BUZZ-Australia's Sigma Healthcare's revenue surge doesn't quell overvaluation concerns, says Morningstar

Reuters

Mar 21, 2025

** Retail pharmacy franchisor Sigma Healthcare's SIG.AX shares are considered overvalued by Morningstar despite in-line earnings

** Full-year underlying EBIT growth more than doubled to A$68 mln was within co's forecast - Brokerage

** Adds revenue surged 46% to A$4.8 bln, mainly due to increased prescription volumes supplied to Chemist Warehouse $(CW)$

** However, gross margins in H2 shrank more than anticipated to 5.4% due to lower-margin prescription medicine sales - Morningstar

** Brokerage adds that SIG's market cap is similar to grocer Woolworths WOW.AX at over A$34 bln, suggesting a P/E ratio of 42 for fiscal 2029, including earnings from CW indicating overvaluation

** Morningstar maintains A$1.65/share fair value estimate

** Stock up 11.1% YTD

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk;))

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X: @thatstanishk;))</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SIG.AU","symbol_name":"SIGMA HEALTHCARE LTD","start_time":0,"source_url":"https://api.refinitiv.com/data/news/v1/stories/urn:newsml:reuters.com:20250320:nL4N3Q31OI:1","article_id":"2521497143","we_media_id":"1032215980","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2521497143","pubTimestamp":1742508211,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Reuters","introduction":"Reuters.com brings you the latest news from around the world, covering breaking news in markets, business, politics, entertainment and technology","home_visible":1,"id":"1032215980","head_image":"https://community-static.tradeup.com/news/4567337cbdf294b657b1fa87c5488b48"},"summary":"BUZZ-Australia's Sigma Healthcare's revenue surge doesn't quell overvaluation concerns, says Morningstar** Retail pharmacy franchisor Sigma Healthcare's SIG.AX shares are considered overvalued by Morningstar despite in-line earnings** Full-year underlying EBIT growth more than doubled to A$68 mln was within co's forecast - Brokerage** Adds revenue surged 46% to A$4.8 bln, mainly due to increased prescription volumes supplied to Chemist Warehouse ** However, gross margins in H2 shrank more than anticipated to 5.4% due to lower-margin prescription medicine sales - Morningstar** Brokerage adds that SIG's market cap is similar to grocer Woolworths WOW.AX at over A$34 bln, suggesting a P/E ratio of 42 for fiscal 2029, including earnings from CW indicating overvaluation** Morningstar maintains A$1.65/share fair value estimate** Stock up 11.1% YTD  ","collect":0,"end_time":0,"defaultTopTitle":"","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"SIG.AU":"SIGMA HEALTHCARE LTD","WOW.AU":"WOOLWORTHS GROUP LTD"},"translate_title":"晨星公司表示，澳大利亚Sigma Healthcare的收入激增并没有平息估值过高的担忧","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SIG.AU":0.9,"WOW.AU":0.9},"content_text":"BUZZ-Australia's Sigma Healthcare's revenue surge doesn't quell overvaluation concerns, says Morningstar** Retail pharmacy franchisor Sigma Healthcare's SIG.AX shares are considered overvalued by Morningstar despite in-line earnings** Full-year underlying EBIT growth more than doubled to A$68 mln was within co's forecast - Brokerage** Adds revenue surged 46% to A$4.8 bln, mainly due to increased prescription volumes supplied to Chemist Warehouse $(CW)$** However, gross margins in H2 shrank more than anticipated to 5.4% due to lower-margin prescription medicine sales - Morningstar** Brokerage adds that SIG's market cap is similar to grocer Woolworths WOW.AX at over A$34 bln, suggesting a P/E ratio of 42 for fiscal 2029, including earnings from CW indicating overvaluation** Morningstar maintains A$1.65/share fair value estimate** Stock up 11.1% YTD (Reporting by Kumar Tanishk in Bengaluru) ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk;))","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}