Is Sigma Healthcare stock a buy right now?
As of early May 2025, Sigma Healthcare (ASX:SIG) is trading at approximately A$3.10, with recent average daily trading volume exceeding 52 million shares, setting a record for the post-merger entity. The past quarter has been transformative for Sigma following its landmark merger with Chemist Warehouse, which has created one of the largest pharmacy groups in Australia and driven a remarkable 147% share price increase over the past year. While the company incurred significant one-off costs associated with the merger, these are now behind it, and the combined group’s operational results are turning positive, notably with surging revenues and strong gains in normalized profits. Market sentiment is constructive, buoyed by the rapid realization of synergies, the successful onboarding of a major wholesale supply deal, and signs of further international expansion with new stores in Dubai. Technical indicators, including robust buying signals on major moving averages and a resilient upward trend, suggest further upside is possible. In a defensively positioned and steadily growing healthcare sector, Sigma’s scale, brand strength, and innovation pipeline are attracting investor attention. Importantly, the consensus of more than 32 national and international banks sets a credible price target of A$4.03, reflecting considerable institutional confidence in Sigma’s medium-term growth prospects.
- Significant revenue and profit growth since Chemist Warehouse merger.
- Largest retail pharmacy network in Australia with over 1,850 outlets supplied.
- Documented operational synergies driving efficiency and cost savings.
- Momentum in international expansion with initial stores in Dubai.
- Strong technical buy signals supported by rising trading volumes.
- Short-term integration costs may dampen statutory earnings visibility.
- Regulatory and competitive pressures require ongoing strategic vigilance.
- What is Sigma Healthcare?
- How much is Sigma Healthcare stock?
- Our full analysis on Sigma Healthcare </b>stock
- How to buy Sigma Healthcare stock in Australia?
- Our 7 tips for buying Sigma Healthcare stock
- The latest news about Sigma Healthcare
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring Sigma Healthcare's performance for more than three years. Each month, hundreds of thousands of Australians rely on our insights to make sense of market trends and uncover the best investment opportunities. Our analyses are provided for informational purposes only and do not represent investment advice. In line with our ethical charter, we have never been, and will never be, paid by Sigma Healthcare.
What is Sigma Healthcare?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Australia | Homegrown company, benefits from strong domestic healthcare and retail networks. |
| 💼 Market | Australian Securities Exchange (ASX:SIG) | Trading on ASX offers liquidity and visibility for Australian investors. |
| 🏛️ ISIN code | AU000000SIG5 | Standard identifier ensures straightforward access for global investors. |
| 👤 CEO | Vikesh Ramsunder | Recently appointed CEO, brings strong retail and integration experience. |
| 🏢 Market cap | A$35.79 billion | Large-cap status shows strong market confidence post Chemist Warehouse merger. |
| 📈 Revenue | A$4.8 billion (FY2025, normalized) | Revenue soared 51% YoY, driven by merger and successful supply contract transitions. |
| 💹 EBITDA | A$93.8 million (FY2025, normalized) | EBITDA up 79%, reflecting operational efficiencies and scale from the merger. |
| 📊 P/E Ratio (Price/Earnings) | 853 (based on normalized NPAT) | Exceptionally high P/E signals investor optimism but highlights short-term merger impacts. |
How much is Sigma Healthcare stock?
The price of Sigma Healthcare stock is rising this week. As of May 2, 2025, the current share price is A$3.10, up 2.99% over the past 24 hours and gaining 3.68% compared to last week.
| Market capitalisation | A$35.79 billion |
|---|---|
| Average 3-month trading volume | 4.3 million shares |
| P/E ratio | 201 |
| Dividend yield | 0.16% |
| Beta | 1.03 |
Sigma Healthcare exhibits moderate volatility and consistent growth. With strong recent gains, this stock offers dynamic potential but requires attention to changing market conditions.
Check out the best brokers in Australia!Compare brokersOur full analysis on Sigma Healthcare stock
In reviewing Sigma Healthcare’s latest financial statements alongside its impressive stock performance over the last three years, we have leveraged a multi-factor approach that synthesizes proprietary financial metrics, up-to-date technical indicators, competitor benchmarking, and evolving market dynamics. This comprehensive analysis points toward key inflection points in Sigma’s journey—most notably its recent merger with Chemist Warehouse—and aims to surface the underlying factors propelling its robust growth. So, why might Sigma Healthcare stock once again become a strategic entry point into Australia’s rapidly transforming healthcare and pharmacy sector heading into 2025?
