Pro Medicus Limited (PME.AX) stock analysis

In our weekly check, Pro Medicus Limited is graded B (A to F). Of 24 checks on debt, profit, cash flow and trend: 17 pass, warnings: 1, red flags: 6.

About Pro Medicus Limited

Pro Medicus Limited is a Healthcare company (Medical - Healthcare Information Services) based in Australia, listed on ASX as PME.AX.

What our checks show for PME.AX

Red flags

• The gross margin fell by 18.8 points, to 80.7%: costs are rising faster than prices.
• Operating cash flow is only 0.48x net profit: part of the reported profit does not arrive as cash.
• Analysts expect the net margin to shrink by 44.7 points from today's 101%.
• The price swings a lot: 57.6% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 89% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 3.6 years.

Warning signs

• Thinly traded (about 221 thousand shares a day): buying and selling can move the price.

Strengths

• Debt is low: 0x equity.
• The net margin rose by 53.8 points over 5 years, to 101%.
• Analysts expect revenue to grow about 25% a year over the next years.
• Revenue grew 28% a year over the last 3 years.
• Earnings per share grew 63.6% a year over the last 3 years.
• Net profit grew 63.6% a year over the last 3 years.

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Questions

What grade does Pro Medicus Limited (PME.AX) have?

In our weekly check, Pro Medicus Limited is graded B (A to F). Of 24 checks on debt, profit, cash flow and trend: 17 pass, warnings: 1, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of PME.AX stock?

This week's biggest flags for Pro Medicus Limited: Gross margin falling, Profits not backed by cash, Margins expected to shrink. In total 7 of 24 checks show a warning or a red flag.

What does Pro Medicus Limited do?

Pro Medicus Limited is a Healthcare company (Medical - Healthcare Information Services) based in Australia, listed on ASX as PME.AX.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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