Sigma’s strategy is to gain share by rolling out franchise stores. Along with franchise fees, franchisees secure a route for distribution volumes. Sigma’s key brands are Chemist Warehouse, Amcal and Discount Drug Stores.
Sigma’s superior scale in pharmacy distribution is hard to replicate, and as a result, we think its relative cost advantages should persist.
The significant merger with Chemist Warehouse poses both execution and integration risk over the long term in achieving expected cost synergies.
Metric | SIG | CAH | MCK |
|---|---|---|---|
Price/Earnings (Normalized) | 44.51 | 23.24 | 25.91 |
Price/Book Value | 6.65 | — | — |
Price/Sales | 3.07 | 0.25 | 0.31 |
Price/Cash Flow | 57.85 | 17.95 | 19.14 |
Metric | SIG | CAH | MCK |
|---|---|---|---|
Quick Ratio | 1.04 | 0.43 | 0.50 |
Current Ratio | 1.67 | 0.88 | 0.90 |
Interest Coverage | 17.85 | 7.64 | 22.07 |
Metric | SIG | CAH | MCK |
|---|---|---|---|
Return on Assets (Normalized) | 8.47% | 4.78% | 5.95% |
Return on Equity (Normalized) | 15.09% | — | — |
Return on Invested Capital (Normalized) | 11.18% | 48.63% | 56.87% |
1-Day Chart | Name | Price | Morningstar Rating for Stocks | Capital Allocation | Economic Moat | Market Cap |
|---|---|---|---|---|---|---|
| McKesson Corp MCK | LOCK|?gNF&p | LOCK|<!RV% | $124B | |||
| Cencora Inc COR | LOCK|%>qqNH | LOCK|x<#!L | $67B | |||
| Cardinal Health Inc CAH | LOCK|T@#hx@< | LOCK|?&J?? | $64B | |||
| Sigma Healthcare Ltd SIGGF | — | LOCK|Hc%> | $23B | |||
| Henry Schein Inc HSIC | LOCK|C$n?S@ | LOCK|dn@Q! | $10B | |||
| Shanghai Pharmaceuticals Holding Co Ltd ADR SHPMY | — | LOCK|%Y | $8B | |||
| Sinopharm Group Co Ltd SHTDF | — | LOCK|?%H | $7B | |||
| Sinopharm Group Co Ltd ADR SHTDY | — | LOCK|T> | $7B | |||
| Galenica Ltd GALNF | — | LOCK|bp | $5B | |||
| Medipal Holdings Corp MEPDF | — | LOCK|f&H | $4B |
United States