Search by ticker code:
Generic filters

Down 32% in 2022, is Pro Medicus Limited (ASX:PME) too good to pass up?

So far in 2022 the Pro Medicus Limited (ASX: PME) share price has traced 32% lower. In that time, the Australian Ethical Investment Ltd (ASX: AEF) share price has drifted 63% lower. Ouch!

PME share price

Founded in 1983, Pro Medicus is a provider of radiology IT software for hospitals, imaging centres and health care groups worldwide.

While the Pro Medicus business specialises in software, it is divided across two segments: Visage Imaging, and the Radiology Information System (RIS). Visage Imaging is now the company’s core product and allows hospitals to stream, store and analyse medical images in the cloud, with its primary focus being in the USA. RIS is the company’s original software product offered to radiology clinics to help them manage the workflow of the clinic. Its primary focus is the Australian market.

The company’s value proposition partly lies within its flagship Visage software which allows radiologists to view large image files generated by X-rays remotely on mobile devices. This allows diagnostic decisions to be made on the go and ideally improves patient outcomes.

AEF share price

Australian Ethical describes itself as Australia’s leading ethical investment manager. It was formed in 1986 to provide investors with wealth management products that align with their values and provide competitive returns. Investments are guided by the Australian Ethical Charter. It has billions of dollars of funds under management (FUM) across its managed funds and superannuation.

Australian Ethical’s business model is focused on helping investors manage their money, whether it’s inside Super or in a personal investment portfolio. Therefore, Australian Ethical’s various business ‘units’ intertwine and so they present results based on the type of revenue, rather than by geography or product. AEF makes most of its money from ongoing yearly management fees, with additional revenue coming from performance fees and admin fees. Australian Ethical has established itself as one of Australia’s leaders in ethical investing, complete with its own Ethical Charter, ethics committee and research team.

While some fund managers or Super funds espouse the virtues of investing ethically, it seems to us that Australian Ethical has embedded its ethical focus within its investment process, meaning ethics are considered throughout the investment process — not as an after-thought. Australian Ethical has grown its revenue at around 10% per year for three years, but its share valuation is still well above the ASX average — that means, investors are hoping for more top-line growth.

Ultimately, investors in both Pro Medicus and Australian Ethical have enjoyed the past five years of growth, but their current valuations are demanding. Therefore, they may be better on the watchlist for now.

FREE & NEW: Our Complete Passive Income Strategy

With interest rates UP, now is one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% -- or more -- in dividend passive income from the best shares, LICs, or ETFs... it's like free money credited to your bank account.

So how do the best investors do it?

Whether you have $2,000 or $2,000,000, our Chief Investment Analyst Owen Rask has just released his brand new ASX Passive Income Report. Featuring the best dividend ETFs, LICs, funds and shares, this report cannot be missed by anyone wanting passive income in 2022 and 2023.

You can INSTANTLY access Owen's report -- or get it emailed to you -- for FREE by CLICKING HERE NOW or the button below.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.