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Hikma Pharmaceuticals PLC (GB:HIK)
LSE:HIK
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Hikma Pharmaceuticals (HIK) AI Stock Analysis

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GB:HIK

Hikma Pharmaceuticals

(LSE:HIK)

Rating:73Outperform
Price Target:
2,263.00p
▲(11.59%Upside)
Hikma Pharmaceuticals' strong financial performance and positive corporate events are the primary contributors to the overall score. Stable profitability, efficient cash management, and strategic initiatives support the company's growth prospects. Technical analysis and valuation provide a balanced view, while the lack of recent earnings call data limits additional insights.
Positive Factors
Earnings Growth
Hikma delivered a top of range FY24 print and successfully navigated a tough comp year, delivering a 6% beat to core EBIT compared to guidance at the start of 2024.
Market Demand
Strong demand in European and MENA markets, while North America benefits from good demand for the recently launched liraglutide injection and the contribution from the newly acquired Xellia portfolio.
Negative Factors
Interest Charges
Forecasts have been updated to reflect a 2% reduction to FY25 core EBIT and a 5% reduction to adjusted EPS due to higher interest charges.
Sales Mix Impact
The company expects the phasing and mix of sales to impact margins in the first half, although it maintains a mid-30s core operating margin for FY25.

Hikma Pharmaceuticals (HIK) vs. iShares MSCI United Kingdom ETF (EWC)

Hikma Pharmaceuticals Business Overview & Revenue Model

Company DescriptionHikma Pharmaceuticals (HIK) is a multinational pharmaceutical company that develops, manufactures, and markets a broad range of branded and non-branded generic and in-licensed pharmaceutical products. Serving both the branded and generic pharmaceutical sectors, the company focuses on critical therapeutic areas such as cardiovascular, respiratory, oncology, and pain management. Hikma operates in multiple regions including the United States, the Middle East and North Africa (MENA), and Europe, positioning itself as a key player in providing accessible and affordable medications globally.
How the Company Makes MoneyHikma Pharmaceuticals generates revenue primarily through the sale of its pharmaceutical products across three main business segments: Injectables, Generics, and Branded. The Injectables segment is a significant contributor to revenue, driven by the production and distribution of generic injectable products used in hospitals. The Generics segment focuses on the development and sale of non-branded generic drugs, primarily in the United States, catering to a wide range of therapeutic categories. The Branded segment involves the sale of branded generics and in-licensed products across the MENA region, leveraging Hikma's strong regional presence and brand recognition. Additionally, the company benefits from strategic partnerships and collaborations that help expand its product portfolio and market reach, contributing to its overall earnings.

Hikma Pharmaceuticals Financial Statement Overview

Summary
Hikma Pharmaceuticals demonstrates strong financial health across income, balance sheet, and cash flow statements. The company shows consistent revenue and profit growth with stable profitability margins, efficient cash generation, and manageable debt levels.
Income Statement
85
Very Positive
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
78
Positive
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
72
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.13B2.88B2.52B2.55B2.34B
Gross Profit1.42B1.41B1.26B1.30B1.21B
EBITDA787.00M791.00M485.00M744.00M654.00M
Net Income359.00M190.00M188.00M421.00M431.00M
Balance Sheet
Total Assets5.13B4.68B4.47B4.37B4.13B
Cash, Cash Equivalents and Short-Term Investments213.00M229.00M292.00M450.00M347.00M
Total Debt1.31B1.19B1.28B846.00M932.00M
Total Liabilities2.81B2.47B2.32B1.91B1.99B
Stockholders Equity2.31B2.20B2.13B2.45B2.13B
Cash Flow
Free Cash Flow399.00M439.00M392.00M493.00M292.00M
Operating Cash Flow564.00M608.00M530.00M638.00M464.00M
Investing Cash Flow-381.00M-333.00M-607.00M-238.00M-283.00M
Financing Cash Flow-188.00M-337.00M-58.00M-287.00M-298.00M

Hikma Pharmaceuticals Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2028.00
Price Trends
50DMA
2050.98
Negative
100DMA
2010.02
Positive
200DMA
2002.31
Positive
Market Momentum
MACD
-10.03
Negative
RSI
54.27
Neutral
STOCH
51.63
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 2028 is above the 20-day moving average (MA) of 1989.60, below the 50-day MA of 2050.98, and above the 200-day MA of 2002.31, indicating a neutral trend. The MACD of -10.03 indicates Negative momentum. The RSI at 54.27 is Neutral, neither overbought nor oversold. The STOCH value of 51.63 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

