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Hikma Pharmaceuticals
(LSE:HIK)
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Rating:70Outperform
Price Target:
1,648.00 p
▲(0.49% Upside)
Action:Upgraded
Date:08/06/26
The score is driven primarily by solid but mixed fundamentals: steady revenue growth and earnings recovery are offset by a sharp deterioration in the latest cash flow and weaker cash conversion. Technicals are supportive with price above key moving averages and neutral-to-positive momentum. Valuation is a major positive given the very low P/E and ~3.9% dividend yield. The earnings call adds moderate support via reiterated guidance and strong H1 execution, tempered by clear H2 headwinds (mix/stockpiling, price erosion, and higher investment).
Positive Factors
Steady revenue growth and earnings recovery
Hikma has maintained a solid top-line trajectory while restoring earnings after the 2022–2023 dip. This indicates improved execution across its portfolio and provides a stronger base for continued investment, product launches and operating resilience over the next several quarters.
Negative Factors
Sharp deterioration in cash generation
The steep decline in operating and free cash flow, together with free cash flow at about 45% of net income, signals weaker cash conversion than reported profitability. If persistent, this could constrain internally funded investment and reduce flexibility for capital allocation.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady revenue growth and earnings recovery
Hikma has maintained a solid top-line trajectory while restoring earnings after the 2022–2023 dip. This indicates improved execution across its portfolio and provides a stronger base for continued investment, product launches and operating resilience over the next several quarters.
Read all positive factors
Hikma Pharmaceuticals (HIK) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£3.18B
Dividend Yield4.23%
Average Volume (3M)966.00K
Price to Earnings (P/E)11.3
Beta (1Y)0.81
Revenue Growth2.48%
EPS Growth3.36%
CountryUK
Employees9,500
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)1.79
Shares Outstanding208,747,630
10 Day Avg. Volume425,551
30 Day Avg. Volume966,002
Financial Highlights & Ratios
PEG Ratio0.72
Price to Book (P/B)1.77
Price to Sales (P/S)1.37
P/FCF Ratio27.81
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£1,929.00Price Target Upside17.62% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)2.25
Revenue Forecast (FY)£3.46B
Hikma Pharmaceuticals Business Overview & Revenue Model
Company Description
Hikma Pharmaceuticals PLC is a global pharmaceutical enterprise involved in the creation, production, promotion, and distribution of a wide array of generic, branded, and licensed medicinal solutions. These offerings are presented in various dosag...
How the Company Makes Money
Hikma makes money primarily by selling prescription pharmaceutical products through a combination of (1) generic medicines, (2) branded (or branded-generic) medicines, and (3) sterile injectable products, depending on the market. Revenue is genera...
Hikma Pharmaceuticals Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 25, 2027
Earnings Call Sentiment Neutral
The call conveyed balanced progress: strong H1 operational and financial performance (EBIT/EBITDA up ~8%, EPS up ~5%), clear operational fixes in injectables, solid MENA momentum, advancing product launches (TYZAVAN, tapentadol) and CMO pipeline, and near‑term proof of capital return via buybacks. Offsetting this are meaningful H2 risks (historical H1 tender weighting and stockpiling normalisation), ongoing price erosion in parts of Rx, divestment of a loss‑making 503B unit, and elevated H2 investment that will temper near‑term margins. Management reiterated full‑year guidance and emphasised continued investment for medium‑term growth (CMO, R&D, US capacity). Overall the positives are meaningful but matched by tangible short‑term headwinds and execution/market risks.Positive Updates
Profitability Improvement (EBIT / EBITDA)
EBIT and EBITDA increased by almost 8% in H1 2026, reflecting stronger operating performance and margin management.
Negative Updates
Second‑Half Branded Weighting and Caution
Branded / MENA and tender activity is historically H1‑weighted (management noted H1 ~55% of sales) and management signalled a material second‑half slowdown in branded revenues and operating profit relative to H1, prompting caution and maintenance of conservative full‑year guidance despite strong H1 results.
Read all updates
Q2-2026 Updates
Positive
Negative
Profitability Improvement (EBIT / EBITDA)
EBIT and EBITDA increased by almost 8% in H1 2026, reflecting stronger operating performance and margin management.
