PLS share price in focus
Pilbara Minerals is a leading ASX-listed lithium company, known for owning 100% of the world’s largest independent hard-rock lithium operation, Pilgangoora, which it acquired in 2014.
The company’s main business is the extraction and sale of spodumene concentrate (lithium-bearing rocks), which it sells through long-term offtake agreements and spot sales on the Battery Material Exchange (BMX) platform. Notable offtake partners include companies like Great Wall, the Chinese automaker, and POSCO, a South Korean steel producer.
With the growing demand for lithium driven by the rise of electric vehicles and renewable energy technologies, Pilbara Minerals is often seen by bullish investors as a “pure play” on the green tech boom. However, as a commodities producer, the company’s revenue is still subject to significant fluctuations in the global price of spodumene.
PME shares
Pro Medicus is an established provider of radiology software for hospitals, imaging centres and healthcare groups worldwide.
The Pro Medicus suite of products centres around radiology information systems (RIS), Picture Archiving and Communication Systems (PACS), and advanced visualisation solutions. These products support everything from patient scheduling and billing to fast medical imaging interpretations and analysis, making the company relevant at every stage of the radiology process.
The company’s flagship product is their Visage software, which allows radiologists to view large image files generated by X-rays remotely on mobile devices. This wasn’t previously possible, but it now allows diagnostic decisions to be made on-the-go with the aim of improving patient outcomes.
PLS & PME share price valuation
As a growth company, some of the trends we might investigate from PLS include revenue growth, profit growth, and return on equity (ROE). These measures can indicate the growth rates and prospects of the company, as well as their ability to generate returns from their assets.
Since 2021, PLS has grown revenue at a rate of 92.5% per year to reach $1,254m in FY24. Over the same stretch of time, net profit has increased from -$51m to $257m. As for ROE, PLS last reported a ROE of 7.7%.
Over the last 3 years, PME has increased revenue at a rate of 33.4% per year to hit $162m in FY24. Meanwhile, net profit has increased from $31m to $83m. As for ROE, PME’s last reported figure was 50.7%.
Please keep in mind that context is important. These metrics give us some indication of company performance, but it’s just the start of valuing PLS or PME shares. To learn more about valuation, check out one of our free online investing courses.
