Here's Why We Think Pro Medicus (ASX:PME) Is Well Worth Watching
It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story even if these companies are loss-making. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad.
If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Pro Medicus (ASX:PME). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it.
We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
The market is a voting machine in the short term, but a weighing machine in the long term, so you'd expect share price to follow earnings per share (EPS) outcomes eventually. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. To the delight of shareholders, Pro Medicus has achieved impressive annual EPS growth of 37%, compound, over the last three years. While that sort of growth rate isn't sustainable for long, it certainly catches the eye of prospective investors.
Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. The good news is that Pro Medicus is growing revenues, and EBIT margins improved by 5.1 percentage points to 72%, over the last year. That's great to see, on both counts.
You can take a look at the company's revenue and earnings growth trend, in the chart below. Click on the chart to see the exact numbers.
View our latest analysis for Pro Medicus
You don't drive with your eyes on the rear-view mirror, so you might be more interested in this free report showing analyst forecasts for Pro Medicus' future profits.
Seeing insiders owning a large portion of the shares on issue is often a good sign. Their incentives will be aligned with the investors and there's less of a probability in a sudden sell-off that would impact the share price. So those who are interested in Pro Medicus will be delighted to know that insiders have shown their belief, holding a large proportion of the company's shares. Owning 49% of the company, insiders have plenty riding on the performance of the the share price. Shareholders and speculators should be reassured by this kind of alignment, as it suggests the business will be run for the benefit of shareholders. And their holding is extremely valuable at the current share price, totalling AU$14b. This is an incredible endorsement from them.
It's good to see that insiders are invested in the company, but are remuneration levels reasonable? Our quick analysis into CEO remuneration would seem to indicate they are. The median total compensation for CEOs of companies similar in size to Pro Medicus, with market caps over AU$12b, is around AU$6.4m.
The Pro Medicus CEO received total compensation of just AU$965k in the year to June 2024. First impressions seem to indicate a compensation policy that is favourable to shareholders. While the level of CEO compensation shouldn't be the biggest factor in how the company is viewed, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. It can also be a sign of good governance, more generally.
Pro Medicus' earnings per share growth have been climbing higher at an appreciable rate. An added bonus for those interested is that management hold a heap of stock and the CEO pay is quite reasonable, illustrating good cash management. The sharp increase in earnings could signal good business momentum. Big growth can make big winners, so the writing on the wall tells us that Pro Medicus is worth considering carefully. Of course, profit growth is one thing but it's even better if Pro Medicus is receiving high returns on equity, since that should imply it can keep growing without much need for capital. Click on this link to see how it is faring against the average in its industry.
While opting for stocks without growing earnings and absent insider buying can yield results, for investors valuing these key metrics, here is a carefully selected list of companies in AU with promising growth potential and insider confidence.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data 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 financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 hours ago
- Yahoo
Nyanzaga Gold Project Technical Report
Perth, June 10, 2025 (GLOBE NEWSWIRE) -- PERSEUS RELEASES TECHNICAL REPORT FOR THE NYANZAGA GOLD PROJECT Perth, Western Australia/June 10, 2025/ Perseus Mining Limited (ASX/TSX: PRU) is pleased to announce the release of the Technical Report for its Nyanzaga Gold Project (NGP) in Tanzania. The Technical Report, with an effective date of April 28, 2025, was prepared in compliance with Canadian Securities Administrators' National Instrument 43-101 and is available on and The Report summarises the results of the updated Feasibility Study to demonstrate the technical and economic viability of the NGP and supports a decision to advance to development. Please refer to News Release dated April 28, 2025 'Perseus Mining proceeds with development of the Nyanzaga Gold Project' for a summary of the material information contained in the Nyanzaga Technical Report. This announcement was approved for release by the Managing Director & CEO, Jeff Quartermaine. ASX/TSX CODE: PRUCAPITAL STRUCTURE:Ordinary shares: 1,362,221,512Performance rights: 10,056,681REGISTERED OFFICE:Level 2437 Roberts RoadSubiaco WA 6008Telephone: +61 8 6144 DIRECTORS:Rick MenellNon-Executive ChairmanJeff QuartermaineManaging Director & CEO Amber BanfieldNon-Executive DirectorElissa CorneliusNon-Executive DirectorDan LougherNon-Executive DirectorJohn McGloinNon-Executive Director CONTACTS:Jeff QuartermaineManaging Director & FormanInvestor Relations+61 484 036 RyanMedia Relations+61 420 582
