Fact based stock research
Pro Medicus (ASX:PME)
AU000000PME8
How to read the free ranks
For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
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Pro Medicus stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 18 (worse than 82% compared with investment alternatives), Pro Medicus (Health Care Technology, Australia) shares have lower financial characteristics compared with similar stocks. Shares of Pro Medicus are low in value (priced high) with a consolidated Value Rank of 5 (worse than 95% of alternatives), and are riskily financed (Safety Rank of 11, which means above-average debt burdens) but show above-average growth (Growth Rank of 87). ...read more
RECOMMENDATION: A Combined Rank of 18, is a sell recommendation based on Pro Medicus's financial characteristics. As the company Pro Medicus shows low value with an Obermatt Value Rank of 5 (95% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 87% of comparable companies (Obermatt Growth Rank is 87). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 11 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Pro Medicus, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Pro Medicus
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 7 |
|
17 |
|
10 |
|
5 |
|
| GROWTH | ||||||||
| GROWTH | 100 |
|
87 |
|
97 |
|
87 |
|
| SAFETY | ||||||||
| SAFETY | 72 |
|
83 |
|
83 |
|
11 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
54 |
|
66 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
62 |
|
78 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 18 (worse than 82% compared with investment alternatives), Pro Medicus (Health Care Technology, Australia) shares have lower financial characteristics compared with similar stocks. Shares of Pro Medicus are low in value (priced high) with a consolidated Value Rank of 5 (worse than 95% of alternatives), and are riskily financed (Safety Rank of 11, which means above-average debt burdens) but show above-average growth (Growth Rank of 87). ...read more
RECOMMENDATION: A Combined Rank of 18, is a sell recommendation based on Pro Medicus's financial characteristics. As the company Pro Medicus shows low value with an Obermatt Value Rank of 5 (95% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 87% of comparable companies (Obermatt Growth Rank is 87). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 11 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Pro Medicus, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 7 |
|
17 |
|
10 |
|
5 |
|
| GROWTH | ||||||||
| GROWTH | 100 |
|
87 |
|
97 |
|
87 |
|
| SAFETY | ||||||||
| SAFETY | 72 |
|
83 |
|
83 |
|
11 |
|
| COMBINED | ||||||||
| COMBINED | 67 |
|
86 |
|
86 |
|
18 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 5 (worse than 95% compared with alternatives), Pro Medicus shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Pro Medicus. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 54% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 1 which means that the stock price compared with what market professionals expect for future profits is higher than 99% of comparable companies, indicating a low value concerning Pro Medicus's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 3 which means that the stock price compared with what market professionals expect for future profit levels is higher than 97% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 1 is also low. Compared with invested capital, the stock price is higher than for 99% of comparable investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 5, is a sell recommendation based on Pro Medicus's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Pro Medicus? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Pro Medicus only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 1 |
|
2 |
|
1 |
|
1 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 31 |
|
14 |
|
10 |
|
3 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 2 |
|
3 |
|
1 |
|
1 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 54 |
|
64 |
|
57 |
|
54 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 7 |
|
17 |
|
10 |
|
5 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 87 (better than 87% compared with alternatives) for 2024, Pro Medicus shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Pro Medicus. Sales Growth has a rank of 84 which means that currently, professionals expect the company to grow more than 84% of its competitors. Both Profit Growth, with a rank of 53, and Stock Returns, with a rank of 93, are also above average. But Capital Growth only has a rank of 45, which means that, currently, professionals expect the company to grow its invested capital less than 55% of its competitors. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 87, is a buy recommendation for growth and momentum investors. That may be a good sign if the company is already well positioned and doesn't require more investments at this time. They may focus on growing the top (revenues) and bottom (profits) lines, recently rewarded with above-average stock returns for shareholders. But it may also be a sign of danger as the company is falling back with capital investment activities concerning competition. This requires further analysis of corporate communications. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 86 |
|
46 |
|
81 |
|
84 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | n/a |
|
62 |
|
60 |
|
53 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
94 |
|
89 |
|
45 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 96 |
|
81 |
|
87 |
|
93 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 100 |
|
87 |
|
97 |
|
87 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 11 (better than 11% compared with alternatives), the company Pro Medicus has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Pro Medicus is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Pro Medicus and the other two below average. Leverage is at a rank of 91 meaning the company has a below-average debt-to-equity ratio. It has less debt than 91% of its competitors.Refinancing is at a rank of 11, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 89% of its competitors. Liquidity is at a rank of 15, meaning that the company generates less profit to service its debt than 85% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 11 (worse than 89% compared with alternatives), Pro Medicus has a financing structure that is significantly riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of Pro Medicus are on the safer side. Investors may have a short-term debt challenge and liquidity issues with Pro Medicus and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 66 |
|
73 |
|
89 |
|
91 |
|
| REFINANCING | ||||||||
| REFINANCING | 48 |
|
11 |
|
11 |
|
11 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 85 |
|
91 |
|
91 |
|
15 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 72 |
|
83 |
|
83 |
|
11 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
13 |
|
15 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
40 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
42 |
|
84 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
90 |
|
89 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
54 |
|
66 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Pro Medicus from November 14, 2024.
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