Will These Stocks Sustain Their YTD Returns - PME, WEB, NEA?

April 14, 2019 09:30 AM AEST | By Team Kalkine Media
 Will These Stocks Sustain Their YTD Returns - PME, WEB, NEA?

Pro Medicus Limited (ASX: PME)

Healthcare Technology company, Pro Medicus Limited has returned a 51.25% year-to-date yield as on 12 April 2019. The stock has witnessed a positive performance change of attractive 122.29% over the past 12 months including 40.98% surge seen in the last three months.

PME last traded at $17.310, up 0.64%, with a price to earnings multiple of 105.850x and a market capitalisation of $1.78 billion as on 12 April 2019.

The robust performance of the stock underlines the company’s solid business model that provides radiology information systems (RIS) and enterprise imaging software to diagnostic imaging groups, hospitals and other related entities.

For the First half of Fiscal 2019, the company reported after-tax profit of $9.082m, an increase of $5.888 million compared to the same period last year. During the period the Company continued to make substantial inroads into the North American market winning a critical $27.0 million contract with Partners Healthcare, the largest health system in the state of Massachusetts.

Its revenue from contracts with customers for the 6 months of the company increased from $15.886 million to $25.315 million, representing an increase of 59.4%. Besides North America, the Group has witnessed a strong performance in its European business including the extension of the contract with a capital sale of $3.049 million with the German government hospital in November.

Webjet Limited (ASX: WEB)

Travel and tourism company, Webjet Limited has recorded a 45.89% increase in its stock price year-to-date including a positive price change of 34.23% in the past three months. WEB last traded at $15.820 with a price to earnings multiple of 38.380 x and a market capitalisation of $2.1 billion as on 12 April 2019.

The company has operations through the Middle East, Europe, Asia Pacific and the Americas, connecting highly fragmented suppliers, hoteliers and travel retailers including travel agents, online travel agents, tour operators, and third party-wholesalers.

Webjet’s Total Transactional Value for 1H FY19 increased by 29%, representing a 2% increase in B2C and a 65% increase in B2B. The increase in the directly contracted B2B inventory and greater cross-sell across B2C ancillary products has resulted in the Group’s revenue margin increasing by 25bps on the previous corresponding period.

Adjusting for the impact of acquisitions, organic growth was 21% despite softness in the bookings due to the hot European summer. EBITDA before acquisition and integration costs increased by 42% and NPAT grew by 37% to $25.2 million in 1H FY19.

Nearmap Ltd (ASX: NEA)

Geospatial map technology provider, Nearmap Limited has achieved as high as 97.39% year-to-date return and the positive price change of 66.39% over the past three months. NEA last traded at $3.230, up 6.95%, on 12 April 2019.

On the back of continuing improvement in US sales, Nearmap annualised contract value rose 42% to $78.3 million in 1H FY2019, compared to the previous corresponding period. Its global customer numbers increased to over 9,300 with group average revenue per subscription increasing to $8,410 during the half-year.

The result demonstrates the favourable impact of the company’s expansion in product, technology and content with continued record US growth and a strengthening market leadership position in Australia.

Nearmap has planned to launch new innovative products in the second half including 3D content visualisation through MapBrowser. It further aims to scale for a global opportunity and become the world’s leading provider of subscription-based location intelligence.


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