Hikma Pharmaceuticals (HIK) AI Stock Analysis

• Market Cap: £3.89B
• Dividend Yield: 3.61%
• Average Volume (3M): 631.74K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.81
• 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): 0.92
• Shares Outstanding: 221,886,460
• 10 Day Avg. Volume: 531,484
• 30 Day Avg. Volume: 631,743
• 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: £2,560.00
• Price Target Upside: 45.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: 2,051.00p ▲(16.34% Upside)

Hikma Pharmaceuticals' overall stock score reflects its strong financial performance and reasonable valuation, supported by positive technical indicators. The earnings call provided mixed signals with strong revenue growth but declining profits and cash flow. The company's strategic focus on growth and profitability offers potential for future performance.

Positive Factors

Revenue Growth

Consistent revenue growth across all segments and regions indicates strong market demand and effective business strategies, supporting long-term expansion.

Pipeline Developments

FDA approvals and pipeline expansion enhance Hikma's product offerings, potentially increasing future revenue streams and market competitiveness.

Strategic Acquisitions

Strategic acquisitions like Xellia strengthen Hikma's market position and diversify its product portfolio, supporting sustainable long-term growth.

Negative Factors

Operating Profit Decline

A decline in operating profit due to regional and product mix challenges may impact profitability, requiring strategic adjustments to maintain margins.

Decreased Operating Cash Flow

Reduced operating cash flow could limit Hikma's ability to invest in growth initiatives, affecting its financial flexibility and long-term strategic plans.

Margin Pressure in Injectables

Margin pressure in the Injectables segment due to cost increases and mix changes could affect profitability, necessitating cost management strategies.

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: 1763.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 1763 is below the 20-day moving average (MA) of 1795.95, above the 50-day MA of 1742.12, and below the 200-day MA of 1934.73, indicating a neutral trend. The MACD of 13.34 indicates Positive momentum. The RSI at 46.47 is Neutral, neither overbought nor oversold. The STOCH value of 51.47 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	75 Outperform	£3.89B	13.61	15.66%	3.61%	3.73%	27.13%
HLN	71 Outperform	£31.87B	21.29	9.35%	1.57%	-2.12%	42.10%
ANCR	57 Neutral	£171.09M	-7.00	2.83%	2.10%	8.74%	-166.50%
AGY	56 Neutral	£518.95M	―	―	―	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 Executives Acquire Shares, Signaling Confidence

Hikma Pharmaceuticals PLC announced that several of its Persons Discharging Managerial Responsibilities (PDMRs) have acquired ordinary shares in the company through a dividend reinvestment plan. This move, disclosed under the EU Market Abuse Regulation, indicates a continued commitment from the company’s leadership towards its growth and stability, potentially enhancing stakeholder confidence and reinforcing its market position.

The most recent analyst rating on (GB:HIK) stock is a Buy with a £1982.00 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 Shares

Hikma Pharmaceuticals announced a transaction involving Mazen Darwazah, the Executive Vice Chairman, who purchased 14,000 ordinary shares at £16.03 each, totaling £224,417.76, on the London Stock Exchange. This transaction is part of the company’s regulatory disclosure obligations under the EU Market Abuse Regulation, indicating continued confidence in the company’s market position and potential positive implications for stakeholders.

The most recent analyst rating on (GB:HIK) stock is a Buy with a £1982.00 price target. To see the full list of analyst forecasts on Hikma Pharmaceuticals stock, see the GB:HIK Stock Forecast page.

Hikma Pharmaceuticals Director Acquires Shares, Signaling Confidence

Hikma Pharmaceuticals announced a transaction involving Laura Balan, a Non-Executive Director, who purchased 3,500 ordinary shares of the company at a price of £18.207 per share, totaling £63,725.99. This transaction, conducted on the London Stock Exchange, reflects the ongoing engagement of the company’s leadership with its financial instruments, potentially signaling confidence in the company’s market position and future prospects.

The most recent analyst rating on (GB:HIK) stock is a Buy with a £1982.00 price target. To see the full list of analyst forecasts on Hikma Pharmaceuticals stock, see the GB:HIK Stock Forecast page.

Hikma Pharmaceuticals Executive 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’ Earnings Call: Mixed Financial Performance

Hikma Pharmaceuticals’ recent earnings call painted a mixed picture of its financial performance. While the company showcased notable revenue growth and strategic advancements, concerns arose from the decline in operating profit and cash flow, as well as challenges in maintaining margins. Despite these hurdles, Hikma’s strategic focus and potential for future growth provide a positive outlook for the company.

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.