Hikma Pharmaceuticals PLC (GB:HIK)
LSE:HIK
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Hikma Pharmaceuticals
(LSE:HIK)
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Rating:59Neutral
Price Target:
1,373.00 p
▼(-11.65% Downside)
Action:DowngradedDate:02/28/26
The score is held back primarily by weakening cash generation and a notably bearish technical trend (oversold and trading below key moving averages). These are partially offset by attractive valuation (low P/E and strong dividend yield) and a constructive earnings-call outlook supported by guidance comfort and a GBP 250m buyback, despite near-term injectable headwinds.
Positive Factors
High Group Profitability
A sustained ~25% group EBITDA margin indicates durable operational leverage and cost structure advantages versus peers. This level of underlying profitability supports reinvestment, R&D funding and shareholder returns, improving resilience across cycles and financing flexibility.
Negative Factors
Weakened Cash Generation
A sharp decline in operating cash flow and a ~54% fall in free cash flow materially weakens internal funding capacity. Reduced cash conversion limits flexibility for capex, buybacks, debt reduction and acquisitions, heightening refinancing and execution risk if the trend persists.
Read all positive and negative factors
Positive Factors
Negative Factors
High Group Profitability
A sustained ~25% group EBITDA margin indicates durable operational leverage and cost structure advantages versus peers. This level of underlying profitability supports reinvestment, R&D funding and shareholder returns, improving resilience across cycles and financing flexibility.
Read all positive factors
Hikma Pharmaceuticals (HIK) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£2.83B
Dividend Yield4.16%
Average Volume (3M)631.74K
Price to Earnings (P/E)11.2
Beta (1Y)0.84
Revenue Growth3.73%
EPS Growth27.13%
CountryUK
Employees9,500
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.56
Shares Outstanding217,930,180
10 Day Avg. Volume531,484
30 Day Avg. Volume631,743
Financial Highlights & Ratios
PEG Ratio0.72
Price to Book (P/B)1.77
Price to Sales (P/S)1.35
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
£1,887.50Price Target Upside21.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)2.22
Revenue Forecast (FY)£3.46B
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...
How the Company Makes Money
Hikma Pharmaceuticals generates revenue through multiple key streams. The Injectables segment, which includes a range of sterile injectable products, is a significant contributor to the company's earnings, capitalizing on the rising demand for com...
Hikma Pharmaceuticals Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call presented a balanced but constructive outlook: the company shows solid underlying strength (25% group EBITDA, Rx margin recovery, #1 position in MENA, strong Europe performance, growing RTU pipeline and a GBP 250m buyback) while acknowledging meaningful near-term headwinds concentrated in the injectable division (margin reset, delayed launches, and reduced CMO volume until U.S. capacity ramps around 2028). Management has committed to higher R&D (5-6% of sales), centralized R&D spending and targeted investments to drive medium- to long-term growth, accepting short-term margin pressure. Given the broad-based positives across Rx, branded and MENA, together with a clear action plan for injectables and CMO capacity build-out, the tone is cautiously optimistic.Positive Updates
Strong Group Profitability
Group EBITDA margin at ~25%, materially ahead of many peers (peers targeting ~22%), demonstrating strong overall profitability and operational leverage.
Negative Updates
Injectables Near-Term Profitability Reset
Injectables margins have reset from prior mid-30s levels down to the high-20s/low-30s (management cited a 2-3 percentage point drag versus prior expectations) driven by increased R&D, sales & marketing spend and CMO changes.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Group Profitability
Group EBITDA margin at ~25%, materially ahead of many peers (peers targeting ~22%), demonstrating strong overall profitability and operational leverage.
Read all positive updates
Company Guidance
Management said they are comfortable with 2026 guidance while keeping an aspirational GBP 5bn 2030 revenue target, and highlighted a strong group EBITDA of ~25% (vs. peers ~22%); R&D will be increased to ~5–6% of sales (about a $45m YoY uplift with ~GBP15m extra in injectables) and moved to corporate control, the Board has approved a GBP 250m buyback, and Rx margins are running around 20% (historical Rx EBIT ~GBP 200m). They explained injectables margins have reset from mid‑30s to the high‑20s/around the 30% floor flagged in November, Europe injectables grew ~23% this year, and the RTU/TYZAVAN programme (15 RTU products in the pipeline) targets a ~41m‑gram vancomycin market (Hikma has converted ~13% of grams and serves ~15% of the 22,000 sites); CMO is ~10% of revenue today with a goal toward ~20% by 2030 and major Bedford/Xellia capacity expected online by 2028, leading management to expect stronger injectable and overall growth from 2027–28 onward.Hikma Pharmaceuticals Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