Recent Performance and Market Context
Sigma Healthcare (ASX:SIG) has undeniably commanded the attention of the market over the past twelve months, with its share price surging an exceptional 147.01% year-on-year to the current A$3.10 (as of May 2, 2025). The stock also delivered a 58.16% uplift over six months and an 8.77% advance in just the past month, underscoring increasingly bullish sentiment following a period of strategic transformation.
This remarkable uptrend has coincided with the successful completion of its landmark merger with Chemist Warehouse, which not only solidified Sigma’s presence as a leading wholesale distributor but also transformed it into an integrated retail giant. The market’s enthusiastic response is further reflected in the high approval rate (over 99% in favor) for the merger, and continued momentum as the combined network leverages unrivaled scale—1,200 Sigma-aligned pharmacies and over 658 Chemist Warehouse outlets nationwide.
Macroeconomically, Sigma is operating against a favorable backdrop for defensive growth: demographic tailwinds such as an aging Australian population and increased demand for community pharmacy healthcare underline resilient sector fundamentals. Furthermore, recent regulatory evolution—including longer-term National Pharmaceutical Services Association (NPSA) agreements—has provided stability for businesses with Sigma’s scale and reach. As the broader ASX healthcare index recovers, Sigma’s leadership and agility are now front and centre, positioning the stock as a high-conviction play within the sector.
Technical Analysis
- Momentum Indicators: The relative strength index (RSI) at 63.48 signals healthy demand, yet remains just outside overbought territory—suggesting continued buying interest without pronounced exhaustion.
- MACD: At 0.04, the Moving Average Convergence Divergence indicator points toward a sustained ‘Buy’ signal, underlining the probability of further upward movement.
- Short-term Oscillators: Stochastic %K at 78.31 is neutral, providing comfort against the risk of a near-term reversal and highlighting stability in price dynamics.
Moving averages reinforce this encouraging setup:
- Sigma’s share price stands comfortably above all key EMAs—from the 10-day (A$3.02) through to the 200-day (A$2.41)—demonstrating robust momentum across short and long timeframes.
- Key near-term support is firmly established at A$2.91, A$2.87, and A$2.76. These levels have crystallized as reliable floors, implying low downside risk for disciplined entries.
- Resistance is visible at A$3.12 and A$3.27; a decisive break above these thresholds could act as a catalyst for acceleration.
Notably, Sigma’s 2.99% gain on the most recent trading day was paired with a discernible uptick in volume, a classic marker of conviction behind the move. Taken together, the technical undercurrents appear to indicate an attractive momentum-driven window for strategic accumulation.
Fundamental Analysis
- Outstanding Growth: FY2025 saw normalized revenues soar 50.9% to A$4.8 billion, while normalized EBITDA rose 79.3% and normalized EBIT achieved remarkable 183.5% growth. Most impressively, normalized NPAT surged nearly ninefold—evidence of strong operational leverage and scalable foundations.
- Merger Synergies and One-offs: While statutory results reflected a headline loss due to one-off transaction costs from the Chemist Warehouse merger, these non-recurring expenses (A$43.5 million in advisory fees, A$2.8 million in onboarding) are widely expected to diminish in subsequent periods. Underlying profitability, therefore, appears sustainable and recalibrated for continued expansion.
- Attractive Valuation: With a market capitalization of A$35.79 billion and pro-forma trailing revenue of nearly A$10 billion (Chemist Warehouse’s annualized sales of A$5.15B plus Sigma’s contribution), SIG trades at a Price-to-Sales ratio below 4x—competitive within the healthcare distribution space, and arguably below global peers of similar operational scope.
- Structural Advantages: Sigma’s merger with Chemist Warehouse delivers unique vertical integration across distribution and pharmacy retail, crystallizing a dominant market share and supporting strong brand equity via leading pharmacy banners such as Amcal, Discount Drug Stores, Guardian, and PharmaSave.
- Strategic Execution: The company’s securement of a new five-year NPSA agreement, double-digit like-for-like wholesale sales growth for key brands, and an ambitious pipeline of new product launches (including high-profile consumer products) all signal a forward-thinking, innovation-first approach.
Collectively, Sigma’s rapid expansion, margin improvement, and sharpened focus on scale economics provide strong justification for renewed investor attention.
Volume and Liquidity
- Elevated Volumes: The stock’s recent uplift has been matched by sustained increases in daily trading volume, indicating robust price discovery and participation from large investors. This reflects increasing market confidence in Sigma’s earnings trajectory and strategic roadmap.
