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Sigma Healthcare Ltd (AU:SIG)
ASX:SIG

Sigma Healthcare Ltd (SIG) AI Stock Analysis

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AU

Sigma Healthcare Ltd

(Sydney:SIG)

57Neutral
Sigma Healthcare Ltd's stock score is primarily impacted by its mixed financial performance, with significant issues in profitability and cash flow management. Positive revenue growth and manageable leverage are offset by the need for improved operational efficiency. Technical indicators show positive momentum, which is a favorable aspect, while valuation metrics highlight challenges due to negative profitability. The absence of recent earnings call insights and corporate events leaves the financial and technical aspects as the primary score determinants.

Sigma Healthcare Ltd (SIG) vs. S&P 500 (SPY)

Sigma Healthcare Ltd Business Overview & Revenue Model

Company DescriptionSigma Healthcare Limited, together with its subsidiaries, engages in the wholesale and distribution of pharmaceutical products primarily in Australia. It operates approximately 1,200 branded and independent pharmacy stores under the Amcal, Discount Drug Stores, Guardian, WholeLife, and PharmaSave brands. The company also provides hospital pharmacy wholesale services; dose administration aid services to the aged care sector, community pharmacy sector, and in the home; technology solutions and data analytics; and product development and support for a range of private and exclusive label products, as well as supplies medical consumables and devices to a broad range of customers, including pharmacy aged care facilities, hospitals, and clinics. In addition, it offers contract logistics services to pharmaceutical manufacturers and other supplier partners. Sigma Healthcare Limited was founded in 1912 and is headquartered in Rowville, Australia.
How the Company Makes MoneySigma Healthcare Ltd generates revenue primarily through the wholesale distribution of pharmaceuticals and healthcare products to pharmacies, hospitals, and other healthcare providers. The company operates a network of distribution centers that ensure timely delivery of products to its clients. Additionally, Sigma Healthcare earns income from its franchise and branded pharmacy operations, where it provides retail support and services to pharmacy owners. Key revenue streams include the sale of prescription medicines, over-the-counter medications, and related healthcare products. Partnerships with pharmaceutical manufacturers and government health agencies also play a significant role in driving the company's earnings, ensuring a steady supply of products and maintaining competitive pricing.

Sigma Healthcare Ltd Financial Statement Overview

Summary
Sigma Healthcare Ltd shows a mixed financial performance. Revenue growth is a positive highlight, but profitability and cash flow issues present substantial challenges. The balance sheet remains relatively stable with manageable leverage, but the company needs to improve operational efficiency and cash flow management to enhance overall financial health.
Income Statement
55
Neutral
Sigma Healthcare Ltd's revenue has seen a positive growth trend, with a significant increase in the latest year. However, the company is struggling with profitability, as evidenced by the negative net income and EBIT in the latest period. The gross profit margin is relatively stable, but the lack of positive EBIT and EBITDA margins indicates operational inefficiencies.
Balance Sheet
60
Neutral
The balance sheet shows a moderate debt-to-equity ratio, suggesting manageable leverage. However, the return on equity is low due to the negative net income, and the equity ratio indicates a balanced asset structure. The company has managed to maintain a stable equity base despite fluctuating liabilities.
Cash Flow
45
Neutral
Sigma Healthcare Ltd exhibits challenges in cash flow management. The free cash flow is negative, and there is no operating cash flow in the latest period. The inability to convert net income into free cash flow raises concerns about liquidity and cash management.
Breakdown
Mar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
4.89B3.32B3.66B3.45B3.40B
Gross Profit
334.05M189.82M224.07M199.42M210.61M
EBIT
-10.08M91.75M-68.92M-110.18M-98.39M
EBITDA
55.47M53.25M50.20M30.23M68.96M
Net Income Common Stockholders
-13.84M4.51M1.81M-7.24M43.53M
Balance SheetCash, Cash Equivalents and Short-Term Investments
14.57M356.50M16.65M31.14M16.13M
Total Assets
1.83B1.40B1.20B1.28B1.22B
Total Debt
132.09M136.63M226.99M323.43M215.23M
Net Debt
117.51M-219.87M210.34M292.29M199.10M
Total Liabilities
991.29M531.52M723.84M786.65M705.00M
Stockholders Equity
837.86M870.77M475.92M487.19M513.67M
Cash FlowFree Cash Flow
-323.50M37.25M113.34M-60.48M-64.56M
Operating Cash Flow
-315.59M41.97M142.74M-46.28M-13.13M
Investing Cash Flow
-1.60M5.73M-28.60M-16.59M124.36M
Financing Cash Flow
-24.73M295.82M-116.94M128.89M-265.71M

