Pro Medicus Ltd PME

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A$130.88 +1.47 (1.14%)

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As of Jul 5, 2024 6:10am Delayed Price Closed

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Company Report

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Pro Medicus: New Contract Wins Broadly Tracking Our Expectations

Shane Ponraj May 28, 2024

Narrow-moat Pro Medicus announced five new United States contract wins for a combined minimum value of AUD 45 million. However, we had assumed further contract wins would contribute to earnings growth, and our earnings estimates are broadly unchanged. The new customers include two children’s hospitals, two private radiology groups, and a cancer center. The contracts will be cloud-based implemented, and we assume an eight-month earnings contribution in fiscal 2025, making up 3% of our total fiscal 2025 revenue forecast of AUD 188 million.

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Price vs Fair Value

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PME is trading at a 811% premium.

Price

A$130.88

Jul 5, 2024

Fair Value

A$23.30

Oct 22, 2023

Uncertainty

High

1-Star Price: A$93.45
5-Star Price: A$28.20
Economic Moat: Yvvgfwz
Capital Allocation: Bjbjqxrk

Bulls Say, Bears Say

Bulls

Pro Medicus is well positioned to benefit from industry tailwinds such as cloud adoption, larger datasets, and remote access.

Bears

Product differentiation is unlikely to be durable, with low barriers to entry and larger competitors already utilizing server-side rendering and cloud-native architecture.

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News

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Visage Leads with CloudPACS at SIIM 2024

PR Newswire Jun 25, 2024 3:20pm

Trading Information

Previous Close Price: A$129.41
Day Range: A$128.40–130.88
52-Week Range: A$61.95–144.34
Bid/Ask: A$130.50 / A$131.00
Market Cap: A$13.67 Bil
Volume/Avg: 214,104 / 382,433

Key Statistics

Price/Earnings (Normalized): 196.13
Price/Sales: 96.34
Dividend Yield (Trailing): 0.27%
Dividend Yield (Forward): 0.28%
Total Yield: 0.27%

Company Profile

Pro Medicus is a healthcare IT company specializing in radiology imaging software. Its main product, Visage 7, is a clinical desktop application that radiologists use to view, enhance, and manipulate images from any device and make a diagnosis. Its main customers are U.S. private academic hospitals. In fiscal 2022, Pro Medicus earned 79% of revenue in North America, 16% from Australia, and the remaining 6% in Europe.

Sector: Healthcare
Industry: Health Information Services
Stock Style Box: Large Growth
Total Number of Employees: 75
Website: https://www.promed.com.au

Competitors

Valuation

Metric	PME	FPH	RMD
Price/Earnings (Normalized)	196.13	83.40	25.86
Price/Book Value	85.87	9.92	5.90
Price/Sales	96.34	9.98	6.04
Price/Cash Flow	191.68	40.82	21.72

Price/Earnings

PME

FPH

RMD

Financial Strength

Metric	PME	FPH	RMD
Quick Ratio	7.34	0.88	1.32
Current Ratio	7.49	1.83	3.04
Interest Coverage	—	13.77	22.63

Quick Ratio

PME

FPH

RMD

Profitability

Metric	PME	FPH	RMD
Return on Assets (Normalized)	35.76%	11.54%	15.75%
Return on Equity (Normalized)	50.95%	15.07%	24.94%
Return on Invested Capital (Normalized)	48.23%	13.94%	19.33%

Return on Assets

PME

FPH

RMD

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