67
Positive
Cash Flow
46
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.42B | 3.13B | 2.88B | 2.52B | 2.55B |
| Gross Profit | 1.37B | 1.42B | 1.41B | 1.26B | 1.30B |
| EBITDA | 853.54M | 787.00M | 791.00M | 485.00M | 744.00M |
| Net Income | 410.43M | 359.00M | 190.00M | 188.00M | 421.00M |
Balance Sheet | |||||
| Total Assets | 5.67B | 5.13B | 4.68B | 4.47B | 4.37B |
| Cash, Cash Equivalents and Short-Term Investments | 354.13M | 213.00M | 229.00M | 292.00M | 450.00M |
| Total Debt | 1.65B | 1.31B | 1.19B | 1.28B | 846.00M |
| Total Liabilities | 3.07B | 2.81B | 2.47B | 2.32B | 1.91B |
| Stockholders Equity | 2.59B | 2.31B | 2.20B | 2.13B | 2.45B |
Cash Flow | |||||
| Free Cash Flow | 165.40M | 399.00M | 439.00M | 392.00M | 493.00M |
| Operating Cash Flow | 366.53M | 564.00M | 608.00M | 530.00M | 638.00M |
| Investing Cash Flow | -402.27M | -381.00M | -333.00M | -607.00M | -238.00M |
| Financing Cash Flow | 59.22M | -188.00M | -337.00M | -58.00M | -287.00M |
Hikma Pharmaceuticals Technical Analysis
Neutral
1554.00
Price Trends
1377.23
Negative
1444.60
Negative
1603.62
Negative
Market Momentum
-21.97
Negative
53.64
Neutral
85.60
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HIK, the sentiment is Neutral. The current price of 1554 is above the 20-day moving average (MA) of 1231.83, above the 50-day MA of 1377.23, and below the 200-day MA of 1603.62, indicating a neutral trend. The MACD of -21.97 indicates Negative momentum. The RSI at 53.64 is Neutral, neither overbought nor oversold. The STOCH value of 85.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | £33.25B | 20.15 | 6.43% | 1.51% | -2.12% | 42.10% | |
65 Neutral | £77.36M | -8.91 | -0.12% | ― | ― | ― | |
63 Neutral | £91.88M | -1.10 | 206.44% | ― | 93.48% | 51.18% | |
59 Neutral | £2.83B | 11.21 | 15.83% | 4.16% | 3.73% | 27.13% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
45 Neutral | £652.25M | -9.44 | 227.10% | ― | -0.28% | 22.94% |
* Healthcare Sector Average
GB:HIK
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Hikma Pharmaceuticals Corporate Events
Business Operations and StrategyStock Buyback
Hikma launches $250m buyback with first £1.2m share purchase
Positive
Feb 27, 2026
Hikma Pharmaceuticals has begun executing a $250 million share repurchase programme, buying back 87,500 ordinary shares on 26 February 2026 through Citigroup Global Markets at a volume-weighted average price of 1,394.36 pence. The company plans to...
Business Operations and StrategyStock Buyback
Hikma launches $250m share buyback to bolster capital efficiency and signal growth confidence
Positive
Feb 26, 2026
Hikma Pharmaceuticals has launched a share buyback programme of up to $250 million in 2026, aiming to reduce its share capital while signalling strong cash generation, a robust balance sheet and board confidence in the company’s growth prosp...
Business Operations and StrategyExecutive/Board ChangesStock BuybackDividendsFinancial Disclosures
Hikma posts revenue growth, launches $250m buyback and overhauls leadership
Positive
Feb 26, 2026
Hikma Pharmaceuticals reported 2025 core revenue up 6% to $3.35 billion and core operating profit up 3% to $741 million, driven by double-digit growth in its Branded unit and solid performance in injectables and Hikma Rx across North America, MENA...
Financial Disclosures
Hikma Sets Date for 2025 Full-Year Results Announcement
Neutral
Feb 3, 2026
Hikma Pharmaceuticals has scheduled the release of its financial results for the year ended 31 December 2025 on 26 February 2026, providing investors and analysts with an upcoming view of the company’s recent performance. The group will make...
Regulatory Filings and Compliance
Hikma Executive Vice Chairman Buys £1.5m of Company Shares
Positive
Dec 19, 2025
Hikma Pharmaceuticals has disclosed that Executive Vice Chairman Mazen Darwazah purchased 100,000 ordinary shares in the company on 19 December 2025 on the London Stock Exchange, at a price of £14.986 per share, for a total consideration of a...
Private Placements and FinancingRegulatory Filings and Compliance
Hikma directors restructure pledges over 2.5 million shares via Darhold Limited
Neutral
Dec 19, 2025
Hikma Pharmaceuticals has disclosed a series of share-related transactions involving its senior leadership and a closely associated entity, Darhold Limited, in line with market abuse regulations. On 19 December 2025, Darhold released a pledge over...
Regulatory Filings and Compliance
Hikma Pharmaceuticals Announces Share Pledge Transactions by Key Executives
Neutral
Dec 15, 2025
Hikma Pharmaceuticals announced transactions involving the release and grant of pledges over 1,000,000 ordinary shares by Darhold Limited, a company closely associated with Hikma’s executive leadership. These transactions, involving prominen...
Business Operations and StrategyExecutive/Board Changes
Hikma Pharmaceuticals Announces Leadership Changes and Board Appointment
Neutral
Dec 15, 2025
Hikma Pharmaceuticals announced a leadership change with CEO Riad Mishlawi stepping down, and Executive Chairman Said Darwazah assuming CEO responsibilities. Khalid Nabilsi, the CFO, joins the Board to enhance strategic focus. The Board is confide...
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.