Hikma Pharmaceuticals PLC (GB:HIK)
LSE:HIK
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Hikma Pharmaceuticals
(LSE:HIK)
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Rating:59Neutral
Price Target:
1,545.00 p
▼(-0.58% Downside)
Action:Downgraded
Date: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 EBITDA Margin
A sustained group EBITDA margin near 25% indicates durable operational leverage and cost control versus peers. Higher underlying profitability provides buffer for reinvestment, funds R&D and capex, and supports long-term cash generation even if revenues fluctuate.
Negative Factors
Weakened Cash Generation
A sharp decline in operating and free cash flow signals weaker cash conversion and raises execution risk for funding R&D, capex and CMO investments without increasing leverage or reducing shareholder returns. This constrains financial flexibility over the next 2-6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
High Group EBITDA Margin
A sustained group EBITDA margin near 25% indicates durable operational leverage and cost control versus peers. Higher underlying profitability provides buffer for reinvestment, funds R&D and capex, and supports long-term cash generation even if revenues fluctuate.
Read all positive factors
Hikma Pharmaceuticals (HIK) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£3.16B
Dividend Yield4.16%
Average Volume (3M)631.74K
Price to Earnings (P/E)7.0
Beta (1Y)0.76
Revenue Growth3.84%
EPS Growth8.83%
CountryUK
Employees9,500
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)108.75
Shares Outstanding215,497,760
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
£1,755.00Price Target Upside12.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)2.21
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 makes money primarily by manufacturing and selling prescription medicines through a portfolio that includes generic injectables, generic oral solid-dose products, and branded medicines in certain markets. A major revenue stream comes from it...
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
Positive
1554.00
Price Trends
1328.21
Positive
1404.42
Positive
1522.72
Negative
Market Momentum
30.42
Negative
69.48
Neutral
78.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HIK, the sentiment is Positive. The current price of 1554 is above the 20-day moving average (MA) of 1412.20, above the 50-day MA of 1328.21, and above the 200-day MA of 1522.72, indicating a neutral trend. The MACD of 30.42 indicates Negative momentum. The RSI at 69.48 is Neutral, neither overbought nor oversold. The STOCH value of 78.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | £30.23B | ― | 6.43% | 1.51% | -1.81% | 17.54% | |
60 Neutral | £69.44M | 2.80 | 7.82% | ― | ― | ― | |
59 Neutral | £3.16B | 6.96 | 15.83% | 4.16% | 3.84% | 8.83% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | £69.45M | -3.21 | 103.62% | ― | 49.81% | 52.94% | |
45 Neutral | £612.99M | -7.21 | 409.00% | ― | 2.94% | -32.00% |
* Healthcare Sector Average
GB:HIK
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Hikma Pharmaceuticals Corporate Events
Business Operations and StrategyStock Buyback
Hikma steps up $250m buyback, cancels shares to tighten free float
Positive
May 18, 2026
Hikma Pharmaceuticals has continued executing its previously announced $250 million share repurchase programme, buying back 553,384 ordinary shares between 11 and 15 May 2026 on the London Stock Exchange and Cboe Europe at prices around 1,400 to 1...
Business Operations and StrategyRegulatory Filings and Compliance
Hikma Updates Registered Office Address in London
Neutral
May 15, 2026
Hikma Pharmaceuticals PLC has updated its registered office address to 10 Portman Square, London, W1H 6AZ, effective immediately. The change is primarily administrative in nature, but it formally updates the company’s official corporate domi...
Business Operations and StrategyStock Buyback
Hikma Advances $250m Buyback, Tightening Share Count
Positive
May 11, 2026
Hikma Pharmaceuticals has continued executing its $250 million share repurchase programme, buying back 388,189 ordinary shares between 5 and 8 May 2026 on the London Stock Exchange and CBOE Europe at prices around 1,402.5 to 1,445 pence per share....
DividendsRegulatory Filings and Compliance
Hikma Executives Add Shares via Dividend Reinvestment Plan
Positive
May 6, 2026
Hikma Pharmaceuticals disclosed that senior executives classified as Persons Discharging Managerial Responsibilities acquired additional ordinary shares through the company’s dividend reinvestment plan. The transactions, executed on 5 May 20...