Yahoo
2 hours ago
- Yahoo
This app turns your iPhone into a scanner, and it's yours for life
The following content is brought to you by Mashable partners. If you buy a product featured here, we may earn an affiliate commission or other compensation. TL;DR: Scan anything, anywhere, with a lifetime subscription to iScanner, now A$38 (reg. A$310) with code SCAN through 10 July. Opens in a new window Credit: iScanner iScanner App: Lifetime Subscription AU$38 AU$310 Save AU$272 with code SCAN Get Deal Raise your hand if you've ever had to rush to the library to print something. If most of us don't have the space for clunky printers, chances are we also don't keep a scanner at home. That's what iScanner is for. This iOS app transforms your iPhone or iPad into a handy little scanner that works for basically any document type. It's also only A$38 (reg. A$310) for a lifetime subscription with code SCAN. Even if you're one of the few with a physical scanner still in your presence, you can now clear some counter space thanks to iScanner. And while you're at it, you can throw away that dusty old filing cabinet, too. iScanner is the number one US-based scanning and document management tool, letting you knock items off your to-do list from anywhere. Need to save a receipt for taxes? Do you have a contract you need to digitize? You can scan any document using just the phone on your iOS device. Students, entrepreneurs, educators, and stay-at-home moms alike will all find endless uses for a scanner in your pocket. The AI-powered tools ensure your documents' borders are detected and automatically adjusted while also straightening scan pages and ditching curves and skews. Thanks to AI, you can also use iScanner to help you solve complicated math problems. Or put its OCR technology to the test and let it help you decipher text in up to 20 languages. Once things are scanned, the app becomes a full PDF editor and file manager. Edit your scans, including signing them, adding text, or autofilling them with custom templates. Then, use the file manager's folder via drag and drop to keep them safe and organized. Scanning something confidential? You can also protect files and folders by locking them with a PIN. Use code SCAN by 20 July at 11:59 p.m. PT to get an iScanner lifetime subscription on sale for A$38. StackSocial prices subject to change.
Yahoo
3 hours ago
- Yahoo
BHP Group Limited (ASX:BHP) is favoured by institutional owners who hold 55% of the company
Significantly high institutional ownership implies BHP Group's stock price is sensitive to their trading actions A total of 25 investors have a majority stake in the company with 48% ownership Recent purchases by insiders Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Every investor in BHP Group Limited (ASX:BHP) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are institutions with 55% ownership. Put another way, the group faces the maximum upside potential (or downside risk). Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute. In the chart below, we zoom in on the different ownership groups of BHP Group. See our latest analysis for BHP Group Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. BHP Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of BHP Group, (below). Of course, keep in mind that there are other factors to consider, too. Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don't have many shares in BHP Group. The company's largest shareholder is State Street Global Advisors, Inc., with ownership of 7.1%. In comparison, the second and third largest shareholders hold about 6.0% and 5.7% of the stock. Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Our most recent data indicates that insiders own less than 1% of BHP Group Limited. However, it's possible that insiders might have an indirect interest through a more complex structure. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own AU$60m of stock. In this sort of situation, it can be more interesting to see if those insiders have been buying or selling. The general public-- including retail investors -- own 40% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. It's always worth thinking about the different groups who own shares in a company. But to understand BHP Group better, we need to consider many other factors. For example, we've discovered 2 warning signs for BHP Group (1 is significant!) that you should be aware of before investing here. But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data 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 financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio