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Sigma Healthcare Ltd (AU:SIG)
ASX:SIG
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Sigma Healthcare Ltd (SIG) AI Stock Analysis

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AU:SIG

Sigma Healthcare Ltd

(Sydney:SIG)

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Rating:43Neutral
Price Target:
AU$3.00
▲(7.14% Upside)
Action:Reiterated
Date:10/10/25
Sigma Healthcare's elevated valuation, persistently weak profitability, and deteriorating cash flow are the most significant risks, limiting its overall score. While topline growth and an improved balance sheet are positives, they are outweighed by the lack of earnings and cash flow support for the current price. Technical indicators show only mild momentum, signaling limited near-term catalysts for improvement.
Positive Factors
Scale & Distribution Network
Sigma's national wholesale and logistics footprint and pharmacy support services provide durable scale advantages. A broad distribution network supports recurring volume, strengthens supplier and retailer relationships, and creates higher switching costs for customers, aiding long-term revenue resilience.
Negative Factors
Negative Free Cash Flow
Persistent negative free cash flow and absent operating cash flow reduce Sigma's ability to self-fund working capital, capex, or initiatives to improve margins. Over months this raises liquidity and refinancing risk, increasing dependence on external funding and constraining strategic flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale & Distribution Network
Sigma's national wholesale and logistics footprint and pharmacy support services provide durable scale advantages. A broad distribution network supports recurring volume, strengthens supplier and retailer relationships, and creates higher switching costs for customers, aiding long-term revenue resilience.
Read all positive factors

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

Sigma Healthcare Ltd Business Overview & Revenue Model

Company Description
Sigma Healthcare Limited, together with its various operating divisions, primarily engages in the wholesale supply and distribution of pharmaceutical goods across Australia. The company also manages a significant network of approximately 1,200 ret...
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 h...

Sigma Healthcare Ltd Financial Statement Overview

Summary
Sigma Healthcare exhibits strong revenue growth, but persistently low (and sometimes negative) profit margins and deteriorating cash flow overshadow improvements in capital structure. The balance sheet benefits from reduced leverage, but recurring operating losses and cash burn present ongoing risks.
Income Statement
47
Neutral
Balance Sheet
62
Positive
Cash Flow
28
Negative
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
Neutral
Last Price2.80
Price Trends
50DMA
2.86
Positive
100DMA
2.83
Positive
200DMA
2.87
Positive
Market Momentum
MACD
0.02
Positive
RSI
45.41
Neutral
STOCH
31.75
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 2.8 is below the 20-day moving average (MA) of 2.94, below the 50-day MA of 2.86, and below the 200-day MA of 2.87, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 45.41 is Neutral, neither overbought nor oversold. The STOCH value of 31.75 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
AU$1.08B53.479.57%12.52%23.99%
58
Neutral
AU$75.58B-23.117.56%3.68%-2.49%-179.79%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
47
Neutral
AU$223.47M-16.67-4.47%-21.29%-167.20%
46
Neutral
AU$262.42M-3.08-23.02%-1.55%35.60%
43
Neutral
AU$33.30B-331.25-1.62%0.44%
39
Underperform
AU$20.02M-5.074388.00%-53.90%57.52%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SIG
Sigma Healthcare Ltd
2.90
0.10
3.68%
AU:MYX
Mayne Pharma Group
3.23
-1.84
-36.29%
AU:CSL
CSL
166.48
-49.78
-23.02%
AU:NAN
Nanosonics Limited
3.64
-0.41
-10.12%
AU:PGC
Paragon Care Limited
0.14
-0.27
-66.25%
AU:PKP
Althea Group Holdings Ltd.
0.02
>-0.01
-31.82%

Sigma Healthcare Ltd Corporate Events

Sigma Healthcare to Release Over 5 Billion Escrowed Shares Held by Chemist Warehouse Founders
Jul 9, 2026
Sigma Healthcare will release 5,023,079,098 fully paid ordinary shares from voluntary escrow at the close of trading on 27 August 2026, coinciding with the announcement of its financial results for the period ending 30 June 2026. These shares are ...
Sigma Healthcare Sets Date for FY26 Results and Investor Webcast
Jul 2, 2026
Sigma Healthcare has advised that it will publish its full year results for the 12 months to 30 June 2026 on the morning of 27 August 2026, giving investors a clear timetable for the release of key financial and operational information. Following ...
Sigma Confirms Exploratory Talks in Boots Sale Process
Jun 9, 2026
Sigma Healthcare has addressed recent media reports linking it to the sale process of UK-based pharmacy chain The Boots Group, confirming it has held preliminary discussions. The company stated that these talks are part of its ongoing review of op...
Sigma Healthcare boosts Chemist Warehouse growth, enters UK and expands NZ logistics
May 4, 2026
Sigma Healthcare reported robust sales growth across Chemist Warehouse branded stores, with Australian like-for-like sales up 14.4% and international like-for-like sales up 11.8%, underpinned by sustained demand and a lasting uplift from GLP1-rela...
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