Hikma Pharmaceuticals (HIK) AI Stock Analysis

• Market Cap: £3.89B
• Dividend Yield: 4.02%
• 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: £2,400.71
• Price Target Upside: 51.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: 1,651.00p ▲(4.36% Upside)

Hikma Pharmaceuticals' overall stock score reflects strong financial performance and a fair valuation, tempered by bearish technical indicators and mixed earnings call sentiment. The company's strategic achievements and growth potential are notable, but current market momentum suggests caution.

Positive Factors

Revenue Growth

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

Injectables Segment Performance

The Injectables segment's strong growth, aided by acquisitions and new launches, underscores Hikma's competitive advantage in high-demand therapeutic areas.

Strong Pipeline Developments

FDA approvals and pipeline expansion enhance Hikma's product offerings and market position, driving future revenue and market share growth.

Negative Factors

Operating Profit Decline

A decline in operating profit due to regional and product mix challenges may hinder profitability, affecting long-term financial health.

Decreased Operating Cash Flow

Reduced operating cash flow limits financial flexibility and may impact the company's ability to invest in growth opportunities.

Margin Pressure in Injectables

Margin pressure in the Injectables segment due to cost increases and mix changes could erode profitability, impacting long-term margins.

Hikma Pharmaceuticals Business Overview & Revenue Model

Company Description

Hikma Pharmaceuticals PLC is a global pharmaceutical company headquartered in London, UK, that specializes in the development, manufacturing, and marketing of a broad range of generic and branded medications. The company operates primarily through two main business segments: Injectables and Generics, as well as a growing portfolio of branded products. Hikma’s core offerings include injectable medications, oral solids, and specialty pharmaceuticals, with a focus on therapeutic areas such as oncology, cardiovascular, and pain management.

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 and profit growth. The company maintains robust profitability margins and efficient cash generation, despite a slight decrease in free cash flow. Debt levels are manageable, and equity financing is solid, indicating a stable financial position.

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: 1582.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 1582 is below the 20-day moving average (MA) of 1764.60, below the 50-day MA of 1730.76, and below the 200-day MA of 1928.11, indicating a bearish trend. The MACD of -24.28 indicates Positive momentum. The RSI at 32.54 is Neutral, neither overbought nor oversold. The STOCH value of 12.64 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLN	71 Outperform	£31.87B	21.29	9.35%	1.56%	-2.12%	42.10%
HIK	67 Neutral	£3.89B	13.61	15.66%	4.02%	3.73%	27.13%
ANCR	57 Neutral	£171.09M	-7.00	2.83%	2.09%	8.74%	-166.50%
AGY	56 Neutral	£509.74M	―	―	―	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 Increase Shareholdings

Hikma Pharmaceuticals announced transactions involving the purchase of shares by key managerial personnel. Executive Vice Chairman Mazen Darwazah acquired 315,000 shares at an aggregated price of £16.009, totaling £5,042,760, while Senior Independent Director Victoria Hull purchased 3,214 shares at £15.47 each, totaling £49,720.58. These transactions, conducted on the London Stock Exchange, reflect a significant investment by the company’s leadership, potentially signaling confidence in the company’s future performance and stability.

The most recent analyst rating on (GB:HIK) stock is a Buy with a £2300.00 price target. To see the full list of analyst forecasts on Hikma Pharmaceuticals stock, see the GB:HIK Stock Forecast page.

Hikma Pharmaceuticals Updates 2025 Guidance and Medium-Term Outlook

Hikma Pharmaceuticals has confirmed its 2025 guidance and updated its medium-term growth outlook, highlighting progress in product launches, partnerships, and global manufacturing expansion. The Injectables business is performing well, with strong sales in Europe and MENA, and new product launches in the US. The Branded segment benefits from its oncology and chronic illness treatments, while Hikma Rx sees robust performance in respiratory and nasal spray categories. Organizational changes include centralizing R&D under a global structure to accelerate product development. Despite adjusting medium-term profit expectations due to supply chain challenges, Hikma remains focused on expanding manufacturing capacity and increasing R&D investment to meet growing demand.

The most recent analyst rating on (GB:HIK) stock is a Buy with a £2051.00 price target. To see the full list of analyst forecasts on Hikma Pharmaceuticals stock, see the GB:HIK Stock Forecast page.

Hikma Pharmaceuticals Executives 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.