| Snowflake Score | |
|---|---|
| Valuation | 6/6 |
| Future Growth | 3/6 |
| Past Performance | 1/6 |
| Financial Health | 4/6 |
| Dividends | 3/6 |
SIG Overview
Sigma Healthcare Limited, together with its subsidiaries, engages in the wholesale and distribution of pharmaceutical products primarily in Australia.
Sigma Healthcare Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | AU$0.58 |
| 52 Week High | AU$0.51 |
| 52 Week Low | AU$0.74 |
| Beta | -0.091 |
| 1 Month Change | -4.92% |
| 3 Month Change | -5.69% |
| 1 Year Change | 7.41% |
| 3 Year Change | 9.43% |
| 5 Year Change | -57.35% |
| Change since IPO | -80.21% |
Recent News & Updates
The Returns On Capital At Sigma Healthcare (ASX:SIG) Don't Inspire Confidence
What trends should we look for it we want to identify stocks that can multiply in value over the long term? Ideally, a...
Shareholders Shouldn’t Be Too Comfortable With Sigma Healthcare's (ASX:SIG) Strong Earnings
Even though Sigma Healthcare Limited ( ASX:SIG ) posted strong earnings recently, the stock hasn't reacted in a large...
Shareholder Returns
| SIG | AU Healthcare | AU Market | |
|---|---|---|---|
| 7D | 1.8% | 1.1% | 0.7% |
| 1Y | 7.4% | 13.1% | 21.4% |
Return vs Industry: SIG underperformed the Australian Healthcare industry which returned 13.1% over the past year.
Return vs Market: SIG underperformed the Australian Market which returned 21.4% over the past year.
Price Volatility
| SIG volatility | |
|---|---|
| SIG Beta | -0.091 |
| Industry Beta | 0.60 |
| Market Beta | 1 |
Stable Share Price: SIG is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: SIG's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1912 | n/a | Mark Hooper | https://www.sigmahealthcare.com.au |
Sigma Healthcare Limited, together with its subsidiaries, engages in the wholesale and distribution of pharmaceutical products primarily in Australia. It operates a network of branded and independent stores under the Amcal+, Chemist King, Discount Drug Stores, Guardian, WholeLife, and PharmaSave brands. The company also develops and support a range of private label products.
Sigma Healthcare Fundamentals Summary
| SIG fundamental statistics | |
|---|---|
| Market Cap | AU$563.54m |
| Earnings (TTM) | AU$62.79m |
| Revenue (TTM) | AU$3.49b |
9.1x
P/E Ratio0.2x
P/S RatioIs SIG overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| SIG income statement (TTM) | |
|---|---|
| Revenue | AU$3.49b |
| Cost of Revenue | AU$3.26b |
| Gross Profit | AU$230.89m |
| Expenses | AU$168.10m |
| Earnings | AU$62.79m |
Last Reported Earnings
Jul 31, 2021
Next Earnings Date
Mar 24, 2022
| Earnings per share (EPS) | 0.064 |
| Gross Margin | 6.61% |
| Net Profit Margin | 1.80% |
| Debt/Equity Ratio | 19.3% |
How did SIG perform over the long term?
See historical performance and comparisonDividends
3.4%
Current Dividend Yield35%
Payout RatioValuation
Is Sigma Healthcare undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SIG (A$0.58) is trading below our estimate of fair value (A$1.59)
Significantly Below Fair Value: SIG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SIG is good value based on its PE Ratio (9.1x) compared to the Australian Healthcare industry average (24.7x).
PE vs Market: SIG is good value based on its PE Ratio (9.1x) compared to the Australian market (19.8x).
Price to Earnings Growth Ratio
PEG Ratio: SIG is good value based on its PEG Ratio (0.4x)
Price to Book Ratio
PB vs Industry: SIG is good value based on its PB Ratio (1.1x) compared to the AU Healthcare industry average (2.2x).
Future Growth
How is Sigma Healthcare forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
22.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SIG's forecast earnings growth (22.7% per year) is above the savings rate (1.9%).
Earnings vs Market: SIG's earnings (22.7% per year) are forecast to grow faster than the Australian market (11.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SIG's revenue (1.7% per year) is forecast to grow slower than the Australian market (5.3% per year).
High Growth Revenue: SIG's revenue (1.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SIG's Return on Equity is forecast to be low in 3 years time (8.9%).
Past Performance
How has Sigma Healthcare performed over the past 5 years?
-16.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SIG has a large one-off gain of A$26.5M impacting its July 31 2021 financial results.
Growing Profit Margin: SIG became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: SIG's earnings have declined by 16.9% per year over the past 5 years.
Accelerating Growth: SIG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: SIG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Healthcare industry (61.3%).
Return on Equity
High ROE: SIG's Return on Equity (12.6%) is considered low.
Financial Health
How is Sigma Healthcare's financial position?
Financial Position Analysis
Short Term Liabilities: SIG's short term assets (A$734.6M) exceed its short term liabilities (A$529.6M).
Long Term Liabilities: SIG's short term assets (A$734.6M) exceed its long term liabilities (A$182.9M).
Debt to Equity History and Analysis
Debt Level: SIG's debt to equity ratio (19.3%) is considered satisfactory.
Reducing Debt: SIG's debt to equity ratio has increased from 17.3% to 19.3% over the past 5 years.
Debt Coverage: SIG's debt is not well covered by operating cash flow (6.1%).
Interest Coverage: SIG's interest payments on its debt are well covered by EBIT (3.7x coverage).
Balance Sheet
Dividend
What is Sigma Healthcare current dividend yield, its reliability and sustainability?
3.45%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SIG's dividend (3.45%) is higher than the bottom 25% of dividend payers in the Australian market (2.27%).
High Dividend: SIG's dividend (3.45%) is low compared to the top 25% of dividend payers in the Australian market (5.31%).
Stability and Growth of Payments
Stable Dividend: SIG's dividend payments have been volatile in the past 10 years.
Growing Dividend: SIG's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (34.9%), SIG's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SIG's dividends in 3 years are forecast to be covered by earnings (77.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.6yrs
Average management tenure
CEO
Mark Hooper (62 yo)
11.33yrs
Tenure
AU$3,892,915
Compensation
Mr. Mark Robert Hooper, BBus (Acc), CPA, FFTP, MAICD, has been the Chief Executive Officer of Sigma Healthcare Limited since June 2010 and as its Managing Director since August 2010. Mr. Hooper served as t...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD2.92M) is above average for companies of similar size in the Australian market ($USD716.52K).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: SIG's management team is considered experienced (3.6 years average tenure).
Board Members
Experienced Board: SIG's board of directors are considered experienced (5.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Sigma Healthcare Limited's employee growth, exchange listings and data sources
Key Information
- Name: Sigma Healthcare Limited
- Ticker: SIG
- Exchange: ASX
- Founded: 1912
- Industry: Health Care Distributors
- Sector: Healthcare
- Market Cap: AU$563.540m
- Shares outstanding: 988.67m
- Website: https://www.sigmahealthcare.com.au
Location
- Sigma Healthcare Limited
- 3 Myer Place
- Rowville
- Victoria
- 3178
- Australia
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/22 07:05 |
| End of Day Share Price | 2021/10/22 00:00 |
| Earnings | 2021/07/31 |
| Annual Earnings | 2021/01/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.