Pro Medicus Ltd (ASX: PME) shares are slipping today.
Shares in the S&P/ASX 200 Index (ASX: XJO) health imaging company closed trading yesterday for $185.77. During the Thursday lunch hour, shares are swapping hands for $183.26 apiece, down 1.4%.
For some context, the ASX 200 is down 0.7% at this same time.
As you may know, Pro Medicus shares have come under heavy selling pressure since notching an all-time closing high of $330.48 on 17 July.
That high water mark followed a tremendous run after the ASX 200 stock plumbed one-year closing lows on 7 April. Investors who timed it right and bought the stock at the 7 April lows would have been sitting on gains of 86.8% by 17 July.
Which would have been an opportune time to sell.
Indeed, the ASX healthcare stock has now plunged 44.5% since its record close in July.
Which brings us back to our headline question.
Should you buy Pro Medicus shares today?
Medallion Financial Group's Stuart Bromley recently ran his slide rule over the embattled stock (courtesy of The Bull).
"The company provides medical imaging software and services to hospitals and healthcare groups across the world," Bromley said.
He noted:
The company retains best-in-class imaging software that should generate high margins and structural growth from a steady flow of new contract wins amid bigger and longer contract renewals with existing customers.
But Bromley isn't quite ready to pull the trigger yet, with a current hold recommendation on Pro Medicus shares.
"The significant share price retreat leaves PME as a hold but also presents an opportunity to enter a top-class business at an attractive price," he concluded.
Is the ASX 200 healthcare stock turning a profit?
While not a hard and fast rule, I do like to see companies I'm considering investing in turn a profit.
And on that front, Pro Medicus shares fit the bill.
In FY 2025, the company reported a 31.9% year-on-year increase in revenue from ordinary activities to $213.0 million. That came amid a record-setting year for new contract wins and contract renewals.
And on the bottom line, the company achieved an underlying profit before tax of $163.3 million, up 40.2% from FY 2024.
Also pleasing, at the end of the 2025 financial year, Pro Medicus had no debt.
"All key financial metrics headed in the right direction," Pro Medicus CEO Sam Hupert said of the results.
Hupert added:
Importantly we continued our trajectory of strong, profitable growth. The majority of the contracts that we signed were in the second half of the year and will come on stream this coming year and beyond, so there is a very sizeable revenue pathway in front of us.
