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Pro Medicus Limited
(Sydney:PME)
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Rating:71Outperform
Price Target:
AU$192.00
▲(0.73% Upside)
Action:Reiterated
Date:08/19/26
Strong financial performance (high growth, high margins, strong cash flow, minimal debt) drives the score, tempered by expensive valuation (high P/E, low yield) and only neutral technical momentum signals.
Positive Factors
Strong Revenue Compounding
Five-year revenue growth demonstrates sustained adoption of Pro Medicus’s medical imaging software and expanding enterprise reach. A larger recurring installed base can support future contract expansion, improve operating leverage, and reinforce the company’s position in healthcare imaging workflows.
Negative Factors
2026 Earnings Distortion
The unusually high 2026 bottom-line result is unlikely to represent a normal operating run rate if it includes a material one-off or non-operating benefit. Future reported earnings may therefore normalize lower, making underlying performance harder to assess from the latest period alone.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Compounding
Five-year revenue growth demonstrates sustained adoption of Pro Medicus’s medical imaging software and expanding enterprise reach. A larger recurring installed base can support future contract expansion, improve operating leverage, and reinforce the company’s position in healthcare imaging workflows.
Read all positive factors
Pro Medicus Limited (PME) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$18.17B
Dividend Yield0.4%
Average Volume (3M)256.38K
Price to Earnings (P/E)68.5
Beta (1Y)1.30
Revenue Growth22.87%
EPS Growth130.30%
CountryAU
Employees153
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)2.54
Shares Outstanding104,469,960
10 Day Avg. Volume238,435
30 Day Avg. Volume256,383
Financial Highlights & Ratios
PEG Ratio0.61
Price to Book (P/B)47.13
Price to Sales (P/S)81.22
P/FCF Ratio156.19
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$220.14Price Target Upside15.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)1.82
Revenue Forecast (FY)AU$338.52M
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 makes money primarily by licensing its medical imaging software (notably the Visage 7 platform) to healthcare providers and imaging networks, with revenue typically comprising (1) upfront/implementation-related fees and (2) ongoing rec...
Pro Medicus Limited Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Feb 16, 2027
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
95
Very Positive
Balance Sheet
93
Very Positive
Cash Flow
90
Very Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 261.69M | 212.91M | 161.43M | 124.90M | 93.46M |
| Gross Profit | 211.15M | 212.60M | 122.24M | 92.36M | 92.94M |
| EBITDA | 204.18M | 164.85M | 120.69M | 91.69M | 69.64M |
| Net Income | 265.34M | 115.22M | 82.79M | 60.65M | 44.44M |
Balance Sheet | |||||
| Total Assets | 610.14M | 338.70M | 257.43M | 202.13M | 157.05M |
| Cash, Cash Equivalents and Short-Term Investments | 250.62M | 209.19M | 154.89M | 121.50M | 90.55M |
| Total Debt | 2.23M | 2.25M | 2.07M | 1.85M | 2.28M |
| Total Liabilities | 159.22M | 81.74M | 69.70M | 63.36M | 55.32M |
| Stockholders Equity | 450.92M | 256.96M | 187.73M | 138.78M | 101.73M |
Cash Flow | |||||
| Free Cash Flow | 136.08M | 103.95M | 80.08M | 58.33M | 53.20M |
| Operating Cash Flow | 136.52M | 111.33M | 86.78M | 64.77M | 62.23M |
| Investing Cash Flow | -21.28M | -6.58M | -78.07M | -9.79M | -17.56M |
| Financing Cash Flow | -75.55M | -57.62M | -39.84M | -27.53M | -23.31M |
Pro Medicus Limited Technical Analysis
Negative
190.60
Price Trends
185.05
Negative
165.50
Positive
170.72
Positive
Market Momentum
-1.32
Positive
43.44
Neutral
13.47
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 190.6 is above the 20-day moving average (MA) of 183.82, above the 50-day MA of 185.05, and above the 200-day MA of 170.72, indicating a neutral trend. The MACD of -1.32 indicates Positive momentum. The RSI at 43.44 is Neutral, neither overbought nor oversold. The STOCH value of 13.47 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | AU$18.17B | 68.48 | 63.19% | 0.40% | 22.87% | 130.30% | |
61 Neutral | AU$141.73M | 61.76 | 2.53% | ― | 26.61% | 41.67% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | AU$35.44M | -1.91 | -58.13% | ― | 2.08% | -195.31% | |
47 Neutral | AU$65.80M | -7.37 | -24.29% | ― | -17.35% | -47.29% | |
47 Neutral | AU$682.85M | -24.02 | -30.04% | ― | <0.01% | 2.08% | |
44 Neutral | AU$58.70M | -8.87 | -57.06% | ― | 603.32% | 10.57% |
* Healthcare Sector Average
AU:PME
Pro Medicus Limited
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Pro Medicus Limited Corporate Events
State Street Group Ceases to Be Substantial Holder in Pro Medicus
Sep 7, 2026
State Street Global Advisors and several affiliated entities have lodged a notice indicating they have ceased to be substantial holders in Pro Medicus Limited as of 3 September 2026. The filing, made under Australia’s Corporations Act, confi...
