Sigma HealthcareASX:SIG +2.20%59 Return-on-Tangible-Equity is 73.03% as of Dec. 2025, which is 1326% above its 10-year median of 5.12. 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 111 Medical Distribution companies, Sigma Healthcare ranks better than 84.68% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Sigma Healthcare's annualized net income for the quarter that ended in Dec. 2025 was A$760 Mil. Sigma Healthcare's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$465 Mil. Therefore, Sigma Healthcare's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 163.36%.
The historical rank and industry rank for Sigma Healthcare's Return-on-Tangible-Equity or its related term are showing as below:
ASX:SIG'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -4.25 Med: 5.12 Max: 77.9
Current: 77.9
During the past 13 years, Sigma Healthcare's highest Return-on-Tangible-Equity was 77.90%. The lowest was -4.25%. And the median was 5.12%.
ASX:SIG's Return-on-Tangible-Equity is ranked better than 84.68% of 111
companies
in the Medical Distribution industry
Industry Median: 8.81
vs ASX:SIG: 77.90
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Sigma Healthcare Return-on-Tangible-Equity Related Terms
Sigma Healthcare Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Sigma Healthcare's Return-on-Tangible-Equity 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.
ASX:SIG vs MCK, CAH, COR: Return-on-Tangible-Equity Comparison
For the Medical Distribution subindustry, Sigma Healthcare's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Sigma Healthcare's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sigma Healthcare's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 73.03% mean?
Sigma Healthcare (ASX:SIG) has a Return-on-Tangible-Equity of 73.03% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sigma Healthcare and its competitors. This is 1326% above median its historical median of 5.12. According to the industry distribution chart, Sigma Healthcare ranks #17 out of 111 companies in the Medical Distribution industry, placing it in the top 15.3%.
Is Sigma Healthcare's Return-on-Tangible-Equity too high?
Sigma Healthcare's current Return-on-Tangible-Equity of 73.03% is 1326% above median its 10-year median of 5.12. The Medical Distribution industry median Return-on-Tangible-Equity is 8.81. Sigma Healthcare's value of 73.03% is 728.9% above this industry median. Based on the distribution chart, Sigma Healthcare ranks #17 out of 111 companies in the Medical Distribution industry, which is in the top quartile — a strong position relative to peers. 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 Return-on-Tangible-Equity compare to MCK and CAH?
According to the Medical Distribution industry distribution chart, Sigma Healthcare ranks #17 out of 111 companies for Return-on-Tangible-Equity. This places Sigma Healthcare in the top 15% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.81. Sigma Healthcare's value of 73.03% is 728.9% above this benchmark. While the company's 10-year median is 5.12 vs. the industry median of 8.81, 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 Return-on-Tangible-Equity for a Medical Distribution company?
The median Return-on-Tangible-Equity among Medical Distribution companies is 8.81, based on 111 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sigma Healthcare's current Return-on-Tangible-Equity of 73.03% is 728.9% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sigma Healthcare and its competitors. For the Medical Distribution industry, the median Return-on-Tangible-Equity is 8.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sigma Healthcare's current Return-on-Tangible-Equity is 73.03%, which is 1326% above median its own 10-year median of 5.12. 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$2.79 — trading 654.1% above its estimated fair value. The current Return-on-Tangible-Equity is 73.03%, which is 1326% above median its 10-year median of 5.12 and 728.9% above the Medical Distribution industry median of 8.81. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Sigma Healthcare (ASX:SIG), the current Return-on-Tangible-Equity is 73.03% 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$2.79 is trading 654.1% above its estimated GF Value™ of A$0.37.
GuruFocus considers Sigma Healthcare to be Significantly Overvalued.
Key valuation signals for ASX:SIG:
Return-on-Tangible-Equity: 73.03% (1326% above median its 10-year median of 5.12)
GF Value™: A$0.37 vs. price of A$2.79 (654.1% above fair value)
Industry Position: 728.9% above the Medical Distribution median (#17 of 111)
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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