A Look At Pro Medicus (ASX:PME) Valuation After Half Year Results And Interim Dividend Announcement

Simply Wall St.

Yesterday

Pro Medicus (ASX:PME) is back in focus after releasing half year 2025 results alongside an interim dividend, giving investors fresh numbers on sales, earnings and cash returns via a A$0.32 per share ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

{"basename":"","ssrTDKData":{"titleTemplate":"%s - Tiger Brokers","title":"Tiger Brokers | Global Stocks, Options & Futures Trading App","description":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","keywords":"tiger brokers,tiger trade,tiger brokers singapore,broker online,stock trading in singapore,share trading singapore,brokerage firm singapore,trading app,stock broker singapore,stock trading platforms,trading account","social":{"ogDescription":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.be62fbe1.png","ogUrl":"https://www.itiger.com/news/2612241324"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"isCrawlerRequest":true,"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"2612241324\",edition:\"fundamental\",auth_exemption:1,,,undefined,":{"share":"https://ttm.financial/m/news/2612241324?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/9551730-choice1-main-header/1585186828574","is_english":true,"pubTime":"2026-02-18 11:29","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2612241324","market":"hk","top_or_hot":-1,"title":"A Look At Pro Medicus (ASX:PME) Valuation After Half Year Results And Interim Dividend Announcement","media":"Simply Wall St.","content":"<div>\n<p>Pro Medicus (ASX:PME) is back in focus after releasing half year 2025 results alongside an interim dividend, giving investors fresh numbers on sales, earnings and cash returns via a A$0.32 per share ...</p>\n\n<a href=\"https://simplywall.st/stocks/au/healthcare/asx-pme/pro-medicus-shares/news/a-look-at-pro-medicus-asxpme-valuation-after-half-year-resul\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>A Look At Pro Medicus (ASX:PME) Valuation After Half Year Results And Interim Dividend Announcement</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nA Look At Pro Medicus (ASX:PME) Valuation After Half Year Results And Interim Dividend Announcement\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-18 11:29 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/au/healthcare/asx-pme/pro-medicus-shares/news/a-look-at-pro-medicus-asxpme-valuation-after-half-year-resul><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Pro Medicus (ASX:PME) is back in focus after releasing half year 2025 results alongside an interim dividend, giving investors fresh numbers on sales, earnings and cash returns via a A$0.32 per share ...</p>\n\n<a href=\"https://simplywall.st/stocks/au/healthcare/asx-pme/pro-medicus-shares/news/a-look-at-pro-medicus-asxpme-valuation-after-half-year-resul\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4212","symbol_name":"包装食品与肉类","start_time":0,"source_url":"https://simplywall.st/stocks/au/healthcare/asx-pme/pro-medicus-shares/news/a-look-at-pro-medicus-asxpme-valuation-after-half-year-resul","article_id":"2612241324","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/9551730-choice1-main-header/1585186828574"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/au/healthcare/asx-pme/pro-medicus-shares/news/a-look-at-pro-medicus-asxpme-valuation-after-half-year-resul","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2612241324","pubTimestamp":1771385346,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Pro Medicus (ASX:PME) is back in focus after releasing half year 2025 results alongside an interim dividend, giving investors fresh numbers on sales, earnings and cash returns via a A$0.32 per share payout.\nSee our latest analysis for Pro Medicus.\nThe market reaction has been mixed, with a 7.69% 1 day share price return following the half year earnings and dividend update, set against a 30 day share price return of 37.92% decline and a 1 year total shareholder return of 54.91% decline...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4212":"包装食品与肉类","ROE":"ASTORIA US QUALITY KINGS ETF","PME.AU":"PRO MEDICUS LTD","BK7094":"医疗保健技术","PME":"平潭海洋实业有限公司"},"translate_title":"半年业绩和中期股息公告后Pro Medicus(ASX：PME)估值一览","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"PME.AU":1.5,"ROE":1,"PME":1.5},"content_text":"Pro Medicus (ASX:PME) is back in focus after releasing half year 2025 results alongside an interim dividend, giving investors fresh numbers on sales, earnings and cash returns via a A$0.32 per share payout. See our latest analysis for Pro Medicus. The market reaction has been mixed, with a 7.69% 1 day share price return following the half year earnings and dividend update, set against a 30 day share price return of 37.92% decline and a 1 year total shareholder return of 54.91% decline. However, the 5 year total shareholder return of 183.10% highlights how long term holders have still seen substantial gains, suggesting recent momentum has faded after a strong multi year run. If the recent move in Pro Medicus has you reassessing healthcare tech, it could be a good moment to scan the broader field of 10 healthcare AI stocks as potential next ideas. With revenue, earnings and dividends all in focus, yet the share price still down sharply over 1 year and 30 days, the real question is whether Pro Medicus is now undervalued or if the market is already pricing in future growth. AdvertisementMost Popular Narrative: 5.8% Undervalued Pro Medicus last closed at A$125.96, while the most followed narrative fair value sits at A$133.68, setting up a modest valuation gap for investors to weigh.  