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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
GuruFocus does not calculate Pro Medicus's interest coverage with the available data.
Pro Medicus's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.01.
As of today, Pro Medicus's Altman Z-Score is 74.70.
Pro Medicus (ASX:PME) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Pro Medicus has the Financial Strength Rank of 7.
Pro Medicus Financial Strength Related Terms
ASX:PME vs VEEV, BTSG, TEM: Financial Strength Comparison
For the Health Information Services subindustry, Pro Medicus's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Pro Medicus's Financial Strength distribution charts can be found below:
* The bar in red indicates where Pro Medicus's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
GuruFocus does not calculate Pro Medicus's interest coverage with the available data.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Pro Medicus Ltd has enough cash to cover all of its debt. Its financial situation is stable.
2. Debt to revenue ratio. The lower, the better.
Pro Medicus's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Pro Medicus has a Z-score of 74.70, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 74.7 is strong.
* 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 Financial Strength of 7 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Pro Medicus and its competitors. This is near median its historical median of 7.00. Over the past decade, Pro Medicus' Financial Strength has ranged from 6.00 to 10.00.
Is Pro Medicus' Financial Strength too high?
Pro Medicus' current Financial Strength of 7 is near median its 10-year median of 7.00. Over the past 10 years, this metric has ranged from a low of 6.00 to a high of 10.00. Overall, Pro Medicus has a GF Score™ of 100/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Pro Medicus' Financial Strength compare to VEEV and BTSG?
Pro Medicus' Financial Strength of 7 can be compared against companies in the Healthcare Providers & Services industry. Historically, Pro Medicus' own Financial Strength has ranged from 6.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Healthcare Providers & Services company?
A good Financial Strength depends on the Healthcare Providers & Services industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Pro Medicus and its competitors. Pro Medicus's current Financial Strength is 7, which is near median its own 10-year median of 7.00. 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 Possible Value Trap. The stock's GF Value™ is A$257.55, compared to a current price of A$172.42 — trading 33.1% below its estimated fair value. The current Financial Strength is 7, which is near median its 10-year median of 7.00. Pro Medicus' overall GF Score™ is 100/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Pro Medicus (ASX:PME), the current Financial Strength is 7 as of Jun. 2026. 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$172.42 is trading 33.1% below its estimated GF Value™ of A$257.55.
GuruFocus considers Pro Medicus to be Possible Value Trap.
Key valuation signals for ASX:PME:
Financial Strength: 7 (near median its 10-year median of 7.00)
GF Value™: A$257.55 vs. price of A$172.42 (33.1% below fair value)
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.
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