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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:47Neutral
Price Target:
AU$3.00
▲(1.69%Upside)
Sigma Healthcare Ltd faces significant challenges. The most impactful issues are operational inefficiencies and poor cash flow management, leading to a low financial performance score. Technical analysis suggests continued bearish momentum. The stock's valuation is unattractive due to negative earnings and low dividend yield. These factors combine to create a cautious outlook for the stock.

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 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 with positive revenue growth but is hampered by profitability and cash flow issues. The balance sheet is stable with manageable leverage, yet operational inefficiencies and negative cash flow impact the score.
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue4.89B3.32B3.66B3.45B3.40B
Gross Profit334.05M189.82M224.07M199.42M210.61M
EBITDA55.47M53.25M50.20M30.23M68.96M
Net Income-13.84M4.51M1.81M-7.24M43.53M
Balance Sheet
Total Assets1.83B1.40B1.20B1.28B1.22B
Cash, Cash Equivalents and Short-Term Investments14.57M356.50M16.65M31.14M16.13M
Total Debt132.09M136.63M226.99M323.43M215.23M
Total Liabilities991.29M531.52M723.84M786.65M705.00M
Stockholders Equity837.86M870.77M475.92M487.19M513.67M
Cash Flow
Free 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
Negative
Last Price2.95
Price Trends
50DMA
3.08
Negative
100DMA
3.00
Negative
200DMA
2.66
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
33.62
Neutral
STOCH
13.83
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 2.95 is below the 20-day moving average (MA) of 3.14, below the 50-day MA of 3.08, and above the 200-day MA of 2.66, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 33.62 is Neutral, neither overbought nor oversold. The STOCH value of 13.83 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
51
Neutral
$7.41B0.36-61.88%2.33%16.99%1.69%
AUSIG
47
Neutral
€33.88B-1.63%0.34%45.73%-231.34%
DEPGZ
€322.11M-4.46%
$5.42B1,144.550.52%2.00%
AUSHL
73
Outperform
AU$12.83B23.446.86%3.29%10.15%6.20%
AUREG
58
Neutral
AU$2.30B152.30-276.16%2.12%25.38%
AUACL
58
Neutral
AU$549.90M18.1918.39%2.50%7.80%99.87%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SIG
Sigma Healthcare Ltd
2.95
1.71
137.90%
DE:PGZ
Healius Limited
0.42
-0.18
-30.00%
RMSYF
Ramsay Health Care
25.18
-5.20
-17.12%
AU:REG
Regis Healthcare Ltd.
7.63
3.52
85.64%
AU:SHL
Sonic Healthcare Limited
26.70
2.02
8.18%
AU:ACL
Australian Clinical Labs Ltd
2.80
0.39
16.18%

Sigma Healthcare Ltd Corporate Events

Sigma Healthcare Appoints PWC as New Auditor Post-Merger
Jun 17, 2025

Sigma Healthcare Ltd has announced the appointment of PWC as its new auditor, effective from April 23, 2025, following approval from the Australian Securities & Investment Commission. This change comes after Sigma’s merger with the Chemist Warehouse Group, with PWC being chosen for their experience as the incumbent auditor for CWG. The transition marks a strategic move for Sigma, aligning its auditing services with its expanded operations post-merger. A resolution to ratify this appointment will be presented at Sigma’s 2025 Annual General Meeting.

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 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.

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: Jun 28, 2025