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Hikma Pharmaceuticals
(LSE:HIK)
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Rating:59Neutral
Price Target:
1,618.00 p
▲(4.12% Upside)
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 (~25%)
A sustained ~25% group EBITDA margin indicates durable operational leverage and stronger core profitability versus peers. This margin buffer supports reinvestment, resilience through pricing cycles, and the capacity to fund strategic projects without immediate margin erosion, enhancing long-term cash generation potential.
Negative Factors
Weakened cash generation (2025)
A sharp drop in operating and free cash flow and materially weaker cash conversion versus net income reduces financial flexibility. Persistent lower FCF constrains capacity for capital projects, R&D funding, debt reduction or dividends, raising execution risk for multi-year investments like CMO capacity builds.
Read all positive and negative factors
Positive Factors
Negative Factors
High group EBITDA margin (~25%)
A sustained ~25% group EBITDA margin indicates durable operational leverage and stronger core profitability versus peers. This margin buffer supports reinvestment, resilience through pricing cycles, and the capacity to fund strategic projects without immediate margin erosion, enhancing long-term cash generation potential.
Read all positive factors
Hikma Pharmaceuticals (HIK) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£3.26B
Dividend Yield4.16%
Average Volume (3M)631.74K
Price to Earnings (P/E)0.2
Beta (1Y)0.78
Revenue Growth3.84%
EPS Growth8.83%
CountryUK
Employees9,500
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)108.75
Shares Outstanding212,220,280
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)1.37
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
£1,742.50Price Target Upside12.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)2.2
Revenue Forecast (FY)£3.46B
Hikma Pharmaceuticals Business Overview & Revenue Model
Company Description
Hikma Pharmaceuticals PLC is a global pharmaceutical enterprise involved in the creation, production, promotion, and distribution of a wide array of generic, branded, and licensed medicinal solutions. These offerings are presented in various dosag...
How the Company Makes Money
Hikma makes money primarily by selling prescription pharmaceutical products manufactured in-house across its business segments and geographic markets. A major revenue stream is generic medicines (typically oral solid-dose and other non-sterile for...
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 | 3.35B | 3.13B | 2.88B | 2.52B | 2.55B |
| Gross Profit | 1.44B | 1.42B | 1.41B | 1.26B | 1.30B |
| EBITDA | 845.00M | 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 | 1.60B | 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
1457.80
Positive
1396.91
Positive
1488.62
Positive
Market Momentum
26.90
Negative
66.89
Neutral
79.59
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 1496.20, above the 50-day MA of 1457.80, and above the 200-day MA of 1488.62, indicating a bullish trend. The MACD of 26.90 indicates Negative momentum. The RSI at 66.89 is Neutral, neither overbought nor oversold. The STOCH value of 79.59 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 | £32.09B | 31.48 | 6.43% | 1.51% | -1.81% | 17.54% | |
60 Neutral | £80.67M | 15.14 | 7.82% | ― | ― | ― | |
59 Neutral | £3.26B | 0.19 | 15.83% | 4.16% | 3.84% | 8.83% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
41 Neutral | £417.95M | -6.53 | 409.00% | ― | 2.94% | -32.00% | |
41 Neutral | £65.78M | -4.64 | 121.87% | ― | 49.81% | 52.94% |
* Healthcare Sector Average
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Hikma Pharmaceuticals Corporate Events
Regulatory Filings and Compliance
Hikma Updates Market on Total Voting Rights and Share Capital
Neutral
Jul 1, 2026
Hikma Pharmaceuticals has disclosed that, as of 30 June 2026, its issued share capital consists of 212,220,276 ordinary shares of 10 pence each with voting rights, excluding 12,833,233 treasury shares that do not carry voting rights. The company n...
Business Operations and StrategyStock Buyback
Hikma Advances $250m Buyback, Cuts Share Count and Voting Free Float
Positive
Jun 29, 2026
Hikma Pharmaceuticals has continued the second tranche of its $250 million share buyback, repurchasing its own ordinary shares between 22 and 26 June 2026 through J.P. Morgan Securities at prices around 1,470 pence. The company plans to cancel the...
Business Operations and StrategyStock Buyback
Hikma Advances $250m Buyback, Tightens Share Base
Positive
Jun 22, 2026
Hikma Pharmaceuticals has continued the second tranche of its $250 million share repurchase programme, buying back ordinary shares between 15 and 19 June 2026 across multiple trading venues, including the London Stock Exchange. The company intends...
Business Operations and StrategyStock Buyback
Hikma Advances $250m Buyback, Cuts Share Count and Tightens Free Float
Positive
Jun 15, 2026
Hikma Pharmaceuticals has continued the second tranche of its $250 million share repurchase programme, buying back ordinary shares between 8 and 12 June 2026 on the BATE and London Stock Exchange venues at prices around 1,452 to 1,485 pence per sh...
Business Operations and StrategyStock Buyback
Hikma Advances $250m Buyback, Cuts Share Count and Voting Base
Positive
Jun 8, 2026
Hikma Pharmaceuticals has continued the second tranche of its $250 million share repurchase programme, buying back ordinary shares between 1 June and 5 June 2026 across multiple trading venues through J.P. Morgan Securities. The company plans to c...
Business Operations and StrategyExecutive/Board Changes
Hikma Executives Retain Shares as Long-Term Incentive Awards Vest
Positive
Jun 2, 2026
Hikma Pharmaceuticals has disclosed that several senior executives received ordinary shares following the vesting of conditional awards granted on 30 May 2023 under its 2023 Long-Term Incentive Plan and the 2014 Executive Incentive Plan. Chief exe...
Regulatory Filings and Compliance
Hikma updates market on total voting share capital
Neutral
Jun 1, 2026
Hikma Pharmaceuticals has confirmed that, as of 31 May 2026, its issued share capital consists of 214,437,610 ordinary shares of 10 pence each carrying voting rights, excluding a further 12,833,233 shares held in treasury that do not confer voting...
Business Operations and StrategyStock Buyback
Hikma Advances $250m Buyback, Cuts Share Count and Voting Rights
Positive
Jun 1, 2026
Hikma Pharmaceuticals has continued executing the second tranche of its $250 million share repurchase programme, buying 372,440 ordinary shares on the London Stock Exchange between 27 and 29 May 2026 at volume‑weighted average prices around ...
Business Operations and StrategyStock Buyback
Hikma completes first $93m buyback tranche and launches second phase
Positive
May 27, 2026
Hikma Pharmaceuticals has completed the first tranche of its previously announced $250 million share buyback, repurchasing and cancelling 7,076,403 ordinary shares between 26 February and 26 May for a total of £93.1 million at an average pric...
Business Operations and StrategyStock Buyback
Hikma Advances $250m Buyback, Cuts Share Count and Boosts EPS Potential
Positive
May 26, 2026
Hikma Pharmaceuticals has continued executing its $250 million share repurchase programme, buying back 543,889 ordinary shares between 18 and 22 May 2026 across the London Stock Exchange and CBOE Europe. The company plans to cancel these shares, w...
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....
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.