ASX:PME

Stock Analysis Report

Executive Summary

Pro Medicus Limited provides radiology information systems (RIS), picture archiving and communication systems (PACS), and advanced visualization solutions in Australia, Europe, and North America.

Snowflake

Fundamentals

Flawless balance sheet with outstanding track record.


Similar Companies

Share Price & News

How has Pro Medicus's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.5%

PME

0.8%

AU Healthcare Services

2.5%

AU Market


1 Year Return

207.5%

PME

120.0%

AU Healthcare Services

11.1%

AU Market

Return vs Industry: PME exceeded the Australian Healthcare Services industry which returned 120% over the past year.

Return vs Market: PME exceeded the Australian Market which returned 11.1% over the past year.


Shareholder returns

PMEIndustryMarket
7 Day2.5%0.8%2.5%
30 Day8.2%13.8%0.7%
90 Day3.3%11.0%1.4%
1 Year209.2%207.5%121.2%120.0%17.5%11.1%
3 Year515.7%503.6%42.3%39.1%37.8%19.4%
5 Year3434.6%3300.0%490.8%438.1%51.7%17.6%

Price Volatility Vs. Market

How volatile is Pro Medicus's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Pro Medicus undervalued compared to its fair value and its price relative to the market?

165.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: PME (A$30.6) is trading above our estimate of fair value (A$7.65)

Significantly Undervalued: PME is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PME is poor value based on its PE Ratio (165.7x) compared to the Healthcare Services industry average (41.4x).

PE vs Market: PME is poor value based on its PE Ratio (165.7x) compared to the Australian market (18x).


Price to Earnings Growth Ratio

Low PEG Ratio: PME is poor value based on its PEG Ratio (6.1x)


Price to Book Ratio

PB vs Industry: PME is overvalued based on its PB Ratio (64.3x) compared to the AU Healthcare Services industry average (8.3x).


Next Steps

Future Growth

How is Pro Medicus forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

27.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PME's forecast earnings growth (27.3% per year) is above the savings rate (2.3%).

Earnings vs Market: PME's earnings (27.3% per year) are forecast to grow faster than the Australian market (10.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PME's revenue (19.8% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: PME's revenue (19.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: PME's Return on Equity is forecast to be very high in 3 years time (47.5%).


Next Steps

Past Performance

How has Pro Medicus performed over the past 5 years?

39.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PME's earnings have grown significantly by 39.3% per year over the past 5 years.

Accelerating Growth: PME's earnings growth over the past year (91.9%) exceeds its 5-year average (39.3% per year).

Earnings vs Industry: PME earnings growth over the past year (91.9%) exceeded the Healthcare Services industry 6.3%.


Return on Equity

High ROE: PME's Return on Equity (38.8%) is considered high.


Return on Assets

ROA vs Industry: PME has a higher Return on Assets than the Healthcare Services industry average last year.


Return on Capital Employed

ROCE Improving: PME has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Pro Medicus's financial position?


Financial Position Analysis

Short Term Liabilities: PME's short term assets (A$52.5M) exceeds its short term liabilities (A$13.9M)

Long Term Liabilities: PME's short term assets (52.5M) exceeds its long term liabilities (21.1M)


Debt to Equity History and Analysis

Debt Level: PME is debt free.

Reducing Debt: PME has not had any debt for past 5 years.

Debt Coverage: PME has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: PME has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: PME has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if PME's debt is covered by short term assets.


Next Steps

Dividend

What is Pro Medicus's current dividend yield, its reliability and sustainability?

0.29%

Current Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%2.5%markettop25%5.6%industryaverage1.0%forecastin3Years0.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PME's dividend (0.29%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.46%).

High Dividend: PME's dividend (0.29%) is low compared to the top 25% of dividend payers in the Australian market (5.56%).

Stable Dividend: PME is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: PME is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: PME is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PME's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

What is the CEO of Pro Medicus's salary, the management and board of directors tenure and is there insider trading?

8.8yrs

Average management tenure


CEO

Sam Hupert 0

9yrs

Tenure

AU$507,916

Compensation

Dr. Sam Aaron Hupert, M.B.B.S. has been the Chief Executive Officer and Managing Director at Pro Medicus Limited (alternate name: PRO Medicus Ltd.) since October 2010. Dr. Hupert serves as Chief Executive  ...


CEO Compensation Analysis

Compensation vs. Market: Sam's total compensation ($USD342.91K) is below average for companies of similar size in the Australian market ($USD1.50M).

Compensation vs Earnings: Sam's compensation has been consistent with company performance over the past year.


Management Age and Tenure

8.8yrs

Average Tenure

Experienced Management: PME's management team is seasoned and experienced (8.8 years average tenure).


Board Age and Tenure

9.2yrs

Average Tenure

Experienced Board: PME's board of directors are considered experienced (9.2 years average tenure).


Insider Trading

Insider Buying: PME insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellAU$36,100,00005 Sep 19
Sam Hupert
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares1,000,000
Max PriceAU$36.10
SellAU$36,100,00005 Sep 19
Anthony Hall
EntityIndividual
Role
Member of the Board of Directors
Co-Founder
Shares1,000,000
Max PriceAU$36.10

Ownership Breakdown


Management Team

  • Anthony Hall

    Co-Founder

    • Tenure: 36.8yrs
    • Compensation: AU$380.27k
  • Sam Hupert

    Co-Founder

    • Tenure: 9yrs
    • Compensation: AU$507.92k
  • Danny Tauber

    General Manager of Australia

    • Tenure: 8.8yrs
    • Compensation: AU$560.41k
  • Malte Westerhoff

    Global Chief Technology Officer

    • Tenure: 0yrs
    • Compensation: AU$1.10m
  • Clayton Hatch

    CFO & Company Secretary

    • Tenure: 7.3yrs
  • Brad Levin

    GM of North America & Global Head of Marketing

    • Tenure: 0yrs
    • Compensation: AU$592.08k
  • Sean Lambright

    Global Head of Sales - Visage Imaging Inc

    • Tenure: 4.3yrs
    • Compensation: AU$696.30k

Board Members

  • Anthony Hall

    Co-Founder

    • Tenure: 36.8yrs
    • Compensation: AU$380.27k
  • Sam Hupert

    Co-Founder

    • Tenure: 9yrs
    • Compensation: AU$507.92k
  • Leigh Farrell

    Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: AU$90.00k
  • Peter Kempen (70yo)

    Chairman of the Board

    • Tenure: 9.2yrs
    • Compensation: AU$100.00k
  • Tony Glenning

    Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: AU$100.00k

Company Information

Pro Medicus Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pro Medicus Limited
  • Ticker: PME
  • Exchange: ASX
  • Founded: 1983
  • Industry: Health Care Technology
  • Sector: Healthcare
  • Market Cap: AU$3.258b
  • Shares outstanding: 103.98m
  • Website: https://www.promed.com.au

Number of Employees


Location

  • Pro Medicus Limited
  • 450 Swan Street
  • Richmond
  • Victoria
  • 3121
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PMEASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2000
PMCU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2000
PMECHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 2000
PMCDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2000

Biography

Pro Medicus Limited provides radiology information systems (RIS), picture archiving and communication systems (PACS), and advanced visualization solutions in Australia, Europe, and North America. It offers ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 10:32
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.