A rare buying opportunity in 1 of Australia’s top shares?

I’d describe Sigma Healthcare Ltd (ASX: SIG) as one of Australia’s top shares because of the growth it’s currently achieving and its potential to continue growing at a very attractive rate.

When I look at non-tech names that could deliver the most profit growth over the next five years, I think Sigma Healthcare – the owner of the Chemist Warehouse brand – is one of the most compelling businesses on the ASX.

At the time of writing, the Sigma Healthcare share price is down by approximately 10% from its 2026 high in February 2026. That’s not a huge fall, but it has big growth plans so it may be rare for it to be this low again.

I think this is a good time to look at the business, given it’s cheaper and looks more compelling than ever.

Excellent Australian growth

When I think about which businesses are likely to deliver market-beating returns (of more than 10% per year), I think it’s a really big help if the business is achieving revenue growth of at least 10% per year. At that pace, I’d call it one of Australia’s top shares as long as it’s combined with profit growth.

In my view, revenue is one of the biggest drivers of net profit, perhaps the most important one because of how that feeds into a company’s other profit lines.

Considering the business is already worth tens of billions of dollars, it’d be understandable for the growth rate to be fairly slow these days. But, Chemist Warehouse is still growing its market share at a very strong pace.

The business recently gave a trading update which included some very positive numbers.

The Chemist Warehouse-branded Australian store network saw total sales growth of 16.7% for the period of 1 July 2025 to 30 April 2026. This isn’t just being driven by new stores – it reported that like-for-like (LFL) growth was 14.4%, showing excellent growth at its existing stores.

These sales were strong despite cycling the structural uplift of GLP-1 sales in the second half of FY25. Growth in GLP-1 sales growth is expected to continue.

International growth

The most important thing is that the core business is growing well, but Chemist Warehouse has another massive growth pillar to its company – international. This is one of the main reasons why I think it’s one of Australia’s top shares.

It currently has a presence in New Zealand, Ireland, Dubai and China. While the sales generated by these markets are just a fraction of what Australia delivers, there is scope for the international segment to become a bigger part of the picture, considering Australia’s population is relatively small.

According to the recent trading update, Chemist Warehouse’s international store network delivered total sales growth of 24.7%, with like-for-like sales growth of 11.8%.

It also recently announced an acquisition agreement that will allow it to expand into the UK, initially starting with a few locations in London. The UK has a bigger population than Australia, so if Chemist Warehouse can get this right then the opportunity is large for that market.

Rising profit margins

Many investors value a business based on how much profit it generates and could generate in the future.

As I’ve said, revenue is already growing at a fast pace. But, excitingly, the company’s net profit can grow even faster than that because of its rising profit margins. That’s another sign that it’s one of Australia’s top shares, in my view.

In the FY26 half-year result, total revenue increased 14.9% to $5.5 billion, normalised operating profit (EBIT) grew 18.7% to $582.9 million and normalised net profit after tax (NPAT) rose 19.2%. As you can see, each line of the financials grew faster than the last.

If operating leverage continues to play out and its bottom line continues rising at a strong pace, it’ll definitely be one to watch. I’m planning to buy some of this business this year, which I’m happy to call one of Australia’s top shares.

The post A rare buying opportunity in 1 of Australia’s top shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.