Pro MedicusASX:PME +3.58%98 Operating Margin % is 72.65% as of Dec. 2025, which is 26% above its 10-year median of 57.65. GuruFocus rates ASX:PME with a GF Score™ of 98/100 and a GF Value™ of A$244.95 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 668 Healthcare Providers & Services companies, Pro Medicus ranks better than 99.4% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Pro Medicus's Operating Income for the
six
months ended in Dec. 2025 was A$90.6 Mil. Pro Medicus's Revenue for the
six
months ended in Dec. 2025 was A$124.7 Mil. Therefore, Pro Medicus's Operating Margin % for the quarter that ended in Dec. 2025 was 72.65%.
Good Sign:
Pro Medicus Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Pro Medicus's Operating Margin % or its related term are showing as below:
ASX:PME'
s Operating Margin % Range Over the Past 10 Years
Min: 34.58 Med: 57.65 Max: 74.16
Current: 74.16
ASX:PME's Operating Margin % is ranked better than 99.4% of 668
companies
in the Healthcare Providers & Services industry
Industry Median: 4.845
vs ASX:PME: 74.16
Pro Medicus's 5-Year Average Operating Margin % Growth Rate was 5.90% per year.
Pro Medicus's Operating Income for the
six
months ended in Dec. 2025 was A$90.6 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was A$178.4 Mil.
Pro Medicus (ASX:PME) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Pro Medicus Operating Margin % Related Terms
Pro Medicus Operating Margin % Historical Data
* Premium members only.
The historical data trend for Pro Medicus's Operating 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: Operating Margin % Comparison
For the Health Information Services subindustry, Pro Medicus's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Pro Medicus's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Pro Medicus's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Pro Medicus's Operating Margin % for the fiscal year that ended in Jun. 2025 is calculated as
* 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.
Pro Medicus (ASX:PME) has a Operating Margin % of 72.65% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Pro Medicus and its competitors. This is 26% above median its historical median of 57.65. Over the past decade, Pro Medicus' Operating Margin % has ranged from 34.58 to 74.16. According to the industry distribution chart, Pro Medicus ranks #4 out of 668 companies in the Healthcare Providers & Services industry, placing it in the top 0.59999999999999%.
Is Pro Medicus' Operating Margin % too high?
Pro Medicus' current Operating Margin % of 72.65% is 26% above median its 10-year median of 57.65. Over the past 10 years, this metric has ranged from a low of 34.58 to a high of 74.16. The Healthcare Providers & Services industry median Operating Margin % is 4.85. Pro Medicus' value of 72.65% is 1399.5% above this industry median. Based on the distribution chart, Pro Medicus ranks #4 out of 668 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' Operating Margin % compare to VEEV and BTSG?
According to the Healthcare Providers & Services industry distribution chart, Pro Medicus ranks #4 out of 668 companies for Operating Margin %. This places Pro Medicus in the top 1% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.85. Pro Medicus' value of 72.65% is 1399.5% above this benchmark. Historically, Pro Medicus' own Operating Margin % has ranged from 34.58 to 74.16 over the past decade. While the company's 10-year median is 57.65 vs. the industry median of 4.85, 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 Operating Margin % for a Healthcare Providers & Services company?
The median Operating Margin % among Healthcare Providers & Services companies is 4.85, based on 668 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pro Medicus's current Operating Margin % of 72.65% is 1399.5% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Pro Medicus and its competitors. For the Healthcare Providers & Services industry, the median Operating Margin % is 4.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pro Medicus's current Operating Margin % is 72.65%, which is 26% above median its own 10-year median of 57.65. 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$244.95, compared to a current price of A$185.39 — trading 24.3% below its estimated fair value. The current Operating Margin % is 72.65%, which is 26% above median its 10-year median of 57.65 and 1399.5% above the Healthcare Providers & Services industry median of 4.85. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Pro Medicus (ASX:PME), the current Operating Margin % is 72.65% 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$185.39 is trading 24.3% below its estimated GF Value™ of A$244.95.
GuruFocus considers Pro Medicus to be Modestly Undervalued.
Key valuation signals for ASX:PME:
Operating Margin %: 72.65% (26% above median its 10-year median of 57.65)
GF Value™: A$244.95 vs. price of A$185.39 (24.3% below fair value)
Industry Position: 1399.5% above the Healthcare Providers & Services median (#4 of 668)
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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