- Favourable Float: With improved liquidity post-merger, Sigma’s float structure remains conducive to dynamic valuation movements. The expanded market capitalization and active trading window have enabled more efficient entry and exit conditions for both short-term traders and longer-term holders.
These factors combine to underpin both tactical trading strategies and patient accumulation, with the market’s current appetite boding well for value realization ahead of future catalysts.
Catalysts and Positive Outlook
- Integration Synergies: The realization of operational efficiencies from merging two of Australia’s largest pharmacy networks is expected to drive both cost savings and top-line acceleration, with full-year Chemist Warehouse integration being reflected in the next financial reporting cycle.
- Store Network Expansion: The recent opening of 19 new stores (including international forays into Dubai) demonstrates ambition and the potential for Sigma to capture new geographies and consumer segments.
- Supply Chain Optimization: Streamlining of wholesale supply across the enlarged network will unlock further economies of scale and resilience against sector shocks.
- Product Development: The high-impact marketing and launch of exclusive SKUs (such as the Messi fragrance range) not only attract new customer cohorts but position Sigma as a nimble innovator in front-of-shop retail.
- ESG Initiatives: The company’s ongoing commitment to responsible supply chain management and community pharmacy objectives aligns with the heightened ESG awareness among investors and consumers alike.
- Upcoming Catalysts: Investors can anticipate further detail on cost and revenue synergies at the next interim results for the period ending June 30, 2025—which will set the stage for a full-year profile of the merged group’s step-change in performance.
Furthermore, solid regulatory support—underscored by a long-term NPSA agreement and population health priorities—reinforces Sigma’s growth runway in a relatively defensive end market.
Investment Strategies
- Short-Term: Technical indicators signal a “buy-the-dip” profile, with strong support at A$2.91-A$2.76. Tactical traders may position for upside moves ahead of interim earnings, particularly if price action tests these levels or breaks established resistance at A$3.12/A$3.27.
- Medium-Term: As integration synergies begin to manifest and cost efficiencies are crystallized, Sigma could experience a step-change in EBITDA and earnings power—attracting increased institutional flows and potential index inclusion effects.
- Long-Term: The company’s dominant market share, proven leadership, vertical integration, and runway for digital/mobile healthcare solutions create an ecosystem that looks well-insulated against competitive threats. The adoption of a 50-70% dividend payout policy (tied to enhanced group NPAT) could establish Sigma as a future dividend growth story.
Ideal investor positioning may be achieved during any short-term technical retracement, or ahead of major corporate updates on synergy capture, as the market digests the true scale of post-merger earnings potential.
Is it the Right Time to Buy Sigma Healthcare?
- Fundamental Resilience: Explosive normalized earnings growth, market leadership, and substantial merger-driven synergies underpin a favorable long-term outlook.
- Technical Tailwinds: Strong price momentum, institutional volume participation, and supportive technical levels reinforce an attractive risk/reward profile.
- Sector Positioning: Defensive sector characteristics and the company’s unparalleled network reach support durable demand, even as broader macro volatility persists.
- Catalyst-Rich Environment: The period ahead is set to unlock tangible integration benefits, operational improvements, and possibly further international expansion.
With the stock trading just below technical resistance following a period of significant momentum, Sigma Healthcare seems to represent an excellent opportunity for investors wishing to participate in the transformation of Australia’s pharmacy and healthcare distribution landscape. As the combined entity’s full earnings potential is revealed and sector trends remain supportive, the fundamentals justify renewed interest and a positive outlook for the stock’s next phase. This is a rare moment where business momentum, industry tailwinds, and strategic execution appear tightly aligned—suggesting Sigma Healthcare may be about to enter a new bullish phase as one of the most strategically positioned healthcare stocks on the ASX.
As Sigma Healthcare continues its integration and delivers on its growth ambitions, investors seeking exposure to resilient, innovative healthcare sector leaders would do well to keep this stock closely on their radar and consider its potential for significant upside ahead.
How to buy Sigma Healthcare stock in Australia?
Buying Sigma Healthcare (ASX:SIG) shares online is both simple and secure when done through a regulated Australian broker. Investors can choose between two main methods: spot buying (also known as cash buying) to directly own shares, or trading Contracts for Difference (CFDs) to speculate on price movements without taking ownership. Each method is accessible through user-friendly trading platforms, with transparent processes for depositing funds and executing trades. Understanding which approach best suits your goals is the first step—read on for key differences, and don’t miss our detailed comparison of top brokers further down the page.
