How much could the Sigma Healthcare share price rise in the next year?

The Sigma Healthcare Ltd (ASX: SIG) share price has seen its fair share of volatility in the last year, as the chart below shows. The owner of Chemist Warehouse, Amcal and Discount Drug Stores has delivered strong financial performance, even if the valuation hasn’t reflected that.

When a business reports solid earnings growth, it normally leads to strong shareholder returns. The FY26 result clearly demonstrated what the company is capable of.

Let’s review what the company achieved in the 2026 financial year, then consider what experts think of Sigma Healthcare’s share price.

FY26 earnings recap

In the 2026 financial year, revenue grew by 15.5% to $10.8 billion. The Australian segment grew revenue by 14.9% to $10.4 billion, while the international segment grew revenue by 33% to $421.4 million. Australian Chemist Warehouse like-for-like sales growth was 13.4%, while international like-for-like sales growth was 12.2%.

That’s an impressive level of growth considering how long the company has been growing.

It added 24 Chemist Warehouse branded stores to the Australian network to reach 561, while the international segment opened 20 stores offshore to reach 98.

Profit improved even faster than revenue. The company’s normalised operating profit (EBIT) grew 20.6% to $1.09 billion, with the EBIT margin improving to 10.1%. Within that, Australian EBIT rose 18.3% and international EBIT grew 91.3%. Normalised net profit increased by 22.3% to $732.3 million.

It also revealed that net debt reduced to $663 million, so the balance sheet health improved on a debt-to-normalised EBITDA ratio basis to 0.57x.

The merger between Sigma Healthcare and Chemist Warehouse continues to deliver significant integration synergies. The synergies delivered reached $32.6 million. The company said it’s on track to reach $100 million per year by FY29.

There were solid growth numbers all around. The company’s earnings look set to grow in FY27. In its outlook commentary, the company said Australian Chemist Warehouse branded store network continues to see double-digit like-for-like sales growth.

For the first half of FY27, it plans to onboard 13 Chemist Warehouse stores in the Australian network and another 19 international stores, including its entry into the UK market. It also plans to open 42 stores across Amcal and Discount Drug Stores in Australia during the first half of FY27.

Sigma Healthcare share price target

A price target is where analysts think the share price of a business will be in 12 months from the time of the investment call.

According to CMC Invest, there have been 11 analyst ratings on the business within the last three months. Nine of those ratings were a buy, and two were a hold. The average price target of those 11 analysts is $3.14, suggesting a possible rise of 10% over the next year.

The most optimistic price target is $3.58. This implies a possible rise of around 25% over the next year.

Overall, it seems like a compelling long-term opportunity, though it’s not the only ASX stock worth looking at.

The post How much could the Sigma Healthcare share price rise in the next year? 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.