★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
VOL. XCIV, NO. 247
Stock Profile
Pro Medicus Limited (PME) Moat Analysis
Pro Medicus Limited
PME · ASX
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
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Overview
Pro Medicus sells medical imaging software, led by Visage 7 enterprise imaging and a smaller Australian RIS business. FY2026 external product sales were 93.5% PACS and 6.5% RIS. Visage 7 benefits from workflow and data switching costs created by enterprise deployments and archive migrations. Full-stack adoption across viewer, archive, workflow, cardiology, and five- to ten-year contracts reinforces those costs. FY2026 revenue rose 22.9% to A$261.7m and underlying EBIT rose 24.4% to A$196.1m. The company signed 10 new contracts with A$407m of minimum value and renewed all six expiring contracts for A$141m. Its streaming architecture is product differentiation rather than a supply-chain choke point. Incumbent bundling, interoperability, renewal concentration, and narrowing performance gaps are the main risks.
Primary segment
Visage 7 Enterprise Imaging Platform (PACS / CloudPACS)
Market structure
Oligopoly
Market share
—
HHI: —
Coverage
2 segments · 6 tags
Updated 2026-08-23
Segments
Visage 7 Enterprise Imaging Platform (PACS / CloudPACS)
Enterprise imaging / PACS and related modules for hospitals and integrated delivery networks (IDNs)
Revenue
93.5%
Structure
Oligopoly
Pricing
strong
Share
—
Peers
Visage RIS (Radiology Information System) and Promedicus.net
Radiology information systems (RIS) / radiology practice management software
Revenue
6.5%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Moat Claims
Visage 7 Enterprise Imaging Platform (PACS / CloudPACS)
Enterprise imaging / PACS and related modules for hospitals and integrated delivery networks (IDNs)
FY2026 revenue share is PACS external sales of A$244.621m divided by A$261.616m of PACS and RIS external sales. The prior 55% figure was removed because 11 of the top 20 U.S. hospitals is a selected-customer penetration statistic, not overall PACS market share. Source: https://financialfilings.com/filings/pro-medicus-limited/annual-report/2026/56485394/
Data Workflow Lockin
Demand
Data Workflow Lockin
Strength
Durability
Confidence
Evidence
Enterprise imaging deployments require archive migration and deep EHR/clinical workflow integration, increasing switching costs once live at scale.
Data Workflow Lockin moat: definition, examples, and stocks
Erosion risks
- Interoperability mandates and data portability reducing switching friction
- Growth of vendor-neutral archives/viewers that decouple the stack
- Cloud standardization making infrastructure less sticky
Leading indicators
- Contract renewals and expansion wins (add-on modules)
- Transaction-based revenue growth from existing customers
- Competitive RFP win/loss rate in large IDNs
Counterarguments
- Large incumbents can bundle imaging IT with broader enterprise deals and services
- Cloud-first architectures may reduce long-run switching costs versus on-premise PACS
Suite Bundling
Demand
Suite Bundling
Strength
Durability
Confidence
Evidence
The platform is sold as a modular full stack (viewer, archive, workflow), increasing share-of-wallet and reducing reliance on third-party point solutions.
Suite Bundling moat: definition, examples, and stocks
Erosion risks
- Customers preferring best-of-breed point solutions
- Procurement mandates for modular, interoperable components
- Pricing pressure if buyers unbundle at renewal
Leading indicators
- Attach rate of archive/workflow/cardiology modules
- Average contract value and module mix
- Share of customers expanding beyond core viewer
Counterarguments
- Vendor-neutral strategies can limit the value of bundling
- Incumbents may bundle PACS with imaging equipment/service contracts
Long Term Contracts
Demand
Long Term Contracts
Strength
Durability
Confidence
Evidence
Five- to ten-year enterprise agreements reduce near-term displacement risk and provide contracted minimum revenue, while transaction-based pricing preserves upside from customer exam growth.
Long Term Contracts moat: definition, examples, and stocks
Erosion risks
- Customer consolidation or procurement intervention at renewal
- Implementation or service failures creating termination disputes
- Long terms delaying, rather than eliminating, competitive displacement
Leading indicators
- Renewal rate and renewal pricing
- Remaining minimum contract value
- Average term and transaction-volume growth
Counterarguments
- Contracts expire and customers can run competitive tenders at renewal
- Large health systems retain bargaining power despite switching costs
Visage RIS (Radiology Information System) and Promedicus.net
Radiology information systems (RIS) / radiology practice management software
FY2026 revenue share is RIS external sales of A$16.995m divided by A$261.616m of PACS and RIS external sales. This business also includes Promedicus.net products under the annual report product description. Source: https://financialfilings.com/filings/pro-medicus-limited/annual-report/2026/56485394/
Switching Costs General
Demand
Switching Costs General
Strength
Durability
Confidence
Evidence
RIS is embedded in scheduling, billing, and clinical workflow; Pro Medicus describes its RIS as a clear market leader in Australia and cites renewals/transaction volumes from large customers.
Switching Costs General moat: definition, examples, and stocks
Erosion risks
- Hospital EHR vendors expanding RIS-like modules and integrations
- New cloud-native RIS entrants and price competition
- Concentration risk if a small number of large customers drive volumes
Leading indicators
- Renewal outcomes and total contract value changes in Australia
- Transaction volumes from major customers
- Competitive wins/losses in new radiology group tenders
Counterarguments
- Leadership claims may not translate into durable pricing power in a small market
- Customers may switch if integrated hospital platforms reduce workflow friction
Evidence
Visage will complete the migration from Trinity Health's legacy PACS system comprising nine vendors...
Multi-vendor PACS consolidation and archive migration imply high workflow/data switching costs.
...clients ... implementing additional offerings... thereby eliminating the need for third-party stand-alone solutions.
Module expansion suggests increasing workflow/tooling dependence within the platform over time.
committing to a second five-year term at an increased fee per exam
A renewal after five years, with higher transaction pricing and minimums, is direct evidence of retention and customer willingness to deepen the installed relationship.
total renewals for the financial year to A$141M, maintaining our track record of client retention
A further incumbent renewal and module expansion makes retention evidence repeatable rather than dependent on one customer.
Contract is for "full stack" - Visage 7 Viewer, Visage 7 Open Archive and Visage 7 Workflow
Shows bundling of multiple modules in a single enterprise deal.
Showing 5 of 13 sources.
Risks & Indicators
Erosion risks
- Interoperability mandates and data portability reducing switching friction
- Growth of vendor-neutral archives/viewers that decouple the stack
- Cloud standardization making infrastructure less sticky
- Customers preferring best-of-breed point solutions
- Procurement mandates for modular, interoperable components
- Pricing pressure if buyers unbundle at renewal
Leading indicators
- Contract renewals and expansion wins (add-on modules)
- Transaction-based revenue growth from existing customers
- Competitive RFP win/loss rate in large IDNs
- Attach rate of archive/workflow/cardiology modules
- Average contract value and module mix
- Share of customers expanding beyond core viewer
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