# Pro Medicus (PME.AU)

Canonical: https://gigainvestors.com/s/PME.AU

Analysis as of: 2026-10-16T07:35:37.562Z. Financial observations: FY1999–FY2026.

Listing currency: AUD. Reporting currency: AUD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 163.58 per share; close as of 2026-10-15.

Estimated value: low AUD 20.11 per share, central AUD 27.72 per share, high AUD 32.15 per share. Buy at or below the central value AUD 27.72 per share. Valuation as of 2026-10-16T07:35:37.562Z; scenarios are not confidence intervals.

Expected annual return: 4.2% at the stated quote. About 4.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; AU 10-year bond 5.2% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.18×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.47×

- FY2018: 0.41×

- FY2019: 0.51×

- FY2020: 0.53×

- FY2021: 0.62×

- FY2022: 0.67×

- FY2023: 0.67×

- FY2024: 0.69×

- FY2025: 0.74×

- FY2026: 0.75×

### moat: fail

- Recent gross margin fell 17.1pp below the typical margin (limit 4pp)

- ROIC, median of available years: >100%

- ROIC, second-lowest year: 68.1%

- Typical minus recent gross margin: 17.1 pp

- Typical gross margin (annual median): 97.8%

- Recent gross margin (lower of latest and 3-year median): 80.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.8%

- ROIC including acquisitions, ten-year median: >100%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 80.0%

- FY2018: 64.8%

- FY2019: 75.8%

- FY2020: >100%

- FY2021: >100%

- FY2022: >100%

- FY2023: >100%

- FY2024: >100%

- FY2025: >100%

- FY2026: 68.1%

### economics: pass

- Owner earnings / net income, 5-yr: 1.00×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD 569M

- Net income, five-year total: AUD 568M

- Return on incremental invested capital: 165.9%

- Working capital / revenue, annual change: 1.1 pp

- Working capital / revenue, change between three-year averages: 6.1 pp

- Working capital / revenue, final three-year average: 32.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.97×

- FY2023: 1.02×

- FY2024: 1.02×

- FY2025: 1.00×

- FY2026: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 75.8% vs 222.2%

- Per-share earnings: 0.09 to 1.10 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.1%

- Ordinary dilution, 5-year annual growth: -0.0%

- Market cap gain: AUD 21B

- Cumulative retained earnings: AUD 409M

- Diluted shares, 10-year annual growth: 0.1%

- Diluted shares, 5-year annual growth: -0.0%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 36.9%

- Per-share value change: AUD 1.01

- Per-share value, starting three-year median: AUD 0.09

- Per-share value, ending three-year median: AUD 1.10

- Buybacks concentrated in cheaper years (correlation): -0.07

- Average buyback yield: 0.0%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: AUD 11M

- Cumulative net income, 10 years: AUD 661M

- ROIC, first three-year median: 75.8%

- ROIC, last three-year median: >100%

Chart: Earnings per share; fiscal year observations.

- FY2017: AUD 0.09

- FY2018: AUD 0.10

- FY2019: AUD 0.18

- FY2020: AUD 0.22

- FY2021: AUD 0.29

- FY2022: AUD 0.42

- FY2023: AUD 0.58

- FY2024: AUD 0.79

- FY2025: AUD 1.10

- FY2026: AUD 2.54

### accounting: pass

- Sloan accruals exceed 10%

- Sloan accruals: 22.6%

- Receivables to sales index (DSRI): 1.27×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.48×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.05×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -11.7%

- FY2018: -6.4%

- FY2019: -6.6%

- FY2020: -8.7%

- FY2021: -6.4%

- FY2022: -10.9%

- FY2023: -0.9%

- FY2024: -1.5%

- FY2025: 1.1%

- FY2026: 22.6%

## Holders

## Price story

Down 49% since Jul 2025 · sales +22.9%

Story as of 2026-10-16T10:00:05.686Z; price observation 2026-10-15.

