Just think of a stock from the list of Top Stocks to Invest in, having a record year of new contract wins, gradually coming on stream, leading possibly to a material step-up in transaction volumes from these clients in the coming financial year. And also, best for Long Term Holding, as there is the prospect of new sales which, in its case are long term contracts adding to its base of recurring revenue.
Pro Medicus Limited (ASX: PME) exhibits a broad and substantial presence within the healthcare sector, characterized by well-established operations and a strong market foothold in radiology and IT solutions. The company is among the Best Companies to Invest in, notably committed to enhancing its offerings and pursuing further expansion in these areas.
The company reported all of its key financial metrics moving positively resulting in another record year. This being not just in terms of revenue and profits, but also other metrics like sales and implementations.
However, maintaining growth rates of 30% plus year on year becomes harder as the base gets bigger but PME believes that it can maintain the trajectory of strong, profitable growth. Its clients were growing well above industry average and with the company’s transaction-based model, if they grow, PME also grows.
Pro Medicus Limited announced its annual financial results for the fiscal year 2024, concluding on 30 June 2024, on 14 August 2024.
The company demonstrated robust sales performance throughout the year, securing nine significant contracts in North America. Among these was a noteworthy $140 million, ten-year agreement with Baylor, Scott and White, recognized as the largest not-for-profit healthcare system in Texas and one of the largest in the United States. Additionally, the company entered into a $24 million, seven-year contract with Memorial Sloan Kettering Cancer Center, a prominent not-for-profit cancer facility operating 24 inpatient and outpatient sites in the New York City metropolitan area.
The Group's total revenue for the year rose from $124.9 million to $161.5 million, reflecting a 29.3% increase from the prior corresponding period (pcp). This revenue growth was primarily driven by heightened transaction revenue in North America and increased sales of Radiology Information Systems (RIS) in Australia.
The underlying pre-tax profit for the year reached $112.2 million, compared to $83.9 million in the previous year, marking a 33.8% increase from the pcp. The reported profit after tax for the period was $82.8 million, representing a 36.5% rise from the prior year.
Furthermore, the company reported cash, bank term deposits, and other current financial assets totalling $155.4 million, an increase of 27.9% from the pcp.
The company, considered best among Growth Potential Stocks, places considerable emphasis on its expansion efforts in North America, supported by a strong array of opportunities and a notable number of prestigious contract acquisitions within both tier 1 academic institutions and IDNs. Given the large total addressable market, the company demonstrates substantial potential for scalability in this area.
Technically, the stock had gone for minor retracement after getting overbought on weekly chart. It however continues to protect its 200 EMA (Exponential moving average) on the daily timeframe. Subsequently, it has again moved above its EMAs, indicating its potential to move to higher leg of its journey.
Source: Company’s Report
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.