Pro Medicus (ASX:PME) ROE %: 106.04% (As of Dec. 2025) — 148% Above Median


ASX:PME Pro Medicus Ltd ASX:PME
98 GF Score
Price A$178.99
GF Value A$244.83
Valuation Modestly Undervalued
! 1 Warning Sign
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What is Pro Medicus ROE %?

Pro Medicus ASX:PME +3.50% 98 ROE % is 106.04% as of Dec. 2025, which is 148% above its 10-year median of 42.83. GuruFocus rates ASX:PME with a GF Score™ of 98/100 and a GF Value™ of A$244.83 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 628 Healthcare Providers & Services companies, Pro Medicus ranks better than 96.97% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Pro Medicus's annualized net income for the quarter that ended in Dec. 2025 was A$342.4 Mil. Pro Medicus's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was A$322.9 Mil. Therefore, Pro Medicus's annualized ROE % for the quarter that ended in Dec. 2025 was 106.04%.

The historical rank and industry rank for Pro Medicus's ROE % or its related term are showing as below:

ASX:PME' s ROE % Range Over the Past 10 Years
Min: 25.82   Med: 42.83   Max: 81.1
Current: 81.1

During the past 13 years, Pro Medicus's highest ROE % was 81.10%. The lowest was 25.82%. And the median was 42.83%.

ASX:PME's ROE % is ranked better than
96.97% of 628 companies
in the Healthcare Providers & Services industry
Industry Median: 5.72 vs ASX:PME: 81.10

Pro Medicus  (ASX:PME) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=342.446/322.945
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(342.446 / 249.482)*(249.482 / 436.3085)*(436.3085 / 322.945)
=Net Margin %*Asset Turnover*Equity Multiplier
=137.26 %*0.5718*1.351
=ROA %*Equity Multiplier
=78.49 %*1.351
=106.04 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=342.446/322.945
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (342.446 / 486.6) * (486.6 / 181.256) * (181.256 / 249.482) * (249.482 / 436.3085) * (436.3085 / 322.945)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7038 * 2.6846 * 72.65 % * 0.5718 * 1.351
=106.04 %

Note: The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Pro Medicus ROE % Related Terms


Pro Medicus ROE % Historical Data

* Premium members only.

The historical data trend for Pro Medicus's ROE % 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.

Pro Medicus ROE % Chart

Pro Medicus Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 43.49 48.46 50.43 50.72 51.82

Pro Medicus Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 48.66 53.66 50.49 52.98 106.04

ASX:PME vs VEEV, BTSG, TEM: ROE % Comparison

For the Health Information Services subindustry, Pro Medicus's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Pro Medicus's ROE % distribution charts can be found below:

* The bar in red indicates where Pro Medicus's ROE % falls into.


ASX:PME
98GF Score
Pro Medicus Ltd ASX:PME
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Pro Medicus ROE % Calculation

Pro Medicus's annualized ROE % for the fiscal year that ended in Jun. 2025 is calculated as

ROE %=Net Income (A: Jun. 2025 )/( (Total Stockholders Equity (A: Jun. 2024 )+Total Stockholders Equity (A: Jun. 2025 ))/ count )
=115.217/( (187.728+256.963)/ 2 )
=115.217/222.3455
=51.82 %

Pro Medicus's annualized ROE % for the quarter that ended in Dec. 2025 is calculated as

ROE %=Net Income (Q: Dec. 2025 )/( (Total Stockholders Equity (Q: Jun. 2025 )+Total Stockholders Equity (Q: Dec. 2025 ))/ count )
=342.446/( (256.963+388.927)/ 2 )
=342.446/322.945
=106.04 %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is two times the semi-annual (Dec. 2025) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 106.04% mean?
Pro Medicus (ASX:PME) has a ROE % of 106.04% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Pro Medicus and its competitors. This is 148% above median its historical median of 42.83. Over the past decade, Pro Medicus' ROE % has ranged from 25.82 to 81.10. According to the industry distribution chart, Pro Medicus ranks #19 out of 628 companies in the Healthcare Providers & Services industry, placing it in the top 3%.
Is Pro Medicus' ROE % too high?
Pro Medicus' current ROE % of 106.04% is 148% above median its 10-year median of 42.83. Over the past 10 years, this metric has ranged from a low of 25.82 to a high of 81.10. The Healthcare Providers & Services industry median ROE % is 5.72. Pro Medicus' value of 106.04% is 1753.8% above this industry median. Based on the distribution chart, Pro Medicus ranks #19 out of 628 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' ROE % compare to VEEV and BTSG?
According to the Healthcare Providers & Services industry distribution chart, Pro Medicus ranks #19 out of 628 companies for ROE %. This places Pro Medicus in the top 3% of its industry — outperforming the majority of peers. The industry median ROE % is 5.72. Pro Medicus' value of 106.04% is 1753.8% above this benchmark. Historically, Pro Medicus' own ROE % has ranged from 25.82 to 81.10 over the past decade. While the company's 10-year median is 42.83 vs. the industry median of 5.72, 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 ROE % for a Healthcare Providers & Services company?
The median ROE % among Healthcare Providers & Services companies is 5.72, based on 628 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pro Medicus's current ROE % of 106.04% is 1753.8% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Pro Medicus and its competitors. For the Healthcare Providers & Services industry, the median ROE % is 5.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pro Medicus's current ROE % is 106.04%, which is 148% above median its own 10-year median of 42.83. 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$244.83, compared to a current price of A$178.99 — trading 26.9% below its estimated fair value. The current ROE % is 106.04%, which is 148% above median its 10-year median of 42.83 and 1753.8% above the Healthcare Providers & Services industry median of 5.72. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Pro Medicus (ASX:PME), the current ROE % is 106.04% 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$178.99 is trading 26.9% below its estimated GF Value™ of A$244.83. GuruFocus considers Pro Medicus to be Modestly Undervalued.

Key valuation signals for ASX:PME:

  • ROE %: 106.04% (148% above median its 10-year median of 42.83)
  • GF Value™: A$244.83 vs. price of A$178.99 (26.9% below fair value)
  • GF Score™: 98/100 with 1 warning sign
  • Industry Position: 1753.8% above the Healthcare Providers & Services median (#19 of 628)

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 Business Description

Address 450 Swan Street, Richmond, VIC, AUS, 3121
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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ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$178.99
Price
A$244.83
GF Value