Business Operations and StrategyStock Buyback
Hikma Advances $250m Share Buyback, Set to Cancel Over 5.3m Shares
Positive
May 5, 2026
Hikma Pharmaceuticals has continued executing its previously announced $250 million share repurchase programme, buying back ordinary shares between 27 April and 1 May 2026 on the London Stock Exchange and Cboe Europe. The latest tranche lifts tota...
Regulatory Filings and Compliance
Hikma Confirms Share Capital and Voting Rights for Disclosure Purposes
Neutral
May 1, 2026
Hikma Pharmaceuticals has confirmed that, as of 30 April 2026, its issued share capital consists of 216,634,000 ordinary shares of 10 pence each carrying voting rights, excluding 12,833,233 treasury shares without voting rights. The company noted ...
Regulatory Filings and Compliance
Hikma Chair Victoria Hull buys £198,828 stake in company shares
Positive
Apr 28, 2026
Hikma Pharmaceuticals PLC disclosed that its Non-Executive Chair, Victoria Hull, has purchased 14,455 ordinary shares in the company at a price of £13.76 per share on 27 April 2026 on the London Stock Exchange. The transaction, valued at appr...
Business Operations and StrategyStock Buyback
Hikma Advances $250m Buyback, Shrinks Share Count Further
Positive
Apr 27, 2026
Hikma Pharmaceuticals has continued executing its $250 million share buyback, repurchasing ordinary shares on the London Stock Exchange and Cboe Europe between 20 and 24 April 2026, with prices generally in the mid-1300 pence range. The company pl...
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
Hikma shareholders back all AGM resolutions, approve dividend and Rule 9 waivers
Positive
Apr 23, 2026
Hikma Pharmaceuticals reported that shareholders approved all 22 resolutions at its 2026 annual general meeting in London, including the re‑election of directors, renewal of auditor and authorities to allot shares, disapply pre‑emption...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Hikma holds 2026 guidance as core units grow and inhalation strategy advances
Positive
Apr 23, 2026
Hikma Pharmaceuticals reaffirmed its full-year 2026 guidance after a strong start across its Injectables, Branded and Hikma Rx businesses, supported by robust demand, recent product launches and expanding manufacturing capacity. The company expect...
Business Operations and StrategyStock Buyback
Hikma Steps Up $250m Buyback as Treasury Shares Climb
Positive
Apr 20, 2026
Hikma Pharmaceuticals has continued executing its previously announced $250 million share buyback, repurchasing 239,194 ordinary shares between 13 and 17 April 2026 on the London Stock Exchange through Citigroup Global Markets. The company intends...
Executive/Board ChangesRegulatory Filings and Compliance
Hikma executives receive shares as long-term incentive awards vest
Neutral
Apr 13, 2026
Hikma Pharmaceuticals has reported that senior executives Julie Hill and Sam Park have received ordinary shares following the vesting of conditional awards granted in April 2024 under the company’s 2023 Long-Term Incentive Plan. The transact...
Business Operations and StrategyStock Buyback
Hikma steps up $250m buyback, cancels further shares
Positive
Apr 13, 2026
Hikma Pharmaceuticals has continued executing its previously announced $250 million share repurchase programme, buying back 140,777 ordinary shares on the London Stock Exchange between 7 and 9 April 2026 at volume‑weighted average prices aro...
Executive/Board Changes
Hikma trims executive share awards amid share price volatility
Neutral
Apr 9, 2026
Hikma Pharmaceuticals has granted conditional share awards to senior executives under its 2023 Long Term Incentive Plan and Deferred Bonus Plan, using a reference share price of £12.71. Awards cover key leaders including the CEO and regional ...
Business Operations and StrategyStock Buyback
Hikma tightens free float as buyback tops 3.9 million shares
Positive
Apr 7, 2026
Hikma Pharmaceuticals has continued executing its $250 million share buyback programme, repurchasing 233,110 ordinary shares between 30 March and 2 April 2026 on the London Stock Exchange and Cboe Europe at prices mainly between 1,237p and 1,284p....
Regulatory Filings and Compliance
Hikma updates market on total voting rights and share capital
Neutral
Apr 1, 2026
Hikma Pharmaceuticals has confirmed that, as of 31 March 2026, its issued share capital consists of 217,930,179 ordinary shares of 10 pence each with voting rights, excluding 12,833,233 shares held in treasury that carry no voting rights. The upda...
