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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)

Rating:54Neutral
Price Target:
AU$3.00
▼(-3.85%Downside)
Sigma Healthcare Ltd's overall stock score is primarily impacted by mixed financial performance, with significant issues in profitability and cash flow management. Technical analysis suggests some positive momentum, but valuation metrics are weak due to a high negative P/E ratio. The absence of earnings call data and corporate events means the score is mainly driven by financial and technical factors.

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

Sigma Healthcare Ltd Business Overview & Revenue Model

Company DescriptionSigma Healthcare Ltd (SIG) is a leading Australian pharmaceutical wholesaler and distribution company. It operates within the healthcare sector, providing a range of services including the wholesale distribution of pharmaceuticals, over-the-counter medicines, and other healthcare-related products. Sigma Healthcare also supports a network of branded and independent pharmacy retail outlets across 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
Positive
Last Price3.12
Price Trends
50DMA
3.01
Positive
100DMA
2.95
Positive
200DMA
2.53
Positive
Market Momentum
MACD
0.03
Positive
RSI
55.23
Neutral
STOCH
47.15
Neutral
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 3.12 is above the 20-day moving average (MA) of 3.07, above the 50-day MA of 3.01, and above the 200-day MA of 2.53, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 55.23 is Neutral, neither overbought nor oversold. The STOCH value of 47.15 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUSHL
72
Outperform
AU$12.68B23.176.86%4.05%10.15%6.20%
AUACL
66
Neutral
AU$545.97M18.0618.39%4.51%7.80%99.87%
AURHC
66
Neutral
$8.73B1,067.130.52%2.20%7.25%-99.04%
AUREG
58
Neutral
AU$2.27B150.30-276.16%1.96%25.38%
AUSIG
54
Neutral
€35.71B-1.63%0.36%45.73%-231.34%
54
Neutral
$5.31B3.29-45.39%2.79%16.77%-0.07%
AUHLS
45
Neutral
€602.69M-4.46%-7.82%98.08%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SIG
Sigma Healthcare Ltd
3.12
1.95
165.53%
AU:HLS
Healius Limited
0.83
-0.15
-14.96%
AU:RHC
Ramsay Health Care
37.65
-9.99
-20.97%
AU:REG
Regis Healthcare Ltd.
7.53
3.68
95.58%
AU:SHL
Sonic Healthcare Limited
26.39
2.49
10.42%
AU:ACL
Australian Clinical Labs Ltd
2.77
0.55
24.77%

Sigma Healthcare Ltd Corporate Events

Sigma Healthcare Director Alters Shareholding
May 30, 2025

Sigma Healthcare Ltd has announced a significant change in the shareholding interests of its director, Danielle Di Pilla. Over the course of four days in May 2025, Di Pilla disposed of a substantial number of shares, reducing her direct holdings from 61,243,218 to 31,401,068 ordinary shares. This change, executed through on-market trades, reflects a strategic decision that may impact the company’s stock market presence and influence shareholder perceptions.

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’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.

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.