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Sigma Healthcare Ltd (AU:SIG)
ASX:SIG

Sigma Healthcare Ltd (SIG) AI Stock Analysis

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AU:SIG

Sigma Healthcare Ltd

(Sydney:SIG)

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Neutral 53 (OpenAI - 4o)
Rating:53Neutral
Price Target:
AU$3.00
▲(9.09% Upside)
Action:ReiteratedDate:10/10/25
Sigma Healthcare Ltd's overall stock score is primarily influenced by its mixed financial performance, with revenue growth offset by profitability and cash flow challenges. The technical analysis suggests a mild upward trend, but valuation metrics indicate the stock may be overvalued. The absence of earnings call insights and corporate events leaves these factors unaccounted for in the score.
Positive Factors
National distribution network
A nationwide distribution network is a durable structural advantage for a healthcare wholesaler. It supports scale economics, reliable service for community pharmacies, stronger supplier negotiation, and recurring throughput volumes that underpin steady revenue and raise switching costs over the medium term.
Revenue growth trend
Consistent revenue growth signals expanding market penetration or share gains within pharmacy distribution. Over 2–6 months this trend provides a base to improve margins through scale, enhance supplier leverage, and justify investment in logistics or services that can sustainably lift profitability if conversion to cash is addressed.
Manageable leverage and stable equity base
A moderate debt profile and stable equity base provide financial flexibility to fund working capital, invest in distribution assets, or execute strategic initiatives without immediate refinancing stress. This resilience supports operational continuity and capacity to navigate sector cycles over the medium term.
Negative Factors
Negative free cash flow
Negative free cash flow and absent operating cash flow are structural red flags: they limit the company’s ability to self-fund working capital and capital expenditures, increase dependence on external financing, and constrain strategic investments or debt reduction unless cash conversion improves materially.
Persistent profitability weakness
Negative net income and EBIT indicate core operations are currently loss-making despite revenue growth. This undermines retained earnings and limits reinvestment capacity; unless operational fixes restore positive operating margins, earnings sustainability and shareholder returns remain at risk.
Operational inefficiencies and cash management
Documented operational inefficiencies and weak cash management are structural constraints for a distribution business where margins rely on logistics efficiency. Persistent inefficiency inflates costs, compresses margins on higher volumes, and makes revenue growth less likely to translate into durable profit or cash generation.

Sigma Healthcare Ltd (SIG) vs. iShares MSCI Australia ETF (EWA)

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 generates revenue primarily through the wholesale distribution of pharmaceutical products to pharmacies and healthcare providers. Its key revenue streams include sales of prescription and over-the-counter medications, as well as health and beauty products. The company also earns income from its logistics and supply chain services, providing value-added services to pharmacies. Significant partnerships with major pharmaceutical manufacturers enable Sigma to secure competitive pricing and a diverse product range, further contributing to its earnings. Additionally, Sigma's focus on expanding its network of pharmacies and enhancing its service offerings strengthens its market position and revenue potential.

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 stable with manageable leverage, but the company needs to improve operational efficiency and cash flow management.
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.
BreakdownTTMJan 2025Jan 2024Jan 2023Jan 2022Jan 2021
Income Statement
Total Revenue8.51B4.89B3.32B3.66B3.45B3.40B
Gross Profit1.16B334.05M189.82M224.07M199.42M210.61M
EBITDA614.50M55.47M53.25M50.20M30.23M68.96M
Net Income362.26M-13.84M4.51M1.81M-7.24M43.53M
Balance Sheet
Total Assets8.74B1.83B1.40B1.20B1.28B1.22B
Cash, Cash Equivalents and Short-Term Investments163.13M14.57M356.50M16.65M31.14M16.13M
Total Debt3.04B132.09M136.63M226.99M323.43M215.23M
Total Liabilities3.85B991.29M531.52M723.84M786.65M705.00M
Stockholders Equity4.90B837.86M870.77M475.92M487.19M513.67M
Cash Flow
Free Cash Flow80.43M-323.50M37.25M113.34M-60.48M-64.56M
Operating Cash Flow109.69M-315.59M41.97M142.74M-46.28M-13.13M
Investing Cash Flow31.58M-1.60M5.73M-28.60M-16.59M124.36M
Financing Cash Flow-339.17M-24.73M295.82M-116.94M128.89M-265.71M

Sigma Healthcare Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.75
Price Trends
50DMA
2.98
Negative
100DMA
2.98
Negative
200DMA
2.98
Negative
Market Momentum
MACD
-0.04
Positive
RSI
25.16
Positive
STOCH
6.27
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SIG, the sentiment is Negative. The current price of 2.75 is below the 20-day moving average (MA) of 3.02, below the 50-day MA of 2.98, and below the 200-day MA of 2.98, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 25.16 is Positive, neither overbought nor oversold. The STOCH value of 6.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SIG.

