The Pro Medicus Limited (ASX: PME) share price is up 2% to $5.05 today and up 1,206% over the past 5 years as the medical imaging specialist continues to grow sales, margins, and profits at a breakneck pace.
This morning the company issued an update reminding investors that it has $110 million in contracted revenue over the next 5 years and recently signed two major healthcare clients in the US market. It also claimed that the medical picture archiving market in the U.S. is currently worth $2 billion per year and growing.
For FY 2017 it posted a profit of $9.32 million on revenues of $31.62 million, with no debt and cash on hand of $22.8 million. Thanks to its market-leading technology and the operating leverage of its software-as-a-service business model Pro Medicus still looks one of the best small-caps money can buy on the ASX.
However, the small cap end of the market can take as fast as it gives, and Pro Medicus delivered 9.1 cents in earnings per share over FY 2017, which means it sells for 54x trailing earnings. However, much of its revenue growth is already booked in and it has the potential to justify today's valuation of more than $500 million.