Pro Medicus wins A$25m cloud imaging deal with Valley Health
Aug 20, 2026
Pro Medicus’ U.S. subsidiary Visage Imaging has secured a seven-year, A$25 million contract with Valley Health, a six-hospital system serving regions of Virginia and West Virginia. The deal will see Valley Health adopt the Visage 7 “Fu...
Pro Medicus Sharpens Integrated and Climate Reporting Frameworks
Aug 18, 2026
Pro Medicus has reaffirmed its commitment to integrated reporting by aligning its Annual Report with the International Integrated Reporting Framework, aiming to provide a holistic view of its strategy, governance and performance. The company empha...
Pro Medicus Builds Momentum with Strong FY26 Underlying Growth and AI-Driven Expansion
Aug 17, 2026
Pro Medicus reported full-year results that met internal expectations, delivering higher revenue and profit on a constant currency basis and achieving its second-largest year for new contracts, supported by six major renewals and a surge in implem...
Pro Medicus lodges updated ASX corporate governance disclosures
Aug 17, 2026
Pro Medicus Limited has lodged its updated corporate governance statement for the year ended 30 June 2026, confirming it is available on the company’s website and has been approved by the board as at 14 August 2026. The filing, made together...
Pro Medicus Updates Governance Ahead of New Sustainability Rules
Aug 17, 2026
Pro Medicus Limited, a medical imaging technology provider, delivers diagnostic imaging software and related services to healthcare organisations. The company targets hospitals and clinical networks that depend on advanced radiology IT platforms f...
Pro Medicus lifts profit, signs $548m in imaging contracts
Aug 17, 2026
Pro Medicus reported strong FY26 results, with revenue rising 22.9% to $261.7 million and underlying NPAT up 24.1% to $144.7 million, while reported NPAT more than doubled to $265.3 million. The company remains debt-free, lifted its full-year divi...
Pro Medicus Delivers Surging Profit and Higher Dividends in FY26
Aug 17, 2026
Pro Medicus Limited reported a strong financial performance for the year ended 30 June 2026, with revenue from ordinary activities rising 22.9% to A$261.7 million and underlying profit before tax increasing 24.2% to A$205.2 million. Reported profi...
Pro Medicus clinches A$23m cloud imaging deal with St. Luke’s Health System
Aug 11, 2026
Pro Medicus’ U.S. subsidiary Visage Imaging has secured a seven-year, A$23 million contract to deploy its Visage 7 Enterprise Imaging Platform across St. Luke’s Health System’s network of 10 medical centres in three states. The c...
Pro Medicus strengthens investor outreach with new IR chief
Jul 7, 2026
Pro Medicus Limited has appointed experienced financial markets executive Garry Sherriff as Head of Investor Relations, effective 20 July 2026, in a move aimed at deepening engagement with institutional investors in Australia and offshore markets....
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...
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.