Sigma Healthcare Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
AU$11.79B21.516.32%4.69%9.44%-0.37%
59
Neutral
AU$426.65M16.6918.59%4.60%6.73%37.16%
56
Neutral
AU$2.11B55.072.30%14.61%
54
Neutral
AU$9.91B36.290.38%2.25%6.82%-99.27%
53
Neutral
€31.58B56.130.44%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
46
Neutral
€486.51M-0.89-67.21%-23.02%33.11%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SIG
Sigma Healthcare Ltd
2.75
-0.17
-5.73%
AU:HLS
Healius Limited
0.67
-0.32
-32.12%
AU:RHC
Ramsay Health Care
43.13
10.36
31.62%
AU:REG
Regis Healthcare Ltd.
6.97
0.53
8.23%
AU:SHL
Sonic Healthcare Limited
23.86
-2.72
-10.22%
AU:ACL
Australian Clinical Labs Ltd
2.23
-0.74
-24.92%

Sigma Healthcare Ltd Corporate Events

Sigma Healthcare Announces A$0.02 Interim Dividend for Half‑Year to December 2025
Feb 26, 2026

Sigma Healthcare has declared an ordinary interim dividend of A$0.02 per fully paid share, relating to the six‑month period ending 31 December 2025. The dividend will trade ex‑dividend on 4 March 2026, with a record date of 5 March and payment scheduled for 20 March, signalling ongoing cash returns to shareholders and reflecting the company’s current capital management stance.

The announcement confirms the payout is tied to Sigma’s half‑year performance and follows the standard timetable for ASX‑listed distributions. While no additional approvals were noted as required, the move underlines management’s confidence in the company’s ability to generate distributable earnings and may be seen as supportive for investor income expectations in the healthcare distribution space.

The most recent analyst rating on (AU:SIG) stock is a Hold with a A$3.20 price target. To see the full list of analyst forecasts on Sigma Healthcare Ltd stock, see the AU:SIG Stock Forecast page.

Sigma Healthcare posts double-digit profit growth as Chemist Warehouse network expands
Feb 25, 2026

Sigma Healthcare reported robust first-half 2026 results, with revenue rising 14.9% to $5.5 billion, normalised EBIT up 18.7% to $582.9 million and normalised NPAT up 19.2% to $392.0 million, underpinned by strong Chemist Warehouse store sales and growing international operations. Australian Chemist Warehouse branded sales climbed 17.2% to $5.1 billion, supported by like-for-like growth of 15.0%, an expanding store network, increased GLP-1 medicine sales and the shift to fulfilling online orders from stores.

Management is also reinvigorating the Amcal and Discount Drug Stores brands, completing the conversion of MyChemist franchise stores and planning additional Amcal openings, while expanding its portfolio of owned and exclusive label products, led by Wagner generics. International retail network sales grew 24.5% to more than $807 million, with rapid store rollout in New Zealand and Ireland, where a new distribution centre is improving operational capability and underlining the transferability of the Chemist Warehouse model.

Supply-chain scale is delivering efficiencies, as a 5.1% increase in units distributed was achieved with only a 0.3% rise in warehouse and distribution costs, helping lift normalised EBIT margin by 34 basis points and earnings per share by 19.4%. Integration of the merged group is progressing to plan, with $13 million in early synergies, a strong balance sheet featuring net debt of $635.1 million at just 0.6 times normalised EBITDA, and an interim fully franked dividend of 2.0 cents per share reflecting robust cash generation.

The most recent analyst rating on (AU:SIG) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Sigma Healthcare Ltd stock, see the AU:SIG Stock Forecast page.

Sigma Healthcare posts profit jump as Chemist Warehouse merger reshapes reporting
Feb 25, 2026

Sigma Healthcare, now reporting as a merged group with Chemist Warehouse, has aligned its financial year with Chemist Warehouse’s 30 June year-end following ASIC relief and corresponding ASX confirmations. The reverse acquisition accounting means prior-period comparatives reflect Chemist Warehouse only, reshaping how investors interpret the group’s historical performance and scale.

