Latest news with #SigmaHealthcare
Herald Sun
3 days ago
- Business
- Herald Sun
Stock Tips: Never mind the alpha, what's the Sigma play this week?
It's no easy gig analysing share prices and company performance but somebody's got to do it. Every week two experts from our Share Tips columnist pool give us their recommendations. Sean Conlan – Leyland Private Asset Management BUY Sigma Healthcare (ASX:SIG) We believe SIG will grow into its current PE multiple by refurbishing existing Chemist Warehouse stores, opening 20 new stores per annum across Australia and by exporting the brand offshore. Judo Capital Holdings (ASX:JDO) Improved funding costs give us more comfort on the near-term margin outlook. With forecast a~34% earnings CAGR over the next three years, and trading at only 12x FY26 P/E we think the valuation is attractive. HOLD Treasury Wine Estates (ASX:TWE) TWE has trimmed guidance for FY25 earnings growth, citing lower-than-expected wine sales in the US where economic uncertainty is hurting consumer demand. Austal (ASX:ASB) We remain positive on the long-term outlook for ASB, considering the macro tailwinds and attractive growth profile, however, we are conscious of its current valuation. SELL Bank of Queensland (ASX:BOQ) While BOQ's simplification strategy and pivot towards business is bearing fruit, we think it will continue to struggle to make returns above the cost of capital over the medium term. Lovisa Holdings (ASX:LOV) We are concerned about the quality of stores recently opened and think that higher-than-normal rates of discounting may be driving strong LFL sales. Chris Watt – Bell Potter Securities BUY CAR Group (CAR) Resilient RV sales, solid international operations and strong earnings momentum support continued growth. The company continues to benefit from a scalable global expansion strategy that allows it to replicate its model across international markets. Treasury Wine Estates (ASX:TWE) While the US premium wine market is weak, core luxury brands remain strong. DAOU Vineyards synergies and broader international opportunities provide upside despite recent downgrades. HOLD Technology One (ASX:TNE) A strong first-half result confirms the business is executing well, with growing recurring revenue and cash flow. However, recent share price gains limit short-term upside. James Hardie (ASX:JHX) Strategy execution in US new construction is on track, particularly in the southern states. That said, macro softness and affordability challenges persist. SELL IDP Education (ASX:IEL) Deteriorating student volumes and shifting global immigration policy have led to significant earnings downgrades. Visibility remains poor, and risks are elevated. Cettire (ASX:CTT) Weak margins, US tariff headwinds, and a soft cash position point to a challenging outlook. The path to profitability appears longer and riskier. The views, information, or opinions expressed in the interviews in this article are solely those of the interviewee and do not represent the views of Stockhead. Stockhead does not provide, endorse or otherwise assume responsibility for any financial advice contained in this article. Originally published as Stock Tips: Never mind the alpha, what's the Sigma play this week?
News.com.au
3 days ago
- Business
- News.com.au
Stock Tips: Never mind the alpha, what's the Sigma play this week?