Sigma Healthcare Ltd Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2.97
Price Trends
50DMA
2.94
Positive
100DMA
2.90
Positive
200DMA
2.38
Positive
Market Momentum
MACD
0.01
Positive
RSI
48.23
Neutral
STOCH
38.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SIG, the sentiment is Neutral. The current price of 2.97 is below the 20-day moving average (MA) of 3.01, above the 50-day MA of 2.94, and above the 200-day MA of 2.38, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 48.23 is Neutral, neither overbought nor oversold. The STOCH value of 38.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:SIG.

Sigma Healthcare Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUSHL
72
Outperform
AU$12.82B23.436.86%4.01%10.15%6.20%
AUSIG
57
Neutral
€34.80B-1.63%0.36%45.73%-231.34%
52
Neutral
$5.04B3.15-44.58%2.85%16.08%-0.27%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SIG
Sigma Healthcare Ltd
2.97
1.72
136.65%
MAYNF
Mayne Pharma Group
4.32
0.14
3.35%
CHEOF
Cochlear
172.14
-50.26
-22.60%
CMXHF
CSL
153.68
-33.40
-17.85%
RMSYF
Ramsay Health Care
22.00
-11.23
-33.79%
AU:SHL
Sonic Healthcare Limited
26.30
0.29
1.11%

Sigma Healthcare Ltd Corporate Events

Sigma Healthcare’s 2024/25 Sustainability Report and Strategic Merger
May 15, 2025

Sigma Healthcare Ltd’s Sustainability Report for 2024/25 highlights the company’s commitment to sustainability and its recent merger with Chemist Warehouse. This merger is expected to strengthen Sigma’s market position and enhance its value chain, benefiting customers and the community. The report outlines Sigma’s governance, environmental initiatives, and approach to sustainability, reflecting its dedication to responsible business practices.

The most recent analyst rating on (AU:SIG) stock is a Buy with a A$3.45 price target. To see the full list of analyst forecasts on Sigma Healthcare Ltd stock, see the AU:SIG Stock Forecast page.

Sigma Healthcare Affirms Strong Governance Practices in Latest Statement
May 15, 2025

Sigma Healthcare Ltd has released its Corporate Governance Statement for the financial year ending January 31, 2025, which outlines the company’s adherence to the ASX Corporate Governance Council’s principles and recommendations. The statement, which is available on the company’s website, confirms that Sigma Healthcare has followed the recommended governance practices, including board management roles and responsibilities, director appointment checks, and accountability of the company secretary. This release is significant as it underscores Sigma Healthcare’s commitment to transparency and robust governance, which is crucial for maintaining investor confidence and regulatory compliance.

The most recent analyst rating on (AU:SIG) stock is a Buy with a A$3.45 price target. To see the full list of analyst forecasts on Sigma Healthcare Ltd stock, see the AU:SIG Stock Forecast page.

Sigma Healthcare Ltd Updates Corporate Governance Post-Merger
May 15, 2025

Sigma Healthcare Ltd has released its Corporate Governance Statement for 2024/25, highlighting its commitment to high standards of corporate governance and adherence to the ASX Corporate Governance Principles and Recommendations. Following its merger with Chemist Warehouse in February 2025, the company plans to review and update its corporate governance framework to align with the merged entity’s needs. The Board’s responsibilities include setting strategic goals, overseeing management, and ensuring risk management and legal compliance. The merger has also led to changes in the Board’s composition, with a mix of Executive and Non-Executive Directors.

The most recent analyst rating on (AU:SIG) stock is a Buy with a A$3.45 price target. To see the full list of analyst forecasts on Sigma Healthcare Ltd stock, see the AU:SIG Stock Forecast page.