Read all positive updates
Company Guidance
Hikma reiterated its FY2026 guidance of group revenue growth of 2–4% and operating profit of $720–$770m (H1 operating profit was $405m), after H1 delivered EBIT and EBITDA up almost 8% and EPS up ~5%; management said branded/tender sales are H1‑weighted (around 55% of sales in H1), R&D and promotion spend will increase in H2, and inflation has been absorbed so far. Other metrics called out: buyback ~complete (~$230m spent to buy ~11–12m shares, ~$20m remaining), ~80% of Vanco Ready customers have switched to TYZAVAN, injectable and CMO revenues are expected to pick up in H2 (Rx CMO still tracking to a 20% of Rx‑revenue target by 2030), the 503B compounding unit is classified as held for sale (expected within 12 months), and major capacity additions (Bedford plant due in 2028) underpin the outlook.Hikma Pharmaceuticals Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
67
Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.41B | 3.35B | 3.13B | 2.88B | 2.52B | 2.55B |
| Gross Profit | 1.40B | 1.44B | 1.42B | 1.41B | 1.26B | 1.30B |
| EBITDA | 889.01M | 845.00M | 787.00M | 791.00M | 485.00M | 744.00M |
| Net Income | 385.96M | 410.43M | 359.00M | 190.00M | 188.00M | 421.00M |
Balance Sheet | ||||||
| Total Assets | 5.86B | 5.67B | 5.13B | 4.68B | 4.47B | 4.37B |
| Cash, Cash Equivalents and Short-Term Investments | 290.50M | 354.13M | 213.00M | 229.00M | 292.00M | 450.00M |
| Total Debt | 1.97B | 1.60B | 1.31B | 1.19B | 1.28B | 846.00M |
| Total Liabilities | 3.31B | 3.07B | 2.81B | 2.47B | 2.32B | 1.91B |
| Stockholders Equity | 2.54B | 2.59B | 2.31B | 2.20B | 2.13B | 2.45B |
Cash Flow | ||||||
| Free Cash Flow | 148.17M | 165.40M | 399.00M | 439.00M | 392.00M | 493.00M |
| Operating Cash Flow | 396.55M | 366.53M | 564.00M | 608.00M | 530.00M | 638.00M |
| Investing Cash Flow | -321.43M | -402.27M | -381.00M | -333.00M | -607.00M | -238.00M |
| Financing Cash Flow | -49.08M | 59.22M | -188.00M | -337.00M | -58.00M | -287.00M |
Hikma Pharmaceuticals Technical Analysis
Negative
1640.00
Price Trends
1582.51
Negative
1503.46
Negative
1451.68
Positive
Market Momentum
-9.13
Positive
28.96
Positive
16.09
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HIK, the sentiment is Negative. The current price of 1640 is above the 20-day moving average (MA) of 1615.30, above the 50-day MA of 1582.51, and above the 200-day MA of 1451.68, indicating a neutral trend. The MACD of -9.13 indicates Positive momentum. The RSI at 28.96 is Positive, neither overbought nor oversold. The STOCH value of 16.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:HIK.
Hikma Pharmaceuticals Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | £79.75M | 15.30 | 7.82% | 0.10% | ― | ― | |
70 Outperform | £3.18B | 11.31 | 15.05% | 4.23% | 2.48% | 3.36% | |
66 Neutral | £29.45B | 18.53 | 9.89% | 1.37% | 1.21% | 8.33% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
43 Neutral | £54.03M | -6.76 | 64.57% | ― | 36.19% | 60.75% | |
42 Neutral | £316.63M | -4.80 | 409.00% | ― | 2.94% | -32.00% |
* Healthcare Sector Average
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Hikma Pharmaceuticals Corporate Events
Regulatory Filings and Compliance
Hikma updates market on total voting rights and share capital
Neutral
Sep 1, 2026
Hikma Pharmaceuticals reported that, as of 31 August 2026, its issued share capital consists of 208,747,630 ordinary shares of 10 pence each with voting rights, excluding 12,833,233 treasury shares that carry no voting rights. The disclosed share ...
Business Operations and StrategyStock Buyback
Hikma completes $250m share buyback, reshaping capital structure
Positive
Aug 28, 2026
Hikma Pharmaceuticals has completed the second and final tranche of its $250 million share repurchase programme, buying 6,062,420 ordinary shares between 27 May and 27 August 2026 at an average price of £15.37, which it intends to cancel. Acr...
Business Operations and StrategyPrivate Placements and Financing
Hikma Executives Restructure Pledges Over 2 Million Shares via Darhold
Neutral
Aug 24, 2026
Hikma Pharmaceuticals has disclosed a series of share-pledge transactions involving senior insiders, including Chief Executive Officer Said Darwazah, Executive Vice Chairman and Deputy CEO MENA Mazen Darwazeh, and Non-Executive Director Ali Al-Hus...
Business Operations and StrategyStock Buyback
Hikma Advances $250m Share Buyback, Tightens Free Float
Positive
Aug 24, 2026
Hikma Pharmaceuticals has continued the second tranche of its $250 million share repurchase programme, buying back ordinary shares between 17 and 18 August 2026 on the London Stock Exchange and intending to cancel these shares to reduce its outsta...
Business Operations and StrategyStock Buyback
Hikma steps up $250m buyback with latest share repurchases
Positive
Aug 17, 2026
Hikma Pharmaceuticals has repurchased 564,063 ordinary shares over 10–14 August on the London Stock Exchange as part of the second tranche of its $250 million share buyback, with prices mostly in the mid-1,600 pence range. The company plans ...
Regulatory Filings and Compliance
Hikma Director Tobias Hestler Boosts Stake with £123,600 Share Purchase
Positive
Aug 11, 2026
Hikma Pharmaceuticals has disclosed that non-executive director Tobias Hestler purchased 7,500 ordinary shares in the company on 10 August 2026 at £16.48 per share on the London Stock Exchange, for a total consideration of £123,600. The ...
