Sigma Healthcare Ltd (SIG) AI Stock Analysis

• Market Cap: AU$35.48B
• Dividend Yield: 0.44%
• Average Volume (3M): 20.32M
• Price to Earnings (P/E): 61.1
• Beta (1Y): 0.79
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: AU
• Employees: 156
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Distribution
• EPS (TTM): 0.02
• Shares Outstanding: 11,543,703,000
• 10 Day Avg. Volume: 14,412,873
• 30 Day Avg. Volume: 20,321,286
• PEG Ratio: 1.09
• Price to Book (P/B): 5.38
• Price to Sales (P/S): 0.92
• P/FCF Ratio: -13.94
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$3.35
• Price Target Upside: 8.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: AU$3.00 ▼(-2.91% Downside)

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

Revenue Growth

Sigma Healthcare has demonstrated significant revenue growth, indicating strong market demand and effective distribution strategies, which are crucial for long-term business sustainability.

Market Position

As a leading wholesale distributor in Australia, Sigma Healthcare's strong market position provides a competitive advantage, ensuring sustained demand for its services and products.

Stable Balance Sheet

A stable balance sheet with manageable leverage enhances Sigma Healthcare's financial resilience, allowing it to navigate industry challenges and invest in growth opportunities.

Negative Factors

Profitability Challenges

Ongoing profitability issues, indicated by negative net income and EBIT, highlight operational inefficiencies that could hinder long-term financial health and growth potential.

Cash Flow Management

Negative free cash flow and lack of operating cash flow raise concerns about Sigma Healthcare's liquidity and ability to fund operations and growth initiatives sustainably.

Operational Efficiency

The absence of positive EBIT and EBITDA margins suggests inefficiencies in operations, which may limit Sigma Healthcare's ability to improve profitability and compete effectively.

Sigma Healthcare Ltd Business Overview & Revenue Model

Company Description

Sigma 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 Money

Sigma 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

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

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

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.84B	4.89B	3.32B	3.66B	3.45B	3.40B
Gross Profit	268.60M	334.05M	189.82M	224.07M	199.42M	210.61M
EBITDA	41.60M	55.47M	53.25M	50.20M	30.23M	68.96M
Net Income	-13.84M	-13.84M	4.51M	1.81M	-7.24M	43.53M
Balance Sheet
Total Assets	1.83B	1.83B	1.40B	1.20B	1.28B	1.22B
Cash, Cash Equivalents and Short-Term Investments	14.57M	14.57M	356.50M	16.65M	31.14M	16.13M
Total Debt	132.09M	132.09M	136.63M	226.99M	323.43M	215.23M
Total Liabilities	991.29M	991.29M	531.52M	723.84M	786.65M	705.00M
Stockholders Equity	837.86M	837.86M	870.77M	475.92M	487.19M	513.67M
Cash Flow
Free Cash Flow	-323.50M	-323.50M	37.25M	113.34M	-60.48M	-64.56M
Operating Cash Flow	-315.59M	-315.59M	41.97M	142.74M	-46.28M	-13.13M
Investing Cash Flow	-1.60M	-1.60M	5.73M	-28.60M	-16.59M	124.36M
Financing Cash Flow	-24.73M	-24.73M	295.82M	-116.94M	128.89M	-265.71M

Sigma Healthcare Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SIG, the sentiment is Positive. The current price of 3.09 is above the 20-day moving average (MA) of 2.94, above the 50-day MA of 2.92, and above the 200-day MA of 2.98, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 66.69 is Neutral, neither overbought nor oversold. The STOCH value of 90.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SIG.

Sigma Healthcare Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACL	71 Outperform	AU$524.76M	15.92	18.59%	4.60%	6.73%	37.16%
SHL	64 Neutral	AU$11.34B	21.46	6.32%	4.69%	9.44%	-0.37%
REG	56 Neutral	AU$2.03B	41.29	―	2.30%	14.61%	―
RHC	54 Neutral	AU$8.35B	1,228.38	0.38%	2.25%	6.82%	-99.27%
SIG	53 Neutral	AU$35.48B	61.07	―	0.44%	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
HLS	50 Neutral	€653.52M	-1.24	-67.21%	―	-23.02%	33.11%

Sigma Healthcare Ltd Corporate Events

Sigma Healthcare Director Increases Stake in Strategic Move

Sigma Healthcare Ltd announced a change in the director’s interest, with Annette Carey acquiring an additional 10,000 indirect securities through an on-market trade. This change increases her total holdings to 31,211 securities, reflecting a strategic move that may impact the company’s governance and stakeholder confidence.

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 Ltd Successfully Concludes Annual General Meeting

Sigma Healthcare Ltd recently held its Annual General Meeting where all proposed resolutions were successfully carried. Key outcomes included the adoption of remuneration reports, re-election of board members, and approval of incentive plans for executives. These decisions reflect the company’s strategic focus on rewarding leadership and ensuring continuity in its governance structure, which may positively impact its operational stability and stakeholder confidence.

The most recent analyst rating on (AU:SIG) stock is a Hold with a A$3.10 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 2025 Corporate Governance Statement

Sigma Healthcare Ltd has released its corporate governance statement for the financial year ending June 30, 2025, which is now available on their website. The statement outlines the company’s adherence to the ASX Corporate Governance Council’s principles and recommendations, highlighting their commitment to transparency and accountability. This disclosure is crucial for stakeholders as it demonstrates Sigma Healthcare’s dedication to maintaining high governance standards, which can impact investor confidence and the company’s industry positioning.

The most recent analyst rating on (AU:SIG) stock is a Hold with a A$3.10 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 2025 Corporate Governance Statement Post-Merger

Sigma Healthcare Ltd has released its Corporate Governance Statement for 2025, following its merger with Chemist Warehouse. The statement outlines the updated governance framework for the merged entity, highlighting the company’s commitment to high standards of corporate governance in line with ASX Principles and Recommendations. The Board acknowledges certain challenges post-merger, such as diversity levels and board composition, and plans to address these to align with ASX expectations. The merger has provided unique opportunities and challenges, and the Board is focused on ensuring governance practices meet the needs of the company and its stakeholders.

The most recent analyst rating on (AU:SIG) stock is a Hold with a A$3.10 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’s 2025 AGM Highlights Governance and Financial Oversight

Sigma Healthcare Ltd held its Annual General Meeting on October 22, 2025, where key business items were addressed. The meeting included discussions on financial statements, remuneration reports, re-election of directors, and the ratification of the auditor’s appointment. Additionally, two conditional spill resolutions were on the agenda, highlighting the company’s focus on governance and accountability.

The most recent analyst rating on (AU:SIG) stock is a Hold with a A$3.10 price target. To see the full list of analyst forecasts on Sigma Healthcare Ltd stock, see the AU:SIG Stock Forecast page.

Sigma Healthcare’s Transformative Merger with Chemist Warehouse Elevates Market Position

Sigma Healthcare Ltd has completed a transformative merger with Chemist Warehouse, marking a pivotal moment in its history. This merger, which has significantly increased Sigma’s market value and placed it among the top 20 companies on the ASX, aims to leverage the strengths of both companies to enhance retail expertise, product offerings, and shareholder value. The merger has already exceeded expectations, with upgraded synergy targets and reduced net debt, providing Sigma with substantial growth potential and improved access to capital markets.

The most recent analyst rating on (AU:SIG) stock is a Hold with a A$3.10 price target. To see the full list of analyst forecasts on Sigma Healthcare Ltd stock, see the AU:SIG Stock Forecast page.