Hikma Pharmaceuticals (HIK) AI Stock Analysis

• Market Cap: £3.56B
• Dividend Yield: 3.94%
• Average Volume (3M): 619.25K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.78
• Revenue Growth: 3.73%
• EPS Growth: 27.13%
• Country: UK
• Employees: 9,500
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.91
• Shares Outstanding: 221,886,460
• 10 Day Avg. Volume: 674,168
• 30 Day Avg. Volume: 619,255
• PEG Ratio: 0.17
• Price to Book (P/B): 2.41
• Price to Sales (P/S): 1.78
• P/FCF Ratio: 13.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £2,484.57
• Price Target Upside: 53.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 70 Outperform
• Price Target: 1,982.00p ▲(22.72% Upside)

Hikma Pharmaceuticals' overall stock score reflects its strong financial performance and reasonable valuation, tempered by bearish technical indicators and mixed earnings call results. The company's strategic positioning and growth potential are positive, but current market sentiment and technical trends suggest caution.

Positive Factors

Revenue Growth

Consistent revenue growth across all segments and regions indicates strong market demand and effective expansion strategies.

Pipeline Development

FDA approvals and pipeline expansion enhance product offerings, supporting long-term growth and competitive positioning.

Injectables Segment Performance

Strong growth in the Injectables segment, driven by acquisitions and new launches, reinforces Hikma's leadership in hospital-based therapies.

Negative Factors

Operating Profit Decline

Decline in operating profit due to regional and product mix pressures may impact profitability if not addressed strategically.

Decreased Operating Cash Flow

Reduced operating cash flow, primarily due to tax timing and profit decline, could limit financial flexibility for future investments.

Margin Pressure in Injectables

Margin contraction in the Injectables segment due to cost increases and mix changes may affect overall profitability if trends persist.

Hikma Pharmaceuticals Business Overview & Revenue Model

Company Description

Hikma Pharmaceuticals PLC develops, manufactures, markets, and sells a range of generic, branded, and in-licensed pharmaceutical products. The company offers its products in solid, semi-solid, liquid, and injectable final dosage forms. It operates through three segments: Injectables, Generics, and Branded. The Injectables segment provides generic injectable products primarily for use in hospitals. The Generics segment offers oral and other non-injectable generic products for the retail market. The Branded segment offers branded generics and in-licensed products to retail and hospital markets. The company provides its products in various therapeutic areas, including anti-infective, cardiovascular, central nervous system, diabetes, oncology, pain management, and respiratory. It operates in the United Kingdom, the United States, the Middle East, North Africa, Europe, and internationally. The company was founded in 1978 and is based in London, the United Kingdom.

How the Company Makes Money

Hikma Pharmaceuticals generates revenue primarily through the sale of its pharmaceutical products across various markets, including the United States, the Middle East, North Africa, and Europe. The company's revenue model is driven by its diverse product portfolio, which includes both generic and branded drugs. Key revenue streams come from the Injectables segment, which has seen significant demand due to the increasing need for hospital-based therapies, and the Generics segment, where Hikma competes in a crowded market with a focus on high-quality, cost-effective alternatives to branded drugs. Additionally, Hikma benefits from strategic partnerships and collaborations with other pharmaceutical companies and healthcare providers, which can enhance its product offerings and market presence. The company also invests in research and development to innovate and expand its product pipeline, further contributing to its revenue growth.

Hikma Pharmaceuticals Financial Statement Overview

Summary

Hikma Pharmaceuticals demonstrates strong financial health with consistent revenue growth and improved profit margins. The balance sheet is stable with moderate leverage, and cash flow remains positive despite a slight decrease in free cash flow. Overall, the company is on a positive growth trajectory with efficient cash management.

Income Statement

Hikma Pharmaceuticals shows strong financial performance with a consistent growth trajectory. The revenue growth rate stands at 8.77% from 2023 to 2024, driven by increases in both gross and net profit margins. The gross profit margin for 2024 is robust at 45.25%, while the net profit margin improved to 11.48% from the previous year's 6.61%. Both EBIT and EBITDA margins are healthy, indicating operational efficiency and profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a sound equity base. The debt-to-equity ratio is 0.57, indicating moderate leverage. The equity ratio is 44.98%, suggesting a solid proportion of assets financed by equity. Return on Equity (ROE) is improving at 15.54% for 2024, highlighting effective use of equity in generating profit.