Price needs cash profits to grow 30.8% a year for ten years

### Sales · FY2025–2026

sales +22.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: AUD 32M 

- FY2018: AUD 36M 

- FY2019: AUD 50M 

- FY2020: AUD 57M 

- FY2021: AUD 68M 

- FY2022: AUD 93M 

- FY2023: AUD 125M 

- FY2024: AUD 161M 

- FY2025: AUD 213M 

- FY2026: AUD 262M 

### Gross margin · FY2026

gross margin 80.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 98.4% 

- FY2018: 99.4% 

- FY2019: 97.2% 

- FY2020: 99.3% 

- FY2021: 68.7% 

- FY2022: 99.4% 

- FY2023: 74.0% 

- FY2024: 75.7% 

- FY2025: 99.9% 

- FY2026: 80.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in health information services; annual sales are AUD 261.7 million.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:37.562Z); FY2026: revenue 261688000; grossProfit 211147000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PME.AU: Pro Medicus Limited, a healthcare informatics company, provides medical imaging software and services to hospitals, imaging centers, and health care groups in Australia, Europe, and North America. The company offers Visage RIS, an enterprise-class radiology information system for patient registration, billing, scheduling, typing, HL7 integration, financial reporting, picture archive and communication system (PACS) integration, digital dictation, and voice recognition integration; and Visage RIS/PACS, a solution for imaging needs of organizations. It also provides Visage 7 Enterprise Imaging Platform, a healthcare imaging software for radiologists, physicians, and clinicians for access and visualization capability comprising rapidly viewing 2-D, 3-D, and 4-D medical images, as well as PACS, digital imaging software, training, installation, and professional services and support products; and Visage Ease, a native mobile application for access to medical imaging results stored on a Visage 7 server from iOS devices, including iPad, iPhone, and iTouch. In addition, the company offers Visage Ease Pro for interpreting diagnostic imaging studies; and Promedicus.net, an e-health offering. Pro Medicus Limited was incorporated in 1983 and is headquartered in Richmond, Australia.

### Why customers stay

Margins ranged from 75.7% to 99.9% during 2024–26; it earns over 100% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:37.562Z); FY2024: grossProfit / revenue = 75.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:37.562Z); FY2025: grossProfit / revenue = 99.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:37.562Z); FY2026: grossProfit / revenue = 80.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:37.562Z); 10-year return on capital observations [[2017,0.8001440901836654],[2018,0.6477153778204308],[2019,0.7579765406563981],[2020,1.213449523622566],[2021,1.3562483944117667],[2022,3.2662369212816302],[2023,3.0870524705526883],[2024,2.283932713540975],[2025,2.2224741191240938],[2026,0.6806305419678143]]; median 1.2848489590171663. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 0.2% of cash earnings on expansion; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:37.562Z); FY2017: growth capex 0; upkeep 80000; owner earnings 13524000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:37.562Z); FY2018: growth capex 0; upkeep 219000; owner earnings 14684000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:37.562Z); FY2019: growth capex 0; upkeep 342000; owner earnings 24867000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:37.562Z); FY2020: growth capex 124645.42745304294; upkeep 7746354.572546957; owner earnings 22557445.42745304. Growth capex / owner earnings = 0.005525688972801236.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:37.562Z); FY2021: growth capex 272849.7113408055; upkeep 7420150.2886591945; owner earnings 30105249.711340807. Growth capex / owner earnings = 0.00906319376045639.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:37.562Z); FY2022: growth capex 727411.2760942308; upkeep 8295588.723905769; owner earnings 43006611.27609423. Growth capex / owner earnings = 0.01691394077585861.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:37.562Z); FY2023: growth capex 0; upkeep 6446000; owner earnings 61757800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:37.562Z); FY2024: growth capex 0; upkeep 6693000; owner earnings 84197200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:37.562Z); FY2025: growth capex 141000; upkeep 7236000; owner earnings 114766000. Growth capex / owner earnings = 0.0012285868637052786.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:37.562Z); FY2026: growth capex 625000; upkeep 8061000; owner earnings 264897800. Growth capex / owner earnings = 0.0023594004933223302.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:37.562Z); Dividend observations: [[2017,3075000],[2018,5150000],[2019,9843000],[2020,10916000],[2021,13548000],[2022,18788000],[2023,26108000],[2024,36554000],[2025,49114000],[2026,64783000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:37.562Z); FY2026: cash repurchases 10140000 AUD.

### Are managers owners

Insiders own 49% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PME.AU SharesStats.PercentInsiders = 48.957 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 30.8% yearly over ten years; actual growth was 38.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:37.562Z); Ten-year compound average after fade. Initial solved rate 0.4403347911482659. Price 163.58; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.09587158167924256 → FY2026 2.5315374463274245. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 4.97 per share

