The Pro Medicus Limited (ASX: PME) share price is up 60 cents or 5% to $12.71 today despite the software-as-a-service medical imaging business releasing no price sensitive news to the market since before Christmas 2018.
In FY 2018 Pro Medicus posted a net profit after tax of $12.7 million and paid 6 cents per share in dividends, with analysts forecasting earnings per share of 13.7 cents in FY 2019 and 17 cents in FY 2020.
The company also boasts a large sales pipeline according to a management team that has a track record of delivering on its lofty promises – unlike a lot of other businesses on the ASX.
Pro Medicus also has a market-leading software product in its Visage 7 imaging system and has signed up some of the world's most cutting edge private healthcare providers in the U.S.
It still has a potentially long growth runway ahead of it in the major healthcare markets of the U.S. and Europe while operating at the intersection of two great growth sectors in healthcare and technology.
This and its rapid rate of growth partly explain its lofty valuation on more than 100x trailing net profit as investors believe the profit growth could continue for a long time yet.
Other successful businesses in the software-as-a-service space worth 3 to 4x Pro Medicus include WiseTech Global Ltd (ASX: WTC) and Xero Limited (ASX: XRO).
