KEY POINTS
- Our own Stuart Roberts outlines a strong growth thesis for Pro Medicus (ASX:PME) in global medical imaging.
- Emphasis on high margins, long‑term US contracts and cloud-native technology.
- Comparison with CSL (ASX:CSL), Cochlear (ASX:COH) and interest in 4DMedical (ASX:4DX).
- View that digital health and medical software will outperform drugs and hospitals this decade.
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Pro Medicus (ASX:PME)
Stuart Roberts sets out a highly positive view on Pro Medicus (ASX:PME), arguing the company is still at an early stage of its growth story despite its premium valuation. Roberts highlights recent half-year revenue of $125 million and underlying EBIT of $90.7 million, implying an EBIT margin above 70%, which he regards as exceptional for a software business. Long‑dated, high‑value US contracts, such as the ten‑year, $170 million University of Colorado Health System deal, are cited as key attractions.
Roberts characterises the company’s cloud-native imaging platform as a premium, market‑leading product that “sells itself” to major hospital systems, notably in North America where he sees the best pricing and fastest digital health adoption. He contends US healthcare, while complex, is highly digital and hungry for integrated imaging and data solutions, supporting further global growth from bases in Melbourne, Berlin and San Diego.
He expects Pro Medicus to reach the institutional status once enjoyed by CSL (ASX:CSL) and Cochlear (ASX:COH), and notes the share price recovery from about $127 to $194 following the broader SaaS sell‑off. Roberts also points to 4DMedical (ASX:4DX) and wider digital health as major winners this decade, urging AI entrepreneurs to pivot into regulated healthcare to build durable competitive moats.
Watch the whole interview here!
