.77M62.23M39.02M
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 Price246.67
Price Trends
50DMA
272.63
Negative
100DMA
290.24
Negative
200DMA
273.43
Negative
Market Momentum
MACD
-4.84
Negative
RSI
34.52
Neutral
STOCH
5.74
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 246.67 is below the 20-day moving average (MA) of 256.02, below the 50-day MA of 272.63, and below the 200-day MA of 273.43, indicating a bearish trend. The MACD of -4.84 indicates Negative momentum. The RSI at 34.52 is Neutral, neither overbought nor oversold. The STOCH value of 5.74 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$26.02B225.7950.70%0.22%31.88%39.10%
64
Neutral
AU$126.24M78.331.89%10.06%
55
Neutral
AU$74.13M-8.12-8647.54%25.98%22.10%
52
Neutral
AU$23.25M-12.89-17.05%28.91%-1050.00%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
46
Neutral
AU$118.66M-12.35%15.99%22.05%
40
Underperform
AU$16.45M-0.24-240.60%-48.41%-7200.00%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:PME
Pro Medicus Limited
247.55
0.85
0.34%
AU:M7T
Mach7 Technologies
0.59
0.25
73.53%
AU:RHT
Resonance Health Ltd
0.05
-0.02
-28.57%
AU:MDR
MedAdvisor Limited
0.02
-0.28
-93.33%
AU:ALC
Alcidion Group Limited
0.10
0.04
66.67%
AU:PCK
PainChek Ltd
0.34
0.07
25.93%

Pro Medicus Limited Corporate Events

Pro Medicus Addresses Data Breach Speculation
Dec 4, 2025

Pro Medicus Limited has addressed recent speculation regarding a data breach involving Visage Imaging. The company confirmed that an unauthorized access incident occurred in July 2025, affecting a single email inbox, but no client systems or patient data were compromised. The breach was contained, and external cybersecurity experts were engaged. While some personal information of approximately 100 employees might have been accessed, no financial loss or operational impact was reported. Pro Medicus has informed affected individuals and relevant authorities, ensuring compliance with legal obligations.

Pro Medicus Expands US Market with $25M BayCare Deal
Nov 30, 2025

Pro Medicus Limited has secured a $25 million, 7-year contract with BayCare, a leading healthcare system in Florida, to implement its Visage 7 Open Archive in the cloud. This deal extends their existing contract to a full-stack solution, enhancing Pro Medicus’s expansion into the North American IDN market and offering potential financial upside through a transaction-based model.

Pro Medicus Limited AGM Results: All Resolutions Carried
Nov 24, 2025

Pro Medicus Limited held its Annual General Meeting on November 24, 2025, where all resolutions on the agenda were successfully carried. Key resolutions included the approval of the remuneration report and the re-election of board members, indicating strong shareholder support and stability in the company’s governance.

Pro Medicus Limited Reports Strong Operational and Financial Success in FY25
Nov 24, 2025

Pro Medicus Limited reported a successful year both operationally and financially, attributing its achievements to its robust business model and the dedication of its staff. The company secured several new contracts, including its largest to date with Trinity Health, and continues to expand its product offerings through strategic acquisitions and licensing, strengthening its market position in North America and Germany.

Pro Medicus Secures A$29M in New Contracts, Strengthening Market Position
Nov 23, 2025

Pro Medicus Limited’s U.S. subsidiary, Visage Imaging, Inc., has signed three new contracts valued at a minimum of A$29 million, expanding its presence in the healthcare imaging market. These contracts, which are cloud-based and transaction-oriented, involve a pediatric hospital, a cancer center, and a regional healthcare provider, highlighting the company’s adaptability across various segments. This development increases the company’s total contract value for the first half of FY26 to A$273 million, reinforcing its strong market position and future growth potential.