Cash Flow

Cash flow analysis reveals strong operational cash flow with an operating cash flow to net income ratio of 1.57 for 2024, demonstrating efficient cash conversion from earnings. Free cash flow has decreased slightly by 9.11% from 2023 but remains positive, underscoring sufficient cash generation after capital expenditures. The free cash flow to net income ratio is 1.11, showing adequate free cash flow in relation to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.22B	3.13B	2.88B	2.52B	2.55B	2.34B
Gross Profit	1.37B	1.42B	1.41B	1.26B	1.30B	1.21B
EBITDA	547.00M	787.00M	791.00M	485.00M	744.00M	654.00M
Net Income	371.00M	359.00M	190.00M	188.00M	421.00M	431.00M
Balance Sheet
Total Assets	5.55B	5.13B	4.68B	4.47B	4.37B	4.13B
Cash, Cash Equivalents and Short-Term Investments	236.00M	213.00M	229.00M	292.00M	450.00M	347.00M
Total Debt	1.55B	1.31B	1.19B	1.28B	846.00M	932.00M
Total Liabilities	3.00B	2.81B	2.47B	2.32B	1.91B	1.99B
Stockholders Equity	2.50B	2.31B	2.20B	2.13B	2.45B	2.13B
Cash Flow
Free Cash Flow	363.00M	399.00M	439.00M	392.00M	493.00M	292.00M
Operating Cash Flow	527.00M	564.00M	608.00M	530.00M	638.00M	464.00M
Investing Cash Flow	-490.00M	-381.00M	-333.00M	-607.00M	-238.00M	-283.00M
Financing Cash Flow	-38.00M	-188.00M	-337.00M	-58.00M	-287.00M	-298.00M

Hikma Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1615.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

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 1615 is below the 20-day moving average (MA) of 1712.25, below the 50-day MA of 1815.52, and below the 200-day MA of 1960.51, indicating a bearish trend. The MACD of -58.74 indicates Positive momentum. The RSI at 25.84 is Positive, neither overbought nor oversold. The STOCH value of 23.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:HIK.

Hikma Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HIK	70 Outperform	£3.56B	12.63	15.66%	3.94%	3.73%	27.13%
HLN	70 Outperform	30.23B	20.13	8.92%	1.66%	-2.12%	42.10%
ANCR	65 Neutral	172.47M	32.01	28.43%	2.00%	-0.17%	592.46%
AGY	56 Neutral	395.61M	-11.07	0.00%	―	4.50%	74.32%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Hikma Pharmaceuticals Corporate Events

Hikma Pharmaceuticals Executive Exercises Share Options

Hikma Pharmaceuticals announced that Susan Ringdal, a Person Discharging Managerial Responsibility, exercised share options granted under the 2014 Executive Incentive Plan. As part of this transaction, she acquired 60,225 shares at no cost and sold 28,393 shares at £17.76 each to cover tax obligations, generating a total of £504,191.77. This transaction, conducted on the London Stock Exchange, reflects internal financial management and compliance with incentive plans, potentially impacting shareholder value and executive compensation structures.

The most recent analyst rating on (GB:HIK) stock is a Buy with a £2500.00 price target. To see the full list of analyst forecasts on Hikma Pharmaceuticals stock, see the GB:HIK Stock Forecast page.

Hikma Pharmaceuticals Executive Vice Chairman Acquires Significant Shareholding

Hikma Pharmaceuticals announced a significant transaction involving its Executive Vice Chairman, Mazen Darwazah, who purchased 200,000 ordinary shares of the company at £17.56 each, totaling £3,512,000. This transaction, conducted on the London Stock Exchange, underscores the confidence of the company’s leadership in its market position and future prospects, potentially impacting stakeholder perception positively.

The most recent analyst rating on (GB:HIK) stock is a Buy with a £2500.00 price target. To see the full list of analyst forecasts on Hikma Pharmaceuticals stock, see the GB:HIK Stock Forecast page.

Hikma Pharmaceuticals Reports Strong H1 2025 Performance and Positive Outlook

Hikma Pharmaceuticals reported solid performance in the first half of 2025, with a 6% increase in revenue driven by strong demand across its portfolio and successful product launches. Despite a decrease in core operating profit due to a strong comparator in 2024 and a change in product mix, the company anticipates a return to growth in the second half. Hikma is strengthening its manufacturing capabilities, advancing its pipeline, and expanding its portfolio through strategic partnerships and acquisitions. The company is also investing significantly in R&D and US manufacturing, positioning itself well for future growth and maintaining a strong outlook for 2025.

The most recent analyst rating on (GB:HIK) stock is a Buy with a £2500.00 price target. To see the full list of analyst forecasts on Hikma Pharmaceuticals stock, see the GB:HIK Stock Forecast page.