It's no easy gig analysing share prices and company performance but somebody's got to do it. Every week two experts from our Share Tips columnist pool give us their recommendations. Sean Conlan – Leyland Private Asset Management BUY Sigma Healthcare (ASX:SIG) We believe SIG will grow into its current PE multiple by refurbishing existing Chemist Warehouse stores, opening 20 new stores per annum across Australia and by exporting the brand offshore. Judo Capital Holdings (ASX:JDO) Improved funding costs give us more comfort on the near-term margin outlook. With forecast a~34% earnings CAGR over the next three years, and trading at only 12x FY26 P/E we think the valuation is attractive. HOLD Treasury Wine Estates (ASX:TWE) TWE has trimmed guidance for FY25 earnings growth, citing lower-than-expected wine sales in the US where economic uncertainty is hurting consumer demand. Austal (ASX:ASB) We remain positive on the long-term outlook for ASB, considering the macro tailwinds and attractive growth profile, however, we are conscious of its current valuation. SELL Bank of Queensland (ASX:BOQ) While BOQ's simplification strategy and pivot towards business is bearing fruit, we think it will continue to struggle to make returns above the cost of capital over the medium term. Lovisa Holdings (ASX:LOV) We are concerned about the quality of stores recently opened and think that higher-than-normal rates of discounting may be driving strong LFL sales. Chris Watt – Bell Potter Securities BUY CAR Group (CAR) Resilient RV sales, solid international operations and strong earnings momentum support continued growth. The company continues to benefit from a scalable global expansion strategy that allows it to replicate its model across international markets. Treasury Wine Estates (ASX:TWE) While the US premium wine market is weak, core luxury brands remain strong. DAOU Vineyards synergies and broader international opportunities provide upside despite recent downgrades. HOLD Technology One (ASX:TNE) A strong first-half result confirms the business is executing well, with growing recurring revenue and cash flow. However, recent share price gains limit short-term upside. James Hardie (ASX:JHX) Strategy execution in US new construction is on track, particularly in the southern states. That said, macro softness and affordability challenges persist. SELL IDP Education (ASX:IEL) Deteriorating student volumes and shifting global immigration policy have led to significant earnings downgrades. Visibility remains poor, and risks are elevated. Cettire (ASX:CTT) Weak margins, US tariff headwinds, and a soft cash position point to a challenging outlook. The path to profitability appears longer and riskier.
AU Financial Review
30-05-2025
- Business
- AU Financial Review
Chemist Warehouse insiders dump shares worth $4.7b in mass exit
One franchisee has sold $650 million worth of Chemist Warehouse shares, another a stake valued at $380 million. Ever since the pharmacy giant's debut on the ASX through a merger with wholesaler Sigma Healthcare, its biggest shareholders have been making a mint offloading stock. In all, some 37 per cent of the $13.8 billion in shares that aren't restricted from sale have changed hands since the February backdoor listing, which created one of the largest companies on the ASX and transformed Chemist Warehouse's founders into some of the wealthiest people in the country.
AU Financial Review
15-05-2025
- Business
- AU Financial Review
Chemist Warehouse scion cashes out $380m
Damien Gance, the son of Chemist Warehouse co-founder Sam Gance, has sold a $380 million stake in Sigma Healthcare, the ASX-listed company that houses the pharmaceutical and retail giant created by his father. Gance, who is a Sigma director, has sold $800 million worth of stock in the company since February when Chemist Warehouse made its sharemarket debut via a $34 billion backdoor listing.
News.com.au
06-05-2025
- Business
- News.com.au
Health Check: Investors catch a falling knife as biotech big names bounce from lows
The big-name biotechs present short-term trading opportunities for bold investors Nothing to see here, says Sigma Healthcare Broker reckons Mach 7 shares should be worth four times more than their current value The topsy-turvy market has created some lucrative trading opportunities in our big name biotechs – but like a good joke it's a case of getting the timing right. In the case of radiology imaging giant Pro Medicus (ASX:PME), the stock has declined 7% year to date. Yet astute investors buying at the April 7 low of $176 are 35% ahead – not bad for a month's work. Those buying a year ago have more than doubled their money, despite long-term rumblings that the stock is overvalued. The experts hold mixed views. Broker Barrenjoey recently raising its recommendation on the stock to 'overweight' with a price target of $275. Macquarie Equities has a target of $257 but notes the company's recently announced contract renewals 'are clearly largely