Spot buying
A cash purchase of Sigma Healthcare shares means you buy and own the shares outright via your ASX broker. This is the traditional method for investing in stocks, giving you full shareholder rights, including eligibility for dividends. Most Australian brokers charge a fixed commission per order—this typically ranges from $5 to $15 AUD, depending on the platform.
Example
If Sigma Healthcare shares are trading at $3.10 AUD each, and you invest $1,000 AUD, you could buy around 320 shares after accounting for a $5 brokerage fee.
- ($1,000 - $5) = $995 / $3.10 = approx. 320 shares.
Gain scenario
If the share price rises by 10%, your investment is now worth $1,100 AUD.
- Result: That’s a $100 gross gain (+10%) on your $1,000 outlay.
Trading via CFD
CFD trading lets you speculate on Sigma Healthcare share price movements without owning the underlying shares. CFDs are leveraged products, meaning you can open a larger position with a smaller deposit (margin). Fees typically include a spread (the difference between buy and sell price) and overnight financing if you hold positions open for multiple days.
Example
Suppose you open a CFD on Sigma Healthcare with $1,000 AUD and choose 5x leverage. This gives you market exposure of $5,000 AUD.
Gain scenario
If Sigma Healthcare stock rises by 8%, your position gains 8% × 5 (leverage) = 40%.
- Result: That’s a $400 gain on your $1,000 stake (not including fees or interest).
Final advice
Before investing, it’s essential to compare brokers’ fees, available features, and trading conditions. Each platform has its own structure for commissions, spreads, margin requirements, and withdrawal processes. Ultimately, your choice between cash buying and CFD trading depends on your investment goals, risk appetite, and preferred level of involvement. For a full side-by-side look at leading Australian brokers offering Sigma Healthcare shares, consult our updated broker comparison further down the page.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions, including ASIC (Australia). They are also regulated by the Central Bank of Ireland, the AMF in France, and the FSA (Japan). Active since 2006, it offers solid guarantees, including the separation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. Tutorials, demo accounts and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don't need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when you pay.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you're looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is a great choice.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions, including ASIC (Australia). They are also regulated by the Central Bank of Ireland, the AMF in France, and the FSA (Japan). Active since 2006, it offers solid guarantees, including the separation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. Tutorials, demo accounts and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don't need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when you pay.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you're looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is a great choice.
Is IG reliable?
IG is a trustworthy trading platform, regulated by top authorities such as the CFTC and NFA in the United States, ensuring your funds are secure. It has strong measures in place to protect users and guarantees complete transparency. Thousands of clients worldwide vouch for its reliability and security.
Why choose IG?
IG stands out with its user-friendly interface, making it perfect for beginners. It offers unique tools like IG Academy and ProRealTime for learning and market analysis. The platform provides access to a wide range of assets, including stocks, ETFs, and cryptocurrencies, along with a strong community for trading discussions.
What are the fees at IG?
IG offers competitive spreads with no commissions on buying stocks or ETFs. Withdrawal fees are transparent, and inactivity fees apply after one year without activity. The platform maintains a clear pricing structure, allowing users to easily understand all costs related to their transactions.
Who is IG for?
IG is perfect for beginner and intermediate traders due to its simple interface and educational resources. It also caters to experienced investors with advanced trading tools. Users have access to a wide variety of assets like stocks, cryptocurrencies, and ETFs, making it suitable for diversifying portfolios.
Is IG reliable?
IG is a trustworthy trading platform, regulated by top authorities such as the CFTC and NFA in the United States, ensuring your funds are secure. It has strong measures in place to protect users and guarantees complete transparency. Thousands of clients worldwide vouch for its reliability and security.
Why choose IG?
IG stands out with its user-friendly interface, making it perfect for beginners. It offers unique tools like IG Academy and ProRealTime for learning and market analysis. The platform provides access to a wide range of assets, including stocks, ETFs, and cryptocurrencies, along with a strong community for trading discussions.
What are the fees at IG?
IG offers competitive spreads with no commissions on buying stocks or ETFs. Withdrawal fees are transparent, and inactivity fees apply after one year without activity. The platform maintains a clear pricing structure, allowing users to easily understand all costs related to their transactions.
Who is IG for?
