Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Sigma Healthcare Operating Margin % Related Terms
Sigma Healthcare Operating Margin % Historical Data
* Premium members only.
The historical data trend for Sigma Healthcare's Operating Margin % 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.
SIGGF vs MCK, COR, CAH: Operating Margin % Comparison
For the Medical Distribution subindustry, Sigma Healthcare's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Sigma Healthcare's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sigma Healthcare's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Sigma Healthcare's Operating Margin % for the fiscal year that ended in Jan. 2025 is calculated as
* 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 (SIGGF) has a Operating Margin % of 5.31% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Sigma Healthcare and its competitors. According to the industry distribution chart, Sigma Healthcare ranks #59 out of 119 companies in the Medical Distribution industry, placing it in the top 49.6%.
Is Sigma Healthcare's Operating Margin % too high?
Sigma Healthcare's current Operating Margin % is 5.31%. The Medical Distribution industry median Operating Margin % is 3.07. Sigma Healthcare's value of 5.31% is 73% above this industry median. Based on the distribution chart, Sigma Healthcare ranks #59 out of 119 companies in the Medical Distribution industry, which is above the industry midpoint. Overall, Sigma Healthcare has a GF Score™ of 59/100, reflecting its overall financial health beyond just this single metric.
How does Sigma Healthcare's Operating Margin % compare to MCK and COR?
According to the Medical Distribution industry distribution chart, Sigma Healthcare ranks #59 out of 119 companies for Operating Margin %. This puts Sigma Healthcare in the upper half of its industry. The industry median Operating Margin % is 3.07. Sigma Healthcare's value of 5.31% is 73% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Medical Distribution company?
The median Operating Margin % among Medical Distribution companies is 3.07, based on 119 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sigma Healthcare's current Operating Margin % of 5.31% is 73% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Sigma Healthcare and its competitors. For the Medical Distribution industry, the median Operating Margin % is 3.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sigma Healthcare's current Operating Margin % is 5.31%. 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?
Sigma Healthcare (SIGGF) has a current Operating Margin % of 5.31%. The stock's GF Value™ is $0.31, compared to a current price of $2.35 — trading 657.4% above its estimated fair value. The current Operating Margin % is 5.31% and 73% above the Medical Distribution industry median of 3.07. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Sigma Healthcare (SIGGF), the current Operating Margin % is 5.31% 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 (SIGGF) Overvalued in 2026?
Based on GuruFocus' analysis, Sigma Healthcare stock appears to be overvalued.
The current stock price of $2.35 is trading 657.4% above its estimated GF Value™ of $0.31.
Key valuation signals for SIGGF:
Operating Margin %: 5.31%
GF Value™: $0.31 vs. price of $2.35 (657.4% above fair value)
Industry Position: 73% above the Medical Distribution median (#59 of 119)
No single metric tells the full story. See the SIGGF 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
Get the complete analysis for SIGGF
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SIGGF has been successfully added to your 