Hikma Pharmaceuticals Issues $500 Million in Guaranteed Notes

Hikma Pharmaceuticals, through its subsidiary Hikma Finance USA LLC, has announced the issuance of $500 million in 5.125% Guaranteed Notes due in 2030. These notes are expected to be traded on the International Securities Market of the London Stock Exchange, potentially enhancing the company’s financial flexibility and market presence.

The most recent analyst rating on (GB:HIK) stock is a Buy with a £2500.00 price target. To see the full list of analyst forecasts on Hikma Pharmaceuticals stock, see the GB:HIK Stock Forecast page.

Hikma Pharmaceuticals Discloses Managerial Share Disposal

Hikma Pharmaceuticals announced a transaction involving the disposal of 40,000 ordinary shares by Bassam Kanaan, a Person Discharging Managerial Responsibilities (PDMR) within the company. The transaction, conducted on the London Stock Exchange, amounted to a total value of £842,132, reflecting a share price of £21.05. This disclosure is part of the company’s compliance with the EU Market Abuse Regulation, ensuring transparency in managerial transactions.

The most recent analyst rating on (GB:HIK) stock is a Buy with a £2500.00 price target. To see the full list of analyst forecasts on Hikma Pharmaceuticals stock, see the GB:HIK Stock Forecast page.

Hikma Pharmaceuticals Discloses Share Disposal by Key Executive

Hikma Pharmaceuticals announced a transaction involving the disposal of shares by Dr. Bill Larkins, a Person Discharging Managerial Responsibilities at the company. The transaction, which involved the sale of 5,257 ordinary shares at a price of £21.28 each, was conducted on the London Stock Exchange, totaling £111,868.96. This disclosure is in compliance with the EU Market Abuse Regulation, highlighting Hikma’s commitment to transparency and regulatory adherence.

The most recent analyst rating on (GB:HIK) stock is a Buy with a £2650.00 price target. To see the full list of analyst forecasts on Hikma Pharmaceuticals stock, see the GB:HIK Stock Forecast page.

Hikma Pharmaceuticals Announces Executive Share Vesting Under Incentive Plan

Hikma Pharmaceuticals PLC announced the vesting of conditional share awards under its 2014 Executive Incentive Plan, resulting in the acquisition of shares by several key executives, including the Executive Chairman, CEO, and Executive Vice Chairman. This transaction reflects the company’s ongoing commitment to incentivize its leadership, potentially impacting its market positioning by aligning executive interests with shareholder value.

The most recent analyst rating on (GB:HIK) stock is a Buy with a £2500.00 price target. To see the full list of analyst forecasts on Hikma Pharmaceuticals stock, see the GB:HIK Stock Forecast page.

Hikma Pharmaceuticals Receives Rating Upgrade from Fitch

Hikma Pharmaceuticals announced that Fitch has upgraded its long-term issuer default rating to ‘BBB’ with a stable outlook, aligning with S&P’s recent upgrade. This reflects confidence in Hikma’s strategic direction, financial discipline, and operational resilience, highlighting its solid market position and ability to deliver strong financial results.

The most recent analyst rating on (GB:HIK) stock is a Buy with a £2500.00 price target. To see the full list of analyst forecasts on Hikma Pharmaceuticals stock, see the GB:HIK Stock Forecast page.

Hikma Pharmaceuticals Executives Involved in Share Pledge Transactions

Hikma Pharmaceuticals PLC has disclosed transactions involving its senior executives, including Executive Chairman Said Darwazah, Executive Vice Chairman Mazen Darwazah, and Non-Executive Director Ali Al-Husry. These transactions involve the grant of a pledge by Darhold Limited over 430,000 ordinary shares of Hikma Pharmaceuticals in favor of EFG International Bank. This move, involving key figures within the company, could have implications for the company’s financial strategies and stakeholder interests.

The most recent analyst rating on (GB:HIK) stock is a Buy with a £2500.00 price target. To see the full list of analyst forecasts on Hikma Pharmaceuticals stock, see the GB:HIK Stock Forecast page.

Hikma Pharmaceuticals Projects Strong Growth and Rebrands Generics Business

Hikma Pharmaceuticals announced strong medium-term growth guidance for its Group, projecting a 6% to 8% CAGR in revenue and a 7% to 9% CAGR in core operating profit from 2024 to 2027. The company aims to achieve $5 billion in Group revenue by 2030 and is rebranding its Generics business to Hikma Rx, emphasizing its focus on complex prescription medicines. This strategic move and growth projection highlight Hikma’s commitment to sustainable growth and its significant role in the US generic medicines market.

The most recent analyst rating on (GB:HIK) stock is a Buy with a £2500.00 price target. To see the full list of analyst forecasts on Hikma Pharmaceuticals stock, see the GB:HIK Stock Forecast page.