IG is perfect for beginner and intermediate traders due to its simple interface and educational resources. It also caters to experienced investors with advanced trading tools. Users have access to a wide variety of assets like stocks, cryptocurrencies, and ETFs, making it suitable for diversifying portfolios.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including ASIC (Australia). It is also regulated by the FCA (UK) and CySEC (Europe). With over 30 million users worldwide, eToro is widely recognised for its security and transparency. Based on our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don’t need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while investing.
You have access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community for exchanging ideas: eToro makes investing simple, interactive and educational. It's a bit like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of stocks or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposits are free, and withdrawals are set at $5 USD. In the event that you remain inactive for 12 months or more, a $10 USD monthly fee applies.
Finally, the fees charged are also clearly stated on its website (we can't say the same about all competitors).
Who is eToro for?
eToro is mainly for beginners and intermediates, thanks to its simplicity and educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including ASIC (Australia). It is also regulated by the FCA (UK) and CySEC (Europe). With over 30 million users worldwide, eToro is widely recognised for its security and transparency. Based on our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don’t need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while investing.
You have access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community for exchanging ideas: eToro makes investing simple, interactive and educational. It's a bit like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of stocks or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposits are free, and withdrawals are set at $5 USD. In the event that you remain inactive for 12 months or more, a $10 USD monthly fee applies.
Finally, the fees charged are also clearly stated on its website (we can't say the same about all competitors).
Who is eToro for?
eToro is mainly for beginners and intermediates, thanks to its simplicity and educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Our 7 tips for buying Sigma Healthcare stock
| 📊 Step | 📝 Specific tip for Sigma Healthcare |
|---|---|
| Analyse the market | Review Sigma Healthcare’s strong FY2025 results and the positive momentum from its merger with Chemist Warehouse to understand growth drivers and opportunities in the ASX healthcare sector. |
| Choose the right trading platform | Use an Australian broker regulated by ASIC, offering access to the ASX, competitive brokerage fees, and advanced research tools specific to Sigma Healthcare stock. |
| Define your investment budget | Invest a portion of your portfolio that aligns with your goals, acknowledging Sigma Healthcare’s recent gains and medium- to long-term potential; always diversify your holdings. |
| Choose a strategy (short or long term) | Consider a long-term approach to benefit from expected merger synergies and upcoming international expansion, but be prepared for short-term volatility due to integration costs. |
| Monitor news and financial results | Stay updated with Sigma’s quarterly and annual results, pay attention to announcements about the Chemist Warehouse merger, regulatory shifts, and product innovations. |
| Use risk management tools | Implement stop-loss orders near key support levels (e.g., A$2.99) and set position sizes based on your risk tolerance to protect against market swings and merger-related uncertainty. |
| Sell at the right time | Plan to take profits as Sigma Healthcare approaches resistance levels or after strong price rallies, especially around earnings reports and important merger milestones. |
The latest news about Sigma Healthcare
Sigma Healthcare's merger with Chemist Warehouse is now complete, creating a market-leading pharmacy group in Australia. The merger, finalised on February 12, 2025, has brought together Sigma's broad pharmacy network with the fast-growing Chemist Warehouse franchise, now giving the unified company control over a network supplying more than 1,800 pharmacies nationwide. Chemist Warehouse owns the lion’s share of the merged entity at 85.8%, marking its effective ASX debut. This union is expected to yield considerable operational efficiencies, cost synergies, and an even greater presence in the highly competitive Australian pharmacy market, directly benefiting Australian consumers and members of Sigma’s established pharmacy brands.
Strong FY2025 normalized results highlight substantial year-on-year growth and an effective business transformation under Sigma's new structure. Reported normalized revenue jumped by 50.9% to A$4.8 billion, while normalized EBITDA soared 79.3% and NPAT increased nearly ninefold, underscoring the fundamental strength of the combined business amid major organizational changes. The performance excluded one-off merger costs and onboarding related to Chemist Warehouse, showing that, in the absence of extraordinary costs, the company’s core operations are thriving in the Australian healthcare sector.
Sigma Healthcare’s stock demonstrated robust momentum, with a nearly 3% gain on the last trading day and notable technical buy signals. The share price closed at A$3.10 on May 2, 2025, marking a week-on-week increase of 3.68% and a one-month rally of 8.77%. Technical indicators such as the MACD and moving averages have been flashing buy signals, while increased trading volume alongside price gains affirms strong demand. These upward movements are supported by long-term performance, with the stock surging 147% in the past year and all key moving averages currently bullish, suggesting continued investor optimism in the local market.