factored into the valuation'. Now in the ASX top 100, Pro Medicus is automatically included in index funds and that has kept the shares well primed. Punting on recovery Telix Pharmaceuticals (ASX:TLX) shares are about 6% off their record $31.14 on February 25. But those who bought at the April 7 low of $23.15 are 26% to the good. The stock is 22% higher year to date and almost double on a year ago. Are they good value? Depends on who you talk to. UBS and Bell Potter ascribe a $36 a share valuation, implying chunky 24% upside. Morningstar reckons the stock is worth only 19.50 – 33% less than its current level. Those who bought into CSL (ASX:CSL) at a record $336 in February 2020 have been short-changed to the tune of 24%. The stock has declined 10% year to date. But those who weighed in at $233 on April 11 are 9% to the good. Shares in ResMed (ASX:RMD) and Cochlear (ASX:COH) have also gained around 10% and 8% respectively from their mid-April lows. The lesson is that beaten-down greats usually present opportunities, but of course no-one rings the bell at the low point. Damn! Broker says Mach 7 will put on the after burners What about the challengers? Imaging minnow Mach7 Technologies (ASX:M7T) has long been viewed as a mini-version of Pro Medicus, but has yet to take off at warp speed. In fact, the shares have halved over the last year. The US focused Mach 7's quarterly results last week revealed no new contracts, but receipts gained 28% to $11.4 million. Cash flow improved to $2.6 million and contracted annual recurring revenue is at a healthy $30.8 million. Broker Morgans values the stock at $1.37 – around four times the current valuation. Investors await the new CEO Teri Thomas, who starts in July. The dynamic Thomas headed the NZ-based breast imaging house Volpara Technologies, which last year was taken over by South Korea's Lunit for around $200 million. Mach 7's $80 million market cap is backed by $25 million of cash. The board concurs the stock is undervalued, having instituted a share buyback program that has acquired $1.2 million of stock to date. Sigma chemist merger is going to script No news is good news at Sigma Healthcare (ASX:SIG), which reports that no nasties have emerged since the company officially subsumed the larger Chemist Warehouse on February 2. In a trading update, the chemist retailer and drug wholesaler says underlying earnings have risen 36% in the last nine months. That's at the same clip as Chemist Warehouse's December half earnings, up 36% to $328 million. Sigma/Chemist Warehouses has become the giant of the apothecaries with 879 franchises stores, 3500 wholesale pharmacy customers and close to $10 billion of annual revenue. The company also reports that it expects to grow retail outlets at the same clip as over the last five years: 33 per year. The company is also eyeing judicious expansion offshore, where it has 81 stores (mainly in New Zealand but also in Ireland, China and Dubai). Still, uninspired investors today sold down the stock by about 5%. Cardiex vies for local approval Australia might be a puny medical device market relative to the US, but given the Trumpian uncertainties it's still an attractive geography. Having won US Food and Drug Administration (FDA) approval of its Conneqt Pulse heart app a year ago, Cardiex (ASX:CDX) has lodged an approval application with the local Therapeutic Goods Administration (TGA). 'The world's most advanced personal arterial health monitor', Conneqt Pulse provides users with a holistic snapshot of their cardiovascular system, including central blood pressure and arterial stiffness. The app includes the Cardiology Report, a comprehensive assessment of heart health. The science is based on pulse wave analysis, which deciphers the hidden signals within each heartbeat to generate advanced vascular biomarkers. Since launching in the US in mid-January Conneqt Pulse sales are off to a good start, with 3000 units sold. By the end of June management expects a sales run rate of 900 units a month, for annual revenue of $4-5 million. Cardiex also has devices for hypertension, cardiovascular disease and other vascular health disorders. In its quarterly report last week, the company said the Trump administration's cost cutting drive had affected sales to pharmaceutical companies and research organisations in the March quarter. This is because clinical trials have been delayed or cancelled, partly because of the funding squeeze on the National Institutes of Health (which funds hundreds of studies). As for the tariff threat, the company is 'actively monitoring developments and exploring mitigation strategies, including supply diversification and regional logistics optimisation'. The sales projections for Conneqt Pulse are based on existing inventory not subject to tariffs. The TGA lodgement follows the recent finalisation of a market agreement between Cardiex and manufacturing partner, Andon. The TGA registration process is expected to take three to six months.
