Sigma Healthcare Ltd

SIG: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$7.44	Lbdcv	Dbnfmqkh

Sigma Healthcare Earnings: Focusing on Cost Efficiencies and Private Label

Shane Ponraj

Mar 22, 2024

We maintain our AUD 0.78 per share fair value estimate for no-moat Sigma Healthcare after its weak fiscal 2024 result. Underlying EBIT fell by nearly two thirds to AUD 23 million because of fewer covid test sales, cost inflation, and intense competition, broadly in line with our expectations. But we expect significantly better earnings in coming years due to improved operating leverage and a continued focus on cost efficiencies and private label products.

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