Sigma HealthcareASX:SIG -1.07%59 Interest Coverage is 10.15 as of Dec. 2025, which is 57% above its 10-year median of 6.47. GuruFocus rates ASX:SIG with a GF Score™ of 59/100 and a GF Value™ of A$0.37 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 91 Medical Distribution companies, Sigma Healthcare ranks worse than 53.85% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Sigma Healthcare's
Operating Income
for the
six
months ended in Dec. 2025 was A$281 Mil. Sigma Healthcare's Interest Expense for the
six
months ended in Dec. 2025 was A$-28 Mil.
Sigma Healthcare's interest coverage for the quarter that ended in Dec. 2025 was 10.15.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Sigma Healthcare's Interest Coverage or its related term are showing as below:
ASX:SIG'
s Interest Coverage Range Over the Past 10 Years
Min: 0.04 Med: 6.47 Max: 12.47
Current: 6.01
ASX:SIG's Interest Coverage is ranked worse than 53.85% of 91
companies
in the Medical Distribution industry
Industry Median: 6.92
vs ASX:SIG: 6.01
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Sigma Healthcare Interest Coverage Related Terms
Sigma Healthcare Interest Coverage Historical Data
* Premium members only.
The historical data trend for Sigma Healthcare's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
ASX:SIG vs MCK, COR, CAH: Interest Coverage Comparison
For the Medical Distribution subindustry, Sigma Healthcare's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sigma Healthcare Interest Coverage vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Sigma Healthcare's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Sigma Healthcare's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Sigma Healthcare (ASX:SIG) has a Interest Coverage of 10.15 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Sigma Healthcare and its competitors. This is 57% above median its historical median of 6.47. Over the past decade, Sigma Healthcare's Interest Coverage has ranged from 0.04 to 12.47. According to the industry distribution chart, Sigma Healthcare ranks #49 out of 91 companies in the Medical Distribution industry, placing it in the top 53.8%.
Is Sigma Healthcare's Interest Coverage too high?
Sigma Healthcare's current Interest Coverage of 10.15 is 57% above median its 10-year median of 6.47. Over the past 10 years, this metric has ranged from a low of 0.04 to a high of 12.47. The Medical Distribution industry median Interest Coverage is 6.92. Sigma Healthcare's value of 10.15 is 46.7% above this industry median. Based on the distribution chart, Sigma Healthcare ranks #49 out of 91 companies in the Medical Distribution industry, which is below the industry midpoint. Overall, Sigma Healthcare has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sigma Healthcare's Interest Coverage compare to MCK and COR?
According to the Medical Distribution industry distribution chart, Sigma Healthcare ranks #49 out of 91 companies for Interest Coverage. This places Sigma Healthcare in the lower half of its industry. The industry median Interest Coverage is 6.92. Sigma Healthcare's value of 10.15 is 46.7% above this benchmark. Historically, Sigma Healthcare's own Interest Coverage has ranged from 0.04 to 12.47 over the past decade. While the company's 10-year median is 6.47 vs. the industry median of 6.92, Sigma Healthcare has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Medical Distribution company?
The median Interest Coverage among Medical Distribution companies is 6.92, based on 91 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sigma Healthcare's current Interest Coverage of 10.15 is 46.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Sigma Healthcare and its competitors. For the Medical Distribution industry, the median Interest Coverage is 6.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sigma Healthcare's current Interest Coverage is 10.15, which is 57% above median its own 10-year median of 6.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sigma Healthcare stock overvalued right now?
Based on GuruFocus' analysis, Sigma Healthcare (ASX:SIG) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.37, compared to a current price of A$2.77 — trading 648.6% above its estimated fair value. The current Interest Coverage is 10.15, which is 57% above median its 10-year median of 6.47 and 46.7% above the Medical Distribution industry median of 6.92. Sigma Healthcare's overall GF Score™ is 59/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Sigma Healthcare (ASX:SIG), the current Interest Coverage is 10.15 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sigma Healthcare (ASX:SIG) Overvalued in 2026?
Based on GuruFocus' analysis, Sigma Healthcare stock appears to be overvalued.
The current stock price of A$2.77 is trading 648.6% above its estimated GF Value™ of A$0.37.
GuruFocus considers Sigma Healthcare to be Significantly Overvalued.
Key valuation signals for ASX:SIG:
Interest Coverage: 10.15 (57% above median its 10-year median of 6.47)
GF Value™: A$0.37 vs. price of A$2.77 (648.6% above fair value)
Industry Position: 46.7% above the Medical Distribution median (#49 of 91)
No single metric tells the full story. See the ASX:SIG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sigma Healthcare is Australia's largest retail pharmacy franchisor, most notably owning the Chemist Warehouse brand, which it merged with in 2025. Sigma is also Australia's largest full-line wholesaler to franchised and independent pharmacies and distributes a broad range of pharmacy products, including prescription medicines, over-the-counter products, and front of store, or FOS, products, at low prices. The group also operates in New Zealand, Ireland, China, and Dubai, has a growing private label range, and offers third-party logistics services.
59GF Score
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