Sigma Healthcare Ltd Releases 2024/25 Annual Report Highlighting Strategic Growth
May 15, 2025

Sigma Healthcare Ltd’s Annual Report for 2024/25 outlines the company’s financial performance, operational highlights, and strategic initiatives. The report provides insights into Sigma’s efforts to strengthen its market position through business acquisitions and enhanced financial management. It also highlights the company’s commitment to maintaining robust financial health and delivering value to its stakeholders.

The most recent analyst rating on (AU:SIG) stock is a Buy with a A$3.45 price target. To see the full list of analyst forecasts on Sigma Healthcare Ltd stock, see the AU:SIG Stock Forecast page.

Sigma Healthcare Releases Pre-Merger Reports Ahead of Strategic Merger
May 15, 2025

Sigma Healthcare Ltd has released its Annual Report and other related documents for the year ending January 31, 2025, reflecting its position before merging with the Chemist Warehouse Group. The merger, completed in February 2025, prompts a review of the company’s reporting practices to align with the new entity, highlighting a significant transition in Sigma’s operations and strategic direction.

The most recent analyst rating on (AU:SIG) stock is a Buy with a A$3.45 price target. To see the full list of analyst forecasts on Sigma Healthcare Ltd stock, see the AU:SIG Stock Forecast page.

Sigma Healthcare Director Adjusts Shareholding
May 15, 2025

Sigma Healthcare Ltd has announced a change in the director’s interest, with Damien Gance, the director, disposing of 126,500,000 ordinary shares through an off-market trade. This transaction impacts the holdings of the DGSR Family Foundation Pty Ltd, which now holds 127,329,615 ordinary shares, reflecting a strategic adjustment in the director’s financial interests within the company.

The most recent analyst rating on (AU:SIG) stock is a Sell with a A$1.00 price target. To see the full list of analyst forecasts on Sigma Healthcare Ltd stock, see the AU:SIG Stock Forecast page.

Sigma Healthcare Reports Strong EBIT Growth Post-Merger with Chemist Warehouse
May 5, 2025

Sigma Healthcare Limited announced a trading update following its merger with Chemist Warehouse Group, revealing a 36% growth in Normalised EBIT for the nine months ending March 31, 2025, consistent with Chemist Warehouse’s performance for the first half of FY25. The merger is treated as a reverse acquisition for accounting purposes, with Chemist Warehouse as the accounting acquirer, and Sigma’s financial results for FY25 will include Chemist Warehouse’s financials from the merger date. The announcement highlights significant transaction costs and the impact of inter-company sales on earnings.

Sigma Healthcare Director’s Significant Share Disposal
Apr 16, 2025

Sigma Healthcare Ltd has announced a significant change in the director’s interest, with Damien Gance disposing of 100,000,000 ordinary shares through an off-market trade. This transaction reduces the holdings of the DGSR Family Foundation Pty Ltd, for which Gance is the sole director and shareholder, potentially impacting the company’s shareholder structure and market perception.

Sigma Healthcare Granted Extension for AGM Schedule by ASIC
Mar 25, 2025

Sigma Healthcare Limited announced that the Australian Securities and Investments Commission (ASIC) has granted extensions for holding its annual general meetings (AGMs). This extension allows Sigma to align its financial reporting with Chemist Warehouse’s financial year, facilitating a smoother integration following their merger. The extension periods enable Sigma to hold AGMs by 30 November each year, providing a consistent timeline for shareholder engagement and compliance with statutory obligations.

Sigma Healthcare Reports Strong Financial Performance Ahead of Merger
Mar 19, 2025

Sigma Healthcare Limited announced its financial results for the year ending January 31, 2025, marking its last as a standalone entity before merging with Chemist Warehouse Group. The company reported a significant increase in normalised revenue and EBIT, attributed to strategic operational execution and the successful onboarding of a new supply contract. The merger is expected to enhance Sigma’s market position, creating a leading wholesaler and retail franchisor with strong growth potential both in Australia and internationally.

Sigma Healthcare Reports Revenue Growth but Faces Financial Challenges
Mar 19, 2025

Sigma Healthcare Ltd reported a significant increase in sales revenue by 45.7% for the year ending January 31, 2025, reaching $4.84 billion. Despite the revenue growth, the company experienced a net loss after tax of $12.9 million, attributed to a decrease in statutory EBIT and net tangible asset backing per share. The company declared no final dividend for the year, reflecting a cautious approach amid financial challenges.