For the half year to 31 December 2025, the merged group posted sales of $5.51 billion, up 180.5% on the prior corresponding period, and net profit after tax of $379.1 million, an increase of 23.1%. Despite stronger earnings, net tangible asset backing per share fell sharply to 9.0 cents, while the board declared a fully franked interim dividend of 2.0 cents per share for the year ending 30 June 2026, signalling an ongoing commitment to shareholder returns.

The group reported no gains or losses of control over material entities during the period and has no dividend reinvestment plan in place. The reviewed half-year accounts, signed off without modification by PwC, provide the first comprehensive snapshot of the combined Sigma–Chemist Warehouse business and will serve as the baseline for future market disclosures.

The most recent analyst rating on (AU:SIG) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Sigma Healthcare Ltd stock, see the AU:SIG Stock Forecast page.

Sigma Healthcare Issues 2.4 Million Unquoted Performance Rights Under Employee Incentive Scheme
Jan 15, 2026

Sigma Healthcare has notified the market of the issue of 2,403,962 unquoted performance rights under its employee incentive scheme, effective 9 January 2026. The new grants, which are not intended to be quoted on the ASX, form part of Sigma’s broader approach to staff remuneration and retention, aligning employee rewards with company performance and potentially impacting future equity dilution for existing shareholders.

The most recent analyst rating on (AU:SIG) stock is a Buy with a A$3.39 price target. To see the full list of analyst forecasts on Sigma Healthcare Ltd stock, see the AU:SIG Stock Forecast page.

Sigma Healthcare Grants Additional Performance Rights to Director Mario Verrocchi
Jan 15, 2026

Sigma Healthcare has disclosed a change in the interests of director Mario Verrocchi, who has been granted 314,021 rights to acquire fully paid ordinary shares under the company’s 2025 Long Term Incentive Plan, approved at its 2025 annual general meeting. The performance rights, issued for nil consideration as part of Verrocchi’s remuneration package, increase his direct holdings to include these 2025 LTI rights in addition to his existing substantial direct and indirect shareholdings, underscoring Sigma’s continued use of equity-based incentives to align executive interests with those of shareholders.

The most recent analyst rating on (AU:SIG) stock is a Buy with a A$3.39 price target. To see the full list of analyst forecasts on Sigma Healthcare Ltd stock, see the AU:SIG Stock Forecast page.

Sigma Healthcare Grants Long-Term Incentive Rights to Director Danielle Di Pilla
Jan 15, 2026

Sigma Healthcare has disclosed a change in director Danielle Di Pilla’s interests following the grant of 141,591 performance rights under the company’s 2025 Long Term Incentive Plan. The rights, issued for nil consideration as part of her employee incentive package and approved at the 2025 AGM, increase Di Pilla’s direct holdings to include both her substantial existing shareholding and the new long-term incentive rights, while her indirect interests via the Di Pilla Family Trust remain unchanged, underscoring Sigma’s continued use of equity-based remuneration to align executive interests with shareholder value.

The most recent analyst rating on (AU:SIG) stock is a Buy with a A$3.39 price target. To see the full list of analyst forecasts on Sigma Healthcare Ltd stock, see the AU:SIG Stock Forecast page.

Sigma Healthcare Grants Additional Long-Term Incentive Rights to CEO Vikesh Ramsunder
Jan 15, 2026

Sigma Healthcare has disclosed a change in the equity interests of its director and chief executive, Vikesh Ramsunder, following the allocation of new performance rights under its long-term incentive framework. The grant, made for nil consideration as part of the company’s 2025 Long Term Incentive Plan approved at the 2025 AGM, adds 813,449 rights to acquire fully paid ordinary shares to Ramsunder’s existing holdings, underscoring Sigma’s continued use of equity-based remuneration to align executive incentives with shareholder value and long-term performance.

The most recent analyst rating on (AU:SIG) stock is a Buy with a A$3.39 price target. To see the full list of analyst forecasts on Sigma Healthcare Ltd stock, see the AU:SIG Stock Forecast page.

Sigma Healthcare Sets Date for FY26 Half-Year Results and Investor Webcast
Jan 13, 2026

Sigma Healthcare has advised that it will publish its FY26 half-year financial results for the period ending 31 December 2025 to the ASX on the morning of Thursday, 26 February 2026. The company will follow the release with an investor webcast presentation at 10:00am AEDT on the same day, with access details to be provided closer to the date and made available via its investor relations website, signalling its ongoing engagement with investors and the market ahead of the interim results.

The most recent analyst rating on (AU:SIG) stock is a Buy with a A$3.39 price target. To see the full list of analyst forecasts on Sigma Healthcare Ltd stock, see the AU:SIG Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Oct 10, 2025