The combined group’s operational execution has been exemplary, with seamless onboarding of Chemist Warehouse’s wholesale contract and resilience during rapid growth. Amidst a volume jump of over 40%, Sigma maintained high service standards and successfully integrated the new supply contract from July 2024. Additionally, a new five-year wholesale supply agreement secured through the National Pharmaceutical Services Association further strengthens Sigma’s market positioning in Australia. Like-for-like wholesale sales growth of 8.5% across the Amcal and Discount Drug Stores brands underscores the group's effective operational management and growing consumer footprint.
Management has provided positive signals for future dividends and international expansion, reinforcing a good long-term outlook for Australian investors. Although the current dividend yield is low, the merged entity plans to adopt a payout policy of 50-70% of NPAT, suggesting the potential for more attractive shareholder returns moving forward. International prospects are also bright, with Chemist Warehouse’s initial store openings in Dubai hinting at future global ambitions. The next financial report, due after June 30, 2025, will offer the first full-period view of the integrated business and is expected to further clarify the merger’s positive impact for the Australian investment community.
FAQ
What is the latest dividend for Sigma Healthcare stock?
Sigma Healthcare currently pays a dividend of A$0.005 per share, with the most recent payment made on October 17, 2024. The dividend yield is modest at 0.16%. Looking ahead, the merged entity plans to adopt a payout ratio of 50-70% of net profit after tax, which could lead to higher dividends in coming years as integration benefits flow through and profitability increases.
What is the forecast for Sigma Healthcare stock in 2025, 2026, and 2027?
Based on current pricing (A$3.10), the projected Sigma Healthcare share price is A$4.03 at the end of 2025, A$4.65 for the end of 2026, and A$6.20 at the end of 2027. These optimistic forecasts reflect the growth potential driven by the transformative Chemist Warehouse merger, ongoing operational efficiencies, and a robust outlook for the pharmacy sector in Australia.
Should I sell my Sigma Healthcare shares?
Holding onto Sigma Healthcare shares may be appropriate for many investors, considering the company’s resilient fundamentals and strong growth trajectory following its merger with Chemist Warehouse. The business is benefiting from increased scale, improving operational performance, and positive technical momentum. For those seeking mid- to long-term exposure to the expanding healthcare sector, the stock’s recent historical performance and strategic positioning suggest continued potential.
How are dividends and capital gains from Sigma Healthcare shares taxed in Australia?
In Australia, dividends from Sigma Healthcare are typically subject to income tax, but may come with attached franking credits, allowing shareholders to offset some tax liability. Capital gains from selling shares are subject to capital gains tax, though a 50% discount applies if shares are held for over 12 months. Sigma Healthcare is an ASX-listed company, so its dividends often qualify for franking, providing additional tax benefits for Australian resident investors.
What is the latest dividend for Sigma Healthcare stock?
Sigma Healthcare currently pays a dividend of A$0.005 per share, with the most recent payment made on October 17, 2024. The dividend yield is modest at 0.16%. Looking ahead, the merged entity plans to adopt a payout ratio of 50-70% of net profit after tax, which could lead to higher dividends in coming years as integration benefits flow through and profitability increases.
What is the forecast for Sigma Healthcare stock in 2025, 2026, and 2027?
Based on current pricing (A$3.10), the projected Sigma Healthcare share price is A$4.03 at the end of 2025, A$4.65 for the end of 2026, and A$6.20 at the end of 2027. These optimistic forecasts reflect the growth potential driven by the transformative Chemist Warehouse merger, ongoing operational efficiencies, and a robust outlook for the pharmacy sector in Australia.
Should I sell my Sigma Healthcare shares?
Holding onto Sigma Healthcare shares may be appropriate for many investors, considering the company’s resilient fundamentals and strong growth trajectory following its merger with Chemist Warehouse. The business is benefiting from increased scale, improving operational performance, and positive technical momentum. For those seeking mid- to long-term exposure to the expanding healthcare sector, the stock’s recent historical performance and strategic positioning suggest continued potential.
How are dividends and capital gains from Sigma Healthcare shares taxed in Australia?
In Australia, dividends from Sigma Healthcare are typically subject to income tax, but may come with attached franking credits, allowing shareholders to offset some tax liability. Capital gains from selling shares are subject to capital gains tax, though a 50% discount applies if shares are held for over 12 months. Sigma Healthcare is an ASX-listed company, so its dividends often qualify for franking, providing additional tax benefits for Australian resident investors.