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
£4.40B15.7215.79%0.15%5.83%83.35%
73
Outperform
£200.07M5.5033.70%190.11%-0.17%2591.96%
67
Neutral
£32.79B22.708.80%148.18%-0.61%39.00%
53
Neutral
£386.08M-369.20%4.50%74.32%
50
Neutral
AU$2.62B3.32-57.47%2.40%36.73%13.67%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:HIK
Hikma Pharmaceuticals
2,028.00
187.94
10.21%
GB:ANCR
Animalcare
263.00
-5.76
-2.14%
GB:AGY
Allergy Therapeutics
8.10
3.30
68.75%
GB:HLN
Haleon PLC
365.00
18.33
5.29%

Hikma Pharmaceuticals Corporate Events

Private Placements and Financing
Hikma Pharmaceuticals Issues $500 Million in Guaranteed Notes
Positive
Jul 7, 2025

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.

Regulatory Filings and Compliance
Hikma Pharmaceuticals Discloses Managerial Share Disposal
Neutral
Jun 9, 2025

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.

Regulatory Filings and Compliance
Hikma Pharmaceuticals Discloses Share Disposal by Key Executive
Neutral
Jun 5, 2025

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.

Executive/Board Changes
Hikma Pharmaceuticals Announces Executive Share Vesting Under Incentive Plan
Neutral
Jun 3, 2025

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.

Business Operations and StrategyFinancial Disclosures
Hikma Pharmaceuticals Receives Rating Upgrade from Fitch
Positive
May 29, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Hikma Pharmaceuticals Executives Involved in Share Pledge Transactions
Neutral
May 20, 2025

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.

Business Operations and StrategyFinancial Disclosures
Hikma Pharmaceuticals Projects Strong Growth and Rebrands Generics Business
Positive
May 15, 2025

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.

DividendsBusiness Operations and Strategy
Hikma Pharmaceuticals Executives Acquire Shares Under DRIP
Positive
May 8, 2025

Hikma Pharmaceuticals announced that several of its Persons Discharging Managerial Responsibility (PDMRs) acquired ordinary shares in the company through a dividend reinvestment plan. This acquisition, involving key figures such as CEO Riad Mishlawi, reflects a strategic move to strengthen managerial investment in the company, potentially enhancing stakeholder confidence and aligning management interests with shareholder value.

Business Operations and Strategy
Hikma Pharmaceuticals’ Credit Rating Upgraded by S&P
Positive
May 8, 2025

S&P has upgraded Hikma Pharmaceuticals PLC’s long-term issuer credit rating and its $500 million notes to ‘BBB’ from ‘BBB-‘, citing the company’s strong business momentum and stable growth prospects. This upgrade reinforces Hikma’s solid market position and highlights its consistent profitability and cash generation capabilities.

Legal Proceedings
Hikma Pharmaceuticals Settles Xyrem® Antitrust Lawsuits in the U.S.
Neutral
May 8, 2025

Hikma Pharmaceuticals has announced a preliminary settlement agreement to resolve the majority of antitrust class action lawsuits related to its product Xyrem® (sodium oxybate) in the United States. The agreement, which is subject to court approval, involves Hikma paying up to $50 million in cash. This settlement aims to protect the company’s interests and provide clarity to stakeholders, without admitting any wrongdoing. The settlement highlights Hikma’s commitment to facilitating access to lower-cost generic medicines, potentially impacting its market positioning and stakeholder relations.

Private Placements and FinancingBusiness Operations and Strategy
Hikma Pharmaceuticals Announces Managerial Share Transactions
Neutral
Apr 30, 2025

Hikma Pharmaceuticals PLC announced a notification regarding transactions by key managerial personnel, including the Executive Chairman, Executive Vice Chairman, and a Non-Executive Director. These transactions involve a pledge of 600,000 ordinary shares by Darhold Limited, a company associated with these executives, in favor of EFG International Bank. This move reflects significant financial maneuvers within the company, potentially impacting its market dynamics and stakeholder interests.

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.Date of analysis: Jul 25, 2025