Pro Medicus Limited
Pro Medicus Limited Fundamental Analysis
Pro Medicus Limited (PME.AX) shows strong financial fundamentals with a PE ratio of 57.87, profit margin of 97.56%, and ROE of 72.67%. The company generates $0.2B in annual revenue with strong year-over-year growth of 31.89%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 86.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze PME.AX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPME.AX demonstrates superior asset utilization.
Valuation Score
ModeratePME.AX shows balanced valuation metrics.
Growth Score
ExcellentPME.AX delivers strong and consistent growth momentum.
Financial Health Score
ExcellentPME.AX maintains a strong and stable balance sheet.
Profitability Score
ExcellentPME.AX achieves industry-leading margins.
Key Financial Metrics
Is PME.AX Expensive or Cheap?
P/E Ratio
PME.AX trades at 57.87 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PME.AX's PEG of 0.56 indicates potential undervaluation.
Price to Book
The market values Pro Medicus Limited at 34.92 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 72.65 times EBITDA. This signals the market has high growth expectations.
How Well Does PME.AX Make Money?
Net Profit Margin
For every $100 in sales, Pro Medicus Limited keeps $97.56 as profit after all expenses.
Operating Margin
Core operations generate 74.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $72.67 in profit for every $100 of shareholder equity.
ROA
Pro Medicus Limited generates $43.96 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Pro Medicus Limited generates strong operating cash flow of $135.99M, reflecting robust business health.
Free Cash Flow
Pro Medicus Limited generates strong free cash flow of $135.52M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.30 in free cash annually.
FCF Yield
PME.AX converts 1.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
57.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
34.92
vs 25 benchmark
P/S Ratio
Price to sales ratio
56.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.01
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.22
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.73
vs 25 benchmark
ROA
Return on assets percentage
0.44
vs 25 benchmark
ROCE
Return on capital employed
0.37
vs 25 benchmark
How PME.AX Stacks Against Its Sector Peers
| Metric | PME.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 57.87 | 29.73 | Worse (Expensive) |
| ROE | 72.67% | 777.00% | Weak |
| Net Margin | 97.56% | -23829.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.26 | Strong (Low Leverage) |
| Current Ratio | 6.22 | 4.62 | Strong Liquidity |
| ROA | 43.96% | -17661.00% (disorted) | Strong |
PME.AX outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Pro Medicus Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
272.61%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
396.52%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
250.45%
Industry Style: Defensive, Growth, Innovation
High Growth