ASX:PME

Stock Analysis Report

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Market Cap

AU$5.9b

Last Updated

2021/06/24 17:03 UTC

Data Sources

Company Financials +

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. More Details

Rewards

Earnings are forecast to grow 31.71% per year

Earnings have grown 31.7% per year over the past 5 years

Risk Analysis

No risks detected for PME from our risk checks.


Snowflake Analysis

Exceptional growth potential with flawless balance sheet.


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

Stable Share Price: PME is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: PME's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

1.9%

PME

-1.5%

AU Healthcare Services

-0.8%

AU Market


1 Year Return

104.9%

PME

70.7%

AU Healthcare Services

29.1%

AU Market

Return vs Industry: PME exceeded the Australian Healthcare Services industry which returned 78.8% over the past year.

Return vs Market: PME exceeded the Australian Market which returned 26.8% over the past year.


Shareholder returns

PMEIndustryMarket
7 Day1.9%-1.5%-0.8%
30 Day26.7%13.6%2.7%
90 Day27.3%9.2%6.7%
1 Year105.7%104.9%71.3%70.7%33.3%29.1%
3 Year620.2%609.1%221.0%203.5%32.9%17.2%
5 Year1,143.3%1,107.4%138.3%113.8%69.8%38.1%

Long-Term 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?

240.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PME (A$56.16) is trading above our estimate of fair value (A$18.18)

Significantly Below Fair Value: 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 (237.8x) compared to the Global Healthcare Services industry average (54.6x).

PE vs Market: PME is poor value based on its PE Ratio (237.8x) compared to the Australian market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: PME is poor value based on its PEG Ratio (7.5x)


Price to Book Ratio

PB vs Industry: PME is overvalued based on its PB Ratio (82.6x) compared to the AU Healthcare Services industry average (6.2x).


Future Growth

How is Pro Medicus forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

33.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PME's forecast earnings growth (31.7% per year) is above the savings rate (1.9%).

Earnings vs Market: PME's earnings (31.7% per year) are forecast to grow faster than the Australian market (13.7% per year).

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

Revenue vs Market: PME's revenue (23.8% per year) is forecast to grow faster than the Australian market (5.4% per year).

High Growth Revenue: PME's revenue (23.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PME's Return on Equity is forecast to be very high in 3 years time (47%).


Past Performance

How has Pro Medicus performed over the past 5 years?

31.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PME has high quality earnings.

Growing Profit Margin: PME's current net profit margins (41.6%) are higher than last year (40.9%).


Past Earnings Growth Analysis

Earnings Trend: PME's earnings have grown significantly by 31.7% per year over the past 5 years.

Accelerating Growth: PME's earnings growth over the past year (11.2%) is below its 5-year average (31.7% per year).

Earnings vs Industry: PME earnings growth over the past year (11.2%) underperformed the Healthcare Services industry 30.2%.


Return on Equity

High ROE: PME's Return on Equity (34.7%) is considered high.


Financial Health

How is Pro Medicus's financial position?


Financial Position Analysis

Short Term Liabilities: PME's short term assets (A$72.2M) exceed its short term liabilities (A$13.1M).

Long Term Liabilities: PME's short term assets (A$72.2M) exceed its long term liabilities (A$23.6M).


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


Dividend

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

0.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PME's dividend (0.25%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (1.99%).

High Dividend: PME's dividend (0.25%) is low compared to the top 25% of dividend payers in the Australian market (5%).


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

9.8yrs

Average management tenure


CEO

Sam Hupert

10.67yrs

Tenure

AU$507,938

Compensation

Dr. Sam Aaron Hupert, M.B.B.S., MD 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 Member of Ad...


CEO Compensation Analysis

Compensation vs Market: Sam's total compensation ($USD380.19K) is below average for companies of similar size in the Australian market ($USD1.74M).

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


Leadership Team

Experienced Management: PME's management team is seasoned and experienced (9.8 years average tenure).


Board Members

Experienced Board: PME's board of directors are considered experienced (8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$5.927b
  • Shares outstanding: 104.21m
  • Website: https://www.promed.com.au

Number of Employees


Location

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

Listings


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 Analysis2021/06/24 17:03
End of Day Share Price2021/06/24 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.