ZIP share price in focus
Zip Co is a ‘fintech’ company founded in 2013. It offers a buy-now-pay-later (BNPL) service that is popular among retail consumers.
Zip’s platform allows customers to purchase items immediately and repay them over several interest-free instalments.
Like most BNPL companies, Zip makes money through transaction fees paid by the business, as well as late fees charged to customers who miss payments.
Zip Co Ltd is a growth stock, and so it requires a different set of rules and may not be straightforward to value at times. Studies have shown that over 5-10+ years, it’s top-line revenue growth which explains a stock’s performance. That’s why it’s good to see Zip Co Ltd is able to grow revenue at 75.7% per year, a strong clip.
PME shares
Pro Medicus is an established provider of radiology software for hospitals, imaging centres and health care groups worldwide.
The Pro Medicus suite of products centre 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.
ZIP share price valuation
As a growth company, some of the trends we might investigate from ZIP 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, ZIP has grown revenue at a rate of 75.7% per year to reach $868m in FY24. Over the same stretch of time, net profit has increased from -$678m to $6m. ZIP last reported a ROE of 1.8%.
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. PME’s last reported ROE 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 ZIP or PME shares. To learn more about valuation, check out one of our free online investing courses.