- 2016-11: AUD 5.39 per share

- 2016-12: AUD 4.80 per share

- 2017-01: AUD 4.95 per share

- 2017-02: AUD 4.57 per share

- 2017-03: AUD 5.80 per share

- 2017-04: AUD 5.45 per share

- 2017-05: AUD 5.20 per share

- 2017-06: AUD 5.32 per share

- 2017-07: AUD 5.20 per share

- 2017-08: AUD 5.04 per share

- 2017-09: AUD 5.90 per share

- 2017-10: AUD 6.70 per share

- 2017-11: AUD 7.55 per share

- 2017-12: AUD 8.72 per share

- 2018-01: AUD 8.06 per share

- 2018-02: AUD 8.29 per share

- 2018-03: AUD 8.17 per share

- 2018-04: AUD 8.00 per share

- 2018-05: AUD 7.40 per share

- 2018-06: AUD 8.02 per share

- 2018-07: AUD 8.40 per share

- 2018-08: AUD 10.19 per share

- 2018-09: AUD 12.46 per share

- 2018-10: AUD 9.12 per share

- 2018-11: AUD 10.09 per share

- 2018-12: AUD 10.88 per share

- 2019-01: AUD 12.11 per share

- 2019-02: AUD 13.75 per share

- 2019-03: AUD 14.80 per share

- 2019-04: AUD 20.44 per share

- 2019-05: AUD 22.72 per share

- 2019-06: AUD 25.29 per share

- 2019-07: AUD 30.75 per share

- 2019-08: AUD 36.81 per share

- 2019-09: AUD 27.82 per share

- 2019-10: AUD 26.66 per share

- 2019-11: AUD 24.71 per share

- 2019-12: AUD 22.35 per share

- 2020-01: AUD 24.00 per share

- 2020-02: AUD 20.16 per share

- 2020-03: AUD 19.43 per share

- 2020-04: AUD 26.16 per share

- 2020-05: AUD 28.83 per share

- 2020-06: AUD 26.46 per share

- 2020-07: AUD 23.92 per share

- 2020-08: AUD 25.95 per share

- 2020-09: AUD 27.07 per share

- 2020-10: AUD 32.39 per share

- 2020-11: AUD 29.54 per share

- 2020-12: AUD 34.16 per share

- 2021-01: AUD 42.84 per share

- 2021-02: AUD 44.35 per share

- 2021-03: AUD 41.33 per share

- 2021-04: AUD 47.21 per share

- 2021-05: AUD 46.11 per share

- 2021-06: AUD 58.72 per share

- 2021-07: AUD 57.98 per share

- 2021-08: AUD 63.07 per share

- 2021-09: AUD 54.61 per share

- 2021-10: AUD 53.28 per share

- 2021-11: AUD 62.48 per share

- 2021-12: AUD 62.44 per share

- 2022-01: AUD 45.10 per share

- 2022-02: AUD 46.73 per share

- 2022-03: AUD 48.99 per share

- 2022-04: AUD 47.48 per share

- 2022-05: AUD 42.13 per share

- 2022-06: AUD 42.25 per share

- 2022-07: AUD 49.54 per share

- 2022-08: AUD 54.48 per share

- 2022-09: AUD 50.19 per share

- 2022-10: AUD 55.82 per share

- 2022-11: AUD 59.44 per share

- 2022-12: AUD 55.26 per share

- 2023-01: AUD 66.85 per share

- 2023-02: AUD 61.01 per share

- 2023-03: AUD 63.87 per share

- 2023-04: AUD 61.44 per share

- 2023-05: AUD 59.35 per share

- 2023-06: AUD 65.64 per share

- 2023-07: AUD 68.79 per share

- 2023-08: AUD 73.32 per share

- 2023-09: AUD 83.39 per share

- 2023-10: AUD 74.54 per share

- 2023-11: AUD 88.41 per share

- 2023-12: AUD 95.83 per share

- 2024-01: AUD 101.56 per share

- 2024-02: AUD 103.82 per share

- 2024-03: AUD 103.75 per share

- 2024-04: AUD 111.41 per share

- 2024-05: AUD 120.12 per share

- 2024-06: AUD 143.26 per share

- 2024-07: AUD 143.76 per share

- 2024-08: AUD 150.70 per share

- 2024-09: AUD 178.25 per share

- 2024-10: AUD 194.83 per share

- 2024-11: AUD 251.89 per share

- 2024-12: AUD 250.12 per share

- 2025-01: AUD 278.40 per share

- 2025-02: AUD 253.25 per share

- 2025-03: AUD 199.79 per share

- 2025-04: AUD 229.41 per share

- 2025-05: AUD 282.01 per share

- 2025-06: AUD 285.08 per share

- 2025-07: AUD 321.89 per share

- 2025-08: AUD 298.81 per share

- 2025-09: AUD 308.29 per share

- 2025-10: AUD 263.61 per share

- 2025-11: AUD 266.54 per share

- 2025-12: AUD 220.87 per share

- 2026-01: AUD 184.12 per share

- 2026-02: AUD 130.00 per share

- 2026-03: AUD 116.90 per share

- 2026-04: AUD 134.40 per share

- 2026-05: AUD 132.26 per share

- 2026-06: AUD 203.43 per share

- 2026-07: AUD 162.21 per share

- 2026-08: AUD 179.39 per share

- 2026-09: AUD 163.92 per share

- 2026-10: AUD 165.69 per share

## Annual estimated value (AUD per share)

- FY2017: low AUD 1.41 per share, central AUD 1.58 per share, high AUD 1.80 per share

- FY2018: low AUD 1.60 per share, central AUD 1.79 per share, high AUD 2.04 per share

- FY2019: low AUD 2.44 per share, central AUD 2.74 per share, high AUD 3.13 per share

- FY2020: low AUD 2.83 per share, central AUD 3.17 per share, high AUD 3.61 per share

- FY2021: low AUD 3.60 per share, central AUD 4.02 per share, high AUD 4.58 per share

- FY2022: low AUD 6.23 per share, central AUD 8.53 per share, high AUD 9.88 per share

- FY2023: low AUD 8.60 per share, central AUD 11.79 per share, high AUD 13.65 per share

- FY2024: low AUD 11.10 per share, central AUD 15.23 per share, high AUD 17.64 per share

- FY2025: low AUD 15.63 per share, central AUD 21.49 per share, high AUD 24.90 per share

- FY2026: low AUD 20.08 per share, central AUD 27.68 per share, high AUD 32.10 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:41:18.734Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.