Hikma Pharmaceuticals (HKMPY) AI Stock Analysis

• Market Cap: $5.94B
• Dividend Yield: 3.59%
• Average Volume (3M): 31.00
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.38
• Revenue Growth: 8.65%
• EPS Growth: 88.30%
• Country: US
• Employees: 9,500
• Sector: Healthcare
• Sector Strength: 40
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 1.19
• Shares Outstanding: 110,943,230
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 31
• PEG Ratio: 0.62
• Price to Book (P/B): 2.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.79
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 5.14
• Enterprise Value/Ebitda: 2.54
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: $58.00 ▲(7.33%Upside)

Hikma Pharmaceuticals' strong financial performance is its primary strength, contributing significantly to its stock score. Despite this, bearish technical indicators and market momentum are notable risks, lowering the overall score. The valuation is fair, but monitoring debt levels and cash flow is advised.

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 through three segments: Injectables, Generics, and Branded. The Injectables segment provides generic injectable products primarily for use in hospitals. The Generics segment offers oral and other non-injectable generic products for the retail market. The Branded segment offers branded generics and in-licensed products to retail and hospital markets. The company provides its products in various therapeutic areas, including anti-infective, cardiovascular, central nervous system, diabetes, oncology, pain management, and respiratory. It operates in the United Kingdom, the United States, the Middle East, North Africa, Europe, and internationally. The company was founded in 1978 and is based in London, the United Kingdom.

How the Company Makes Money

Hikma Pharmaceuticals generates revenue through the sale of its pharmaceutical products across its three main business segments: Branded, Injectables, and Generics. The Branded segment focuses on selling branded generic drugs primarily in the Middle East and North Africa. The Injectables segment provides injectable products to hospitals in the US, Europe, and MENA regions, which include anti-infectives, oncology products, and pain management drugs. The Generics segment primarily targets the US market with a portfolio of non-branded generic medications. Revenue is driven by product sales, and the company capitalizes on its extensive manufacturing capabilities, strategic partnerships, and distribution networks to ensure market penetration and growth. Significant factors contributing to its earnings include a strong pipeline of new product launches, strategic acquisitions, and ongoing investment in research and development to expand its product offerings.

Hikma Pharmaceuticals Financial Statement Overview

Summary

Hikma Pharmaceuticals shows strong financial health with notable revenue and profit growth, robust margins, and a stable balance sheet. However, increasing debt levels and a decline in operating cash flow require attention.

Income Statement

Hikma Pharmaceuticals demonstrates strong revenue growth, with a notable increase from $2.875 billion in 2023 to $3.127 billion in 2024, marking a revenue growth rate of 8.75%. Gross profit margin remains robust at 45.26% in 2024. The company also shows improvement in profitability with a net profit margin of 11.48% compared to 6.61% the previous year. EBIT and EBITDA margins have increased to 19.57% and 23.25%, respectively, indicating efficient cost management and operational effectiveness.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.57, showing manageable leverage levels. Return on Equity (ROE) improved to 15.54%, highlighting effective use of equity. The equity ratio stands at 44.99%, providing a solid equity base. However, the increase in total debt from $1.191 billion to $1.306 billion requires monitoring.

Cash Flow

Cash flow analysis shows a slight decrease in operating cash flow from $608 million in 2023 to $564 million in 2024, but free cash flow remains strong at $329 million. The free cash flow to net income ratio is 0.92, indicating efficient cash conversion. The decline in free cash flow from the previous year suggests a need to optimize capital expenditure management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.13B	2.88B	2.52B	2.55B	2.34B
Gross Profit	1.42B	1.41B	1.24B	1.30B	1.20B
EBITDA	739.00M	559.00M	493.00M	766.00M	747.00M
Net Income	359.00M	190.00M	188.00M	421.00M	431.00M
Balance Sheet
Total Assets	5.13B	4.68B	4.47B	4.37B	4.13B
Cash, Cash Equivalents and Short-Term Investments	213.00M	229.00M	270.00M	426.00M	323.00M
Total Debt	1.31B	1.19B	1.28B	846.00M	932.00M
Total Liabilities	2.81B	2.47B	2.32B	1.91B	1.99B
Stockholders Equity	2.31B	2.20B	2.13B	2.45B	2.13B
Cash Flow
Free Cash Flow	329.00M	404.00M	305.00M	409.00M	240.00M
Operating Cash Flow	564.00M	608.00M	530.00M	638.00M	464.00M
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 Price: 54.04
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HKMPY, the sentiment is Positive. The current price of 54.04 is below the 20-day moving average (MA) of 54.28, below the 50-day MA of 55.26, and above the 200-day MA of 51.76, indicating a neutral trend. The MACD of -0.60 indicates Positive momentum. The RSI at 47.15 is Neutral, neither overbought nor oversold. The STOCH value of 47.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HKMPY.

Hikma Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDY	75 Outperform	$12.18B	18.03	18.36%	0.65%	14.23%	-0.84%
HKMPY	67 Neutral	$5.94B	16.66	15.87%	3.59%	8.65%	88.30%
PRGO	63 Neutral	$3.71B	―	-3.64%	4.27%	-4.85%	-4290.31%
AMRX	58 Neutral	$2.50B	―	106.97%	―	13.42%	92.50%
VTRS	54 Neutral	$10.66B	―	-21.25%	5.18%	-6.88%	-6809.78%
TEVA	54 Neutral	$18.48B	―	-18.98%	―	3.38%	-175.90%
Sector *	52 Neutral	$7.34B	-0.07	-63.86%	2.34%	16.17%	0.23%