ASX:PME

Stock Analysis Report

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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 Analysis

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

Stable Share Price: PME's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.4%

PME

-1.6%

AU Healthcare Services

1.4%

AU Market


1 Year Return

-10.0%

PME

-7.2%

AU Healthcare Services

-4.5%

AU Market

Return vs Industry: PME exceeded the Australian Healthcare Services industry which returned -11.2% over the past year.

Return vs Market: PME underperformed the Australian Market which returned -4.2% over the past year.


Shareholder returns

PMEIndustryMarket
7 Day-1.4%-1.6%1.4%
30 Day-7.5%-4.5%1.7%
90 Day-10.6%-5.6%14.7%
1 Year-9.6%-10.0%-6.9%-7.2%-0.8%-4.5%
3 Year368.2%359.1%124.3%116.1%19.6%4.1%
5 Year1,110.0%1,068.5%178.2%155.8%45.4%14.4%

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?

109.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PME (A$23.37) is trading above our estimate of fair value (A$14.59)

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 (109.7x) compared to the XX Healthcare Services industry average (47.6x).

PE vs Market: PME is poor value based on its PE Ratio (109.7x) compared to the Australian market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: PME is poor value based on its PEG Ratio (4.4x)


Price to Book Ratio

PB vs Industry: PME is overvalued based on its PB Ratio (46.3x) compared to the AU Healthcare Services industry average (5.1x).


Next Steps

Future Growth

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

24.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PME's forecast earnings growth (24.7% per year) is above the savings rate (2.3%).

Earnings vs Market: PME's earnings (24.7% per year) are forecast to grow faster than the Australian market (14.9% per year).

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

Revenue vs Market: PME's revenue (17.3% per year) is forecast to grow faster than the Australian market (4.3% per year).

High Growth Revenue: PME's revenue (17.3% per year) is forecast to grow slower 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 (46.8%).


Next Steps

  • Explore growth companies in the Healthcare industry.

Past Performance

How has Pro Medicus performed over the past 5 years?

36.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PME has high quality earnings.

Growing Profit Margin: PME's current net profit margins (40.9%) are higher than last year (36.6%).


Past Earnings Growth Analysis

Earnings Trend: PME's earnings have grown significantly by 36.8% per year over the past 5 years.

Accelerating Growth: PME's earnings growth over the past year (39.4%) exceeds its 5-year average (36.8% per year).

Earnings vs Industry: PME earnings growth over the past year (39.4%) exceeded the Healthcare Services industry -1.5%.


Return on Equity

High ROE: PME's Return on Equity (42.2%) is considered outstanding.


Next Steps

Financial Health

How is Pro Medicus's financial position?


Financial Position Analysis

Short Term Liabilities: PME's short term assets (A$56.4M) exceed its short term liabilities (A$12.8M).

Long Term Liabilities: PME's short term assets (A$56.4M) exceed its long term liabilities (A$22.2M).


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


Next Steps

Dividend

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

0.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PME's dividend (0.51%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: PME's dividend (0.51%) is low compared to the top 25% of dividend payers in the Australian market (6.46%).


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?

9.6yrs

Average management tenure


CEO

Sam Hupert

9.83yrs

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 Member of Adviso ...


CEO Compensation Analysis

Compensation vs Market: Sam's total compensation ($USD364.18K) is below average for companies of similar size in the Australian market ($USD1.38M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Sam Hupert
Co-Founder9.83yrsAU$507.92k27.07%
A$ 657.6m
Anthony Hall
Co-Founder37.58yrsAU$380.27k27.04%
A$ 656.9m
Malte Westerhoff
Global Chief Technology Officerno dataAU$1.10m0.055%
A$ 1.3m
Brad Levin
GM of North America & Global Head of Marketingno dataAU$592.08k0.044%
A$ 1.1m
Danny Tauber
General Manager of Australia9.58yrsAU$560.41k0.37%
A$ 8.9m
Sean Lambright
Global Head of Sales - Visage Imaging Inc5.08yrsAU$696.30k0.17%
A$ 4.2m
Clayton Hatch
CFO & Company Secretary8.08yrsno datano data

9.6yrs

Average Tenure

Experienced Management: PME's management team is seasoned and experienced (9.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sam Hupert
Co-Founder9.83yrsAU$507.92k27.07%
A$ 657.6m
Anthony Hall
Co-Founder37.58yrsAU$380.27k27.04%
A$ 656.9m
Leigh Farrell
Non-Executive Director2.92yrsAU$90.00k0.0041%
A$ 99.1k
Peter Kempen
Chairman of the Board10yrsAU$100.00k0.65%
A$ 15.8m
Deena Shiff
Non-Executive Directorno datano datano data
Anthony Glenning
Non-Executive Director4.25yrsAU$100.00k0.0092%
A$ 222.5k

10.0yrs

Average Tenure

Experienced Board: PME's board of directors are seasoned and experienced ( 10 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$2.429b
  • Shares outstanding: 103.95m
  • 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 Analysis2020/08/14 11:14
End of Day Share Price2020/08/13 00:00
Earnings2019/12/31
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.