Business Operations and StrategyStock BuybackFinancial Disclosures
Hikma Advances $250m Buyback, Cuts Share Count and Voting Rights
Positive
Aug 10, 2026
Hikma Pharmaceuticals has continued the second tranche of its $250 million share repurchase programme, buying back ordinary shares between 3 and 7 August 2026 on the London Stock Exchange through J.P. Morgan Securities. The company intends to canc...
Business Operations and StrategyExecutive/Board Changes
Hikma strengthens board with appointment of former Haleon CFO Tobias Hestler
Positive
Aug 6, 2026
Hikma Pharmaceuticals has appointed former FTSE 100 chief financial officer Tobias Hestler as an independent non-executive director, effective 7 August 2026, strengthening its board with deep financial, MA and healthcare sector expertise. Hestler ...
Business Operations and StrategyExecutive/Board ChangesStock BuybackDividendsFinancial Disclosures
Hikma lifts profit and R&D spend as it reaffirms 2026 outlook
Positive
Aug 6, 2026
Hikma Pharmaceuticals reported a solid first half of 2026, with group revenue rising 4% to $1,728 million and core operating profit up 9% to $405 million, driven by double-digit growth in its Branded division and resilient Injectables and Hikma Rx...
Regulatory Filings and Compliance
Hikma updates market on share capital and voting rights
Neutral
Aug 3, 2026
Hikma Pharmaceuticals has confirmed that, as of 31 July 2026, its issued share capital consists of 210,142,206 ordinary shares of 10 pence each carrying voting rights, with an additional 12,833,233 shares held in treasury that do not carry voting ...
Business Operations and StrategyStock Buyback
Hikma advances $250m buyback, cuts share count and voting base
Positive
Aug 3, 2026
Hikma Pharmaceuticals has continued the second tranche of its $250 million share repurchase programme, buying back 587,626 ordinary shares between 27 and 31 July 2026 on the London Stock Exchange via J.P. Morgan Securities. The company intends to ...
Business Operations and StrategyStock Buyback
Hikma advances $250m share buyback, cancels repurchased stock
Positive
Jul 27, 2026
Hikma Pharmaceuticals has continued the second tranche of its $250 million share repurchase programme, buying back ordinary shares between 20 and 24 July 2026 on London and BATS venues, with prices around 1,525 to 1,595 pence, and intends to cance...
Business Operations and StrategyStock BuybackFinancial Disclosures
Hikma Advances $250 Million Share Buyback, Cuts Share Count
Positive
Jul 20, 2026
Hikma Pharmaceuticals has continued the second tranche of its $250 million share repurchase programme, buying back ordinary shares between 13 and 17 July 2026 on venues including the London Stock Exchange and BATS. The company intends to cancel th...
Business Operations and StrategyStock Buyback
Hikma Cancels More Shares as $250m Buyback Passes 10 Million Mark
Positive
Jul 13, 2026
Hikma Pharmaceuticals has continued the second tranche of its $250 million share repurchase programme, buying back 434,734 ordinary shares on the London Stock Exchange between 6 and 10 July 2026 at volume‑weighted average prices ranging from...
Business Operations and StrategyStock Buyback
Hikma Advances $250m Share Buyback, Tightens Free-Float
Positive
Jul 6, 2026
Hikma Pharmaceuticals has continued the second tranche of its $250 million share repurchase programme, buying 73,836 ordinary shares on the London Stock Exchange between 29 June and 3 July 2026, which it intends to cancel. Since the buyback’...
Regulatory Filings and Compliance
Hikma Updates Market on Total Voting Rights and Share Capital
Neutral
Jul 1, 2026
Hikma Pharmaceuticals has disclosed that, as of 30 June 2026, its issued share capital consists of 212,220,276 ordinary shares of 10 pence each with voting rights, excluding 12,833,233 treasury shares that do not carry voting rights. The company n...
Business Operations and StrategyStock Buyback
Hikma Advances $250m Buyback, Cuts Share Count and Voting Free Float
Positive
Jun 29, 2026
Hikma Pharmaceuticals has continued the second tranche of its $250 million share buyback, repurchasing its own ordinary shares between 22 and 26 June 2026 through J.P. Morgan Securities at prices around 1,470 pence. The company plans to cancel the...
Business Operations and StrategyStock Buyback
Hikma Advances $250m Buyback, Tightens Share Base
Positive
Jun 22, 2026
Hikma Pharmaceuticals has continued the second tranche of its $250 million share repurchase programme, buying back ordinary shares between 15 and 19 June 2026 across multiple trading venues, including the London Stock Exchange. The company intends...
Business Operations and StrategyStock Buyback
Hikma Advances $250m Buyback, Cuts Share Count and Tightens Free Float
Positive
Jun 15, 2026
Hikma Pharmaceuticals has continued the second tranche of its $250 million share repurchase programme, buying back ordinary shares between 8 and 12 June 2026 on the BATE and London Stock Exchange venues at prices around 1,452 to 1,485 pence per sh...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.