Pro Medicus (ASX: PME) is an Australian company that develops medical imaging software under its Visage product range. Leading medical institutions including NYU Langone, UCSF, and Mass General Brigham have publicly or semi-publicly praised the platform, often via PME-issued press releases or interviews. In 2020, the Mayo Clinic selected Visage, citing its unique performance and capabilities. The company enjoys very high margins, underpinned by long-term contracts with hospitals and clinics, often using a pay-per-scan model. It has been expanding aggressively, particularly in the United States, where it has gained significant traction among tier-one healthcare providers. Pro Medicus also boasts an exceptional balance sheet, with very high cash reserves and negligible debt. Its directors retain a substantial ownership stake, signalling strong confidence in the business. The company’s growth has been consistently impressive, with Return on Assets (ROA) at 40% and Return on Equity (ROE) at 42%. The current ratio stands at 5.97, reflecting strong liquidity. However, the valuation is extremely stretched. The P/E ratio sits at 324x, meaning it would take 324 years of current earnings per share to cover the share price. The dividend yield is just 0.3%, the price-to-book ratio is an eye-watering 154x, and the acquirer’s multiple is also of concern. While Pro Medicus is a high-quality and well-managed business, it does not operate in a monopoly. Major global players like GE Healthcare, Philips, and Siemens offer competing products and are actively developing platforms to emulate Visage’s capabilities. These companies also benefit from broader product portfolios, which help fund their R&D at scale. PME also faces some concentration risk, with revenue heavily reliant on a relatively small number of customers. Its lack of diversification beyond medical imaging means it is particularly exposed to regulatory and technological shifts, as well as changes in healthcare and insurance policy, especially with recent developments in the U.S. market. In summary, Pro Medicus is an Australian success story, decisively competing with, and in many cases outpacing, some of the biggest names in global healthcare tech. For this Australian investor, this is a point of pride. However, the risks remain real: strong competitors, limited product scope, and a valuation that appears difficult to justify. While a dramatic price correction may not be imminent, caution is warranted, particularly for the average investor considering adding to a position at current levels. Buffett and Munger are famous for saying to focus on buying great companies at fair prices. PME is definitely a great company, but this current valuation is not fair.  Read the complete narrative. Want to see what sits behind that A$133.68 figure and 5.8% gap to the market price? The narrative leans heavily on rich margins, strong liquidity and a punchy profit multiple that assumes those strengths hold up over time. Result: Fair Value of A$133.68 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, future regulation in key markets or any shift in major hospital contracts could quickly challenge the idea that this 5.8% gap is attractive. Find out about the key risks to this Pro Medicus narrative. Another Lens On Value: Earnings Multiple Sends A Different Message While the user narrative lands on a fair value of A$133.68 and calls Pro Medicus 5.8% undervalued, our earnings based view is harsher. At a P/E of 56.1x versus a fair ratio of 34.2x, with peers at 41.5x and the global Healthcare Services group at 28.9x, the share price screens expensive and raises the question of how much growth you really want to pre pay for. See what the numbers say about this price — find out in our valuation breakdown. ASX:PME P/E Ratio as at Feb 2026Next Steps With mixed signals on valuation and sentiment running both cautious and optimistic, it makes sense to act soon. Check the facts for yourself using our breakdown of 2 key rewards and 1 important warning sign. Looking for more investment ideas? If this update has sharpened your thinking on Pro Medicus, do not stop here. Broaden your watchlist with other opportunities that fit your style.  Target value with quality in mind by checking out our list of 10 high quality undervalued stocks that pair fundamentals with pricing that some investors may find appealing. Prioritise resilience by reviewing 5 resilient stocks with low risk scores that score well on stability so you are not relying on just one story to manage volatility. Get ahead of the crowd by scanning a screener containing 14 high quality undiscovered gems that many investors might be overlooking, before attention and liquidity potentially shift their way.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}