Pro Medicus Secures A$44M Contract with Advanced Radiology Management
Nov 17, 2025

Pro Medicus Limited’s U.S. subsidiary, Visage Imaging, Inc., has secured a significant 5-year, A$44M contract with Advanced Radiology Management, a prominent private radiology group. This agreement involves implementing the cloud-based Visage 7 Enterprise Imaging Platform, which aims to enhance diagnostic interpretation efficiency. The rollout is set to begin immediately, with the platform expected to go live by late Q2 2026. This contract underscores Pro Medicus’s growing influence in the North American healthcare IT market and addresses the increasing demand for efficient radiology solutions amid a global shortage of radiologists.

Pro Medicus Limited Updates on Daily Buy-Back Progress
Nov 16, 2025

Pro Medicus Limited has announced a daily update on its ongoing on-market buy-back program, with a total of 3,915 ordinary fully paid securities bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure effectively, potentially enhancing shareholder value and signaling confidence in its financial health.

Pro Medicus Limited Updates on Buy-Back Program
Nov 13, 2025

Pro Medicus Limited has announced an update regarding its ongoing on-market buy-back program. As of November 14, 2025, the company has repurchased a total of 31,086 ordinary fully paid securities, including 3,904 bought back on the previous day. This buy-back initiative is part of the company’s strategy to optimize its capital structure and potentially enhance shareholder value.

Pro Medicus Limited Updates on Share Buy-Back Program
Nov 13, 2025

Pro Medicus Limited has announced an update regarding its ongoing buy-back program, detailing the acquisition of 3,865 ordinary fully paid securities on the previous day, bringing the total bought back to 23,317. This buy-back initiative is part of the company’s strategy to optimize its capital structure and potentially enhance shareholder value.

Pro Medicus Limited Updates on Market Buy-Back Program
Nov 11, 2025

Pro Medicus Limited has announced an update on its ongoing on-market buy-back program, with a recent acquisition of 3,924 ordinary fully paid securities. This buy-back strategy is part of the company’s efforts to manage its capital structure and potentially enhance shareholder value, reflecting a strategic move to optimize financial performance and market positioning.

Pro Medicus Updates on Share Buy-Back Progress
Nov 10, 2025

Pro Medicus Limited has announced an update regarding its ongoing on-market buy-back program. As of November 11, 2025, the company has repurchased a total of 19,393 ordinary fully paid securities, including 3,902 securities bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Pro Medicus Limited Updates on Buy-Back Program
Nov 7, 2025

Pro Medicus Limited has announced an update regarding its ongoing on-market buy-back program. As of the latest notification, the company has repurchased a total of 11,559 ordinary fully paid securities, with 3,911 bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Pro Medicus Announces Hybrid AGM for November 2025
Oct 23, 2025

Pro Medicus Limited has announced its Annual General Meeting (AGM) scheduled for November 24, 2025, which will be conducted as a hybrid meeting. Shareholders can participate in person or online, with provisions made for voting and asking questions through a dedicated portal. This meeting is crucial for stakeholders to engage with the company’s board and discuss resolutions, reflecting Pro Medicus’s commitment to transparency and shareholder engagement.

Pro Medicus Secures A$10M Imaging Contract with German Medical Centers
Oct 7, 2025

Pro Medicus Limited has secured a 5-year, A$10 million contract to implement its Visage 7 Enterprise Imaging Platform at University Hospital Heidelberg and the German Cancer Research Institute, among other associated hospitals. This deal expands Pro Medicus’s presence in the European market, replacing and consolidating existing legacy systems to enhance diagnostic and research capabilities, thereby supporting cutting-edge medical research and patient care.

Pro Medicus Unaffected by US Pharmaceutical Tariffs
Sep 29, 2025

Pro Medicus Limited announced that it is not affected by the recently announced US tariffs on pharmaceuticals, as the company does not engage in the production or sale of pharmaceutical products. This clarification ensures that Pro Medicus’s operations remain unaffected by these tariffs, maintaining its focus on providing cutting-edge medical imaging solutions without any direct implications from the pharmaceutical industry tariffs.

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.Date of analysis: Nov 05, 2025