Sigma Healthcare Announces Strategic Merger to Enhance Growth
Feb 27, 2025

Sigma Healthcare Limited has announced a merger that combines its retailing strengths with efficient supply chain capabilities, aiming to support ongoing network expansion. The merger is expected to generate significant cost synergies of $60 million annually by the fourth year, despite one-off costs of approximately $75 million. The company plans to leverage its advertising and marketing capabilities and explore growth through the rollout of Australian Franchise Network stores and offshore expansion, driven by an experienced management team.

Sigma Healthcare Ltd Announces Quotation of New Securities on ASX
Feb 27, 2025

Sigma Healthcare Ltd has announced the quotation of 17,850 fully paid ordinary securities on the Australian Securities Exchange (ASX). This move is part of the company’s strategy to enhance its market presence and provide additional value to its stakeholders through increased liquidity and potential capital growth.

State Street Corporation Reduces Holdings in Sigma Healthcare
Feb 18, 2025

State Street Corporation, through its subsidiaries, has notified that it has ceased to be a substantial holder in Sigma Healthcare Ltd as of February 14, 2025. This change in substantial holding could impact Sigma Healthcare’s shareholder composition and market perception, potentially influencing investor decisions and the company’s strategic direction.

Sigma Healthcare Ltd Announces Quotation of New Securities
Feb 18, 2025

Sigma Healthcare Ltd has announced the quotation of 1,482,422 ordinary fully paid securities on the ASX, effective from February 14, 2025. This development may enhance Sigma’s market position and liquidity, reflecting potential growth and operational expansion, which could have significant implications for investors and stakeholders.

Sigma Healthcare Ltd Announces Quotation of New Securities
Feb 18, 2025

Sigma Healthcare Ltd announced the quotation of 483,456 ordinary fully paid securities on the Australian Securities Exchange (ASX) following the exercise of options or conversion of other convertible securities. This development indicates a strategic move by Sigma Healthcare, potentially impacting its market position and offering new opportunities for its stakeholders.

Sigma Healthcare Announces Director’s Securities Restructuring
Feb 18, 2025

Sigma Healthcare Ltd announced a change in the director’s interest, indicating significant movements in securities held by Director Vikesh Ramsunder. These changes include the acquisition and disposal of various shares and rights, reflecting part of the company’s employee incentive scheme and strategic adjustments post-merger with Chemist Warehouse. The issuance and conversion of rights, along with on-market disposals, are aimed at aligning executive incentives with company performance, potentially impacting Sigma’s market positioning and shareholder value.

Sigma Healthcare Director Changes Shareholding
Feb 18, 2025

Sigma Healthcare Ltd announced a change in the interest of its director, Damien Gance. On February 14, 2025, Gance disposed of 40,000,000 ordinary shares held indirectly through various trusts, impacting his total shareholding in the company. This disposal may reflect strategic financial decisions or adjustments in the director’s investment portfolio, potentially influencing stakeholders’ perception of the company’s financial health and future prospects.

Sigma Healthcare Announces Director Departure and Shareholdings
Feb 17, 2025

Sigma Healthcare Ltd has announced a change in its board of directors, with Kathryn Spargo ceasing to be a director as of February 12, 2025. Spargo held direct and indirect interests in the company, with holdings of 349,949 fully paid ordinary shares directly and 369,730 indirectly through a self-managed superannuation fund. This change may impact the company’s governance and strategic direction, potentially affecting stakeholders’ interests.

Citigroup Ceases Major Holding in Sigma Healthcare
Feb 17, 2025

Citigroup Global Markets Australia Pty Limited has ceased to be a substantial holder in Sigma Healthcare Ltd as of February 13, 2025. The changes in relevant interests were due to contracts entered into in the ordinary course of business, affecting the voting securities of the company. This shift in holding status could impact the company’s stakeholder dynamics and market perception.

Vanguard Group Reduces Stake in Sigma Healthcare
Feb 16, 2025

The Vanguard Group, Inc., along with its controlled entities, has ceased to be a substantial holder of Sigma Healthcare Ltd as of February 13, 2025. Vanguard Group’s change in holding reflects a reduction of their voting power to 0.755%, which could impact the company’s shareholder dynamics and influence in decision-making processes.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.