Pro MedicusASX:PME +1.88%98 Gross Margin % is 99.87% as of Dec. 2025, which is 0% above its 10-year median of 99.38. GuruFocus rates ASX:PME with a GF Score™ of 98/100 and a GF Value™ of A$245.06 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 631 Healthcare Providers & Services companies, Pro Medicus ranks better than 99.21% on this metric.
The historical rank and industry rank for Pro Medicus's Gross Margin % or its related term are showing as below:
ASX:PME'
s Gross Margin % Range Over the Past 10 Years
Min: 97.19 Med: 99.38 Max: 99.87
Current: 99.87
During the past 13 years, the highestGross Margin % of Pro Medicus was 99.87%. The lowest was 97.19%. And the median was 99.38%.
ASX:PME's Gross Margin % is ranked better than 99.21% of 631
companies
in the Healthcare Providers & Services industry
Industry Median: 40.09
vs ASX:PME: 99.87
Pro Medicus had a gross margin of 99.87% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Pro Medicus was 0.10% per year.
Pro Medicus (ASX:PME) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Pro Medicus had a gross margin of 99.87% for the quarter that ended in Dec. 2025 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Pro Medicus Gross Margin % Related Terms
Pro Medicus Gross Margin % Historical Data
* Premium members only.
The historical data trend for Pro Medicus's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ASX:PME vs VEEV, BTSG, TEM: Gross Margin % Comparison
For the Health Information Services subindustry, Pro Medicus's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Pro Medicus Gross Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Pro Medicus's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Pro Medicus's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Pro Medicus (ASX:PME) has a Gross Margin % of 99.87% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Pro Medicus and its competitors. This is near median its historical median of 99.38. Over the past decade, Pro Medicus' Gross Margin % has ranged from 97.19 to 99.87. According to the industry distribution chart, Pro Medicus ranks #5 out of 631 companies in the Healthcare Providers & Services industry, placing it in the top 0.8%.
Is Pro Medicus' Gross Margin % too high?
Pro Medicus' current Gross Margin % of 99.87% is near median its 10-year median of 99.38. Over the past 10 years, this metric has ranged from a low of 97.19 to a high of 99.87. The Healthcare Providers & Services industry median Gross Margin % is 40.09. Pro Medicus' value of 99.87% is 149.1% above this industry median. Based on the distribution chart, Pro Medicus ranks #5 out of 631 companies in the Healthcare Providers & Services industry, which is in the top quartile — a strong position relative to peers. Overall, Pro Medicus has a GF Score™ of 98/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Pro Medicus' Gross Margin % compare to VEEV and BTSG?
According to the Healthcare Providers & Services industry distribution chart, Pro Medicus ranks #5 out of 631 companies for Gross Margin %. This places Pro Medicus in the top 1% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.09. Pro Medicus' value of 99.87% is 149.1% above this benchmark. Historically, Pro Medicus' own Gross Margin % has ranged from 97.19 to 99.87 over the past decade. While the company's 10-year median is 99.38 vs. the industry median of 40.09, Pro Medicus has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Healthcare Providers & Services company?
The median Gross Margin % among Healthcare Providers & Services companies is 40.09, based on 631 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pro Medicus's current Gross Margin % of 99.87% is 149.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Pro Medicus and its competitors. For the Healthcare Providers & Services industry, the median Gross Margin % is 40.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pro Medicus's current Gross Margin % is 99.87%, which is near median its own 10-year median of 99.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pro Medicus stock overvalued right now?
Based on GuruFocus' analysis, Pro Medicus (ASX:PME) is currently considered Modestly Undervalued. The stock's GF Value™ is A$245.06, compared to a current price of A$188.88 — trading 22.9% below its estimated fair value. The current Gross Margin % is 99.87%, which is near median its 10-year median of 99.38 and 149.1% above the Healthcare Providers & Services industry median of 40.09. Pro Medicus' overall GF Score™ is 98/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Pro Medicus (ASX:PME), the current Gross Margin % is 99.87% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Pro Medicus (ASX:PME) Overvalued in 2026?
Based on GuruFocus' analysis, Pro Medicus stock appears to be undervalued.
The current stock price of A$188.88 is trading 22.9% below its estimated GF Value™ of A$245.06.
GuruFocus considers Pro Medicus to be Modestly Undervalued.
Key valuation signals for ASX:PME:
Gross Margin %: 99.87% (near median its 10-year median of 99.38)
GF Value™: A$245.06 vs. price of A$188.88 (22.9% below fair value)
Industry Position: 149.1% above the Healthcare Providers & Services median (#5 of 631)
No single metric tells the full story. See the ASX:PME stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pro Medicus is a healthcare IT company specializing in radiology imaging software. Its main product, Visage 7, is a clinical desktop application that radiologists use to view, enhance, and manipulate images from any device and make a diagnosis. Its main customers are US private academic hospitals. In fiscal 2025, Pro Medicus earned 90% of revenue in North America, 8% from Australia, and the remaining 2% in Europe.
98GF Score
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