Stock BuybackFinancial Disclosures
Hikma Steps Up $250m Buyback, Lifts Treasury Holdings
Positive
Mar 30, 2026
Hikma Pharmaceuticals has continued executing its $250 million share repurchase programme, buying back ordinary shares on the London Stock Exchange and Cboe Europe between 23 and 27 March 2026. Over this disclosure period it acquired several hundr...
Business Operations and StrategyStock Buyback
Hikma Advances $250m Buyback, Tightening Share Count and Boosting EPS
Positive
Mar 23, 2026
Hikma Pharmaceuticals has continued executing its $250 million share repurchase programme, buying back 751,289 ordinary shares between 16 and 20 March 2026 via Citigroup Global Markets, at volume‑weighted average prices in the mid‑1,20...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Hikma Releases 2025 Annual Report and 2026 AGM Notice
Neutral
Mar 18, 2026
Hikma Pharmaceuticals has published its Annual Report and Accounts for the year ended 31 December 2025, alongside the notice of its 2026 Annual General Meeting, making both documents available to shareholders online. The filings have also been sub...
Business Operations and StrategyStock Buyback
Hikma steps up $250m buyback, cancels newly repurchased shares
Positive
Mar 16, 2026
Hikma Pharmaceuticals has continued to execute its $250 million share buyback programme, repurchasing 747,632 ordinary shares on the London Stock Exchange between 9 and 13 March 2026, at volume-weighted average prices ranging from about 1,198p to ...
Regulatory Filings and Compliance
Hikma PDMR Increases Stake with £74,400 Share Purchase
Positive
Mar 11, 2026
Hikma Pharmaceuticals reported that Hussein Arkhagha, a person discharging managerial responsibilities, purchased 6,200 ordinary shares in the company at £12.00 per share on 9 March 2026. The transaction, conducted on the London Stock Exchang...
Stock BuybackRegulatory Filings and Compliance
Hikma Details Weekly Disclosure Plan as $250m Buyback Cuts Share Count
Positive
Mar 9, 2026
Hikma Pharmaceuticals has provided an update on reporting arrangements for its recently launched $250 million share buyback, stating that future repurchases of ordinary shares will be disclosed weekly and no later than the end of the seventh tradi...
Business Operations and StrategyStock Buyback
Hikma Steps Up $250m Buyback With Fresh Share Repurchase
Positive
Mar 6, 2026
Hikma Pharmaceuticals has continued to execute its $250 million share buyback programme, repurchasing 299,445 ordinary shares on 5 March 2026 via Citigroup Global Markets at a volume‑weighted average price of 1,230.08 pence. The company plan...
Business Operations and StrategyStock Buyback
Hikma Advances $250m Buyback With Fresh Purchase and Share Cancellation
Positive
Mar 5, 2026
Hikma Pharmaceuticals has continued executing its previously announced $250 million share repurchase programme, buying 244,980 ordinary shares on 4 March 2026 at a volume-weighted average price of 1,254.07 pence. The company intends to cancel thes...
Stock Buyback
Hikma Cancels Further Shares as $250m Buyback Gathers Pace
Positive
Mar 4, 2026
Hikma Pharmaceuticals has continued executing its recently announced $250 million share buyback, repurchasing 310,739 ordinary shares on 3 March 2026 at a volume‑weighted average price of 1,253.36 pence through Citigroup Global Markets. The ...
Business Operations and StrategyStock Buyback
Hikma Cancels Further Shares as $250m Buyback Gathers Pace
Positive
Mar 3, 2026
Hikma Pharmaceuticals has continued executing its previously announced $250 million share buyback, repurchasing 192,000 ordinary shares on 2 March 2026 on the London Stock Exchange at a volume-weighted average price of 1,257.79 pence. The company ...
Regulatory Filings and Compliance
Hikma Updates Market on Current Voting Share Capital
Neutral
Mar 2, 2026
Hikma Pharmaceuticals PLC has reported that, as of 28 February 2026, its issued share capital consists of 221,606,453 ordinary shares of 10 pence each with voting rights, excluding 12,833,233 shares held in treasury that carry no voting rights. Th...
Business Operations and StrategyStock Buyback
Hikma Advances $250m Buyback With New Share Purchase and Planned Cancellation
Positive
Mar 2, 2026
Hikma Pharmaceuticals has continued execution of its recently announced $250 million share repurchase programme, buying 192,500 ordinary shares on 27 February 2026 through Citigroup Global Markets at a volume-weighted average price of 1,346.66 pen...
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...
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.