Hikma Pharmaceuticals PLC (HKMPY)
OTHER OTC:HKMPY
Top Page
Hikma Pharmaceuticals
(OTC:HKMPY)
Select Model
Select Model
Rating:62Neutral
Price Target:
$35.00
▼(-16.71% Downside)
Action:ReiteratedDate:03/03/26
The score is driven primarily by mixed financial quality: improving earnings and margins are offset by deteriorating cash flow and higher leverage. Technicals are a notable drag given the strong downtrend and weak momentum signals. Valuation (low P/E and high dividend yield) and a generally constructive earnings-call outlook, despite near-term margin pressure, provide partial support.
Positive Factors
Diversified business model
Hikma's multi-segment model (injectables, generics, branded) and global distribution reduce single-market dependency and smooth revenue cycles. Over 2–6 months this structural diversification helps absorb regional reimbursement shifts and patent expiries while supporting cross-segment reinvestment.
Negative Factors
Weak cash conversion
Earnings quality is weakened by poor cash conversion: rising gap between net income and free cash flow limits capacity to self-fund capex, debt paydown or buybacks. Over the medium term this raises refinancing and flexibility risks if cash generation doesn't recover with margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified business model
Hikma's multi-segment model (injectables, generics, branded) and global distribution reduce single-market dependency and smooth revenue cycles. Over 2–6 months this structural diversification helps absorb regional reimbursement shifts and patent expiries while supporting cross-segment reinvestment.
Read all positive factors
Hikma Pharmaceuticals (HKMPY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.80B
Dividend Yield4.04%
Average Volume (3M)576.00
Price to Earnings (P/E)11.5
Beta (1Y)0.47
Revenue Growth7.03%
EPS Growth31.08%
CountryUS
Employees9,500
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)1.49
Shares Outstanding108,946,170
10 Day Avg. Volume104
30 Day Avg. Volume576
Financial Highlights & Ratios
PEG Ratio0.89
Price to Book (P/B)1.78
Price to Sales (P/S)1.38
P/FCF Ratio28.48
Enterprise Value/Market Cap1.35
Enterprise Value/Revenue1.54
Enterprise Value/Gross Profit3.69
Enterprise Value/Ebitda5.82
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 Pharmaceuticals generates revenue through multiple key streams. The Injectables segment is a significant contributor, providing high-margin products that are essential for hospitals and healthcare facilities. The Generics segment offers a va...
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 outlines a clear strategic reset with substantial near-term investment (R&D, sales/marketing, capacity) and reorganizational changes that are expected to depress some margins and delay certain revenue ramps through 2026. At the same time, the company presented multiple concrete positives: solid group EBITDA (25%), a recovered Rx division (~20% margins and strong EBIT history), meaningful branded and MENA growth, an expanding RTU pipeline with encouraging early traction (TYZAVAN), a plan to materially grow CMO over the medium term, and a GBP 250m buyback. Management expresses confidence in returning injectables to stronger growth by 2027–2028 once investments and capacity projects (e.g., Bedford) come online. Overall, strategic actions and long-term prospects appear to outweigh near-term operational headwinds.Positive Updates
Strong overall profitability
Group EBITDA margin at ~25%, ahead of many competitors targeting ~22%, indicating robust overall profitability and cost structure.
Negative Updates
Injectables margin and near-term weakness
Injectables margins have reset materially — described as moving from mid-30s historically to high-20s now, with a cited near-term 2–3 percentage-point headwind driven by higher R&D, sales & marketing and CMO dynamics; management expects recovery only from 2027/2028.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong overall profitability
Group EBITDA margin at ~25%, ahead of many competitors targeting ~22%, indicating robust overall profitability and cost structure.
Read all positive updates
Company Guidance
Management reiterated confidence in FY26 guidance while warning of near‑term investment‑led margin pressure: group EBITDA is c.25% (versus peers targeting ~22%), R&D is being centralized and ramped to c.5–6% of sales (management cited ~$45m y/y uplift in R&D and ~GBP15m extra injectables R&D), injectables margins have been reset from mid‑30s to the high‑20s (the prior 30% “floor” was removed), and injectables are expected to bottom in 2026 with recovery from 2027 and stronger CMO and RTU-driven growth from 2028 (Bedford/Xellia capacity planned online in 2028); pipeline metrics highlighted TYZAVAN and ~15 RTU products, vancomycin market ~41m grams (13% converted already), Europe injectables grew ~23% this year, Rx is delivering ~20% margins with CMO today ~10% of revenue (targeting ~20% by 2030), branded MENA growth is being guided at ~7–8% with six new biosimilars signed, the group still views an aspirational GBP5bn revenue target for 2030 as achievable, and the board has approved a GBP250m share buyback this year.Hikma Pharmaceuticals Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
67
Positive
Cash Flow
52
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.36B | 3.13B | 2.88B | 2.52B | 2.55B |
| Gross Profit | 1.34B | 1.42B | 1.41B | 1.24B | 1.30B |
| EBITDA | 837.95M | 727.00M | 559.00M | 688.00M | 766.00M |
| Net Income | 402.94M | 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 | 354.00M | 213.00M | 229.00M | 292.00M | 450.00M |
| Total Debt | 1.65B | 1.31B | 1.19B | 1.28B | 846.00M |
| Total Liabilities | 3.06B | 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 | 162.38M | 329.00M | 404.00M | 305.00M | 409.00M |
| Operating Cash Flow | 359.84M | 564.00M | 608.00M | 530.00M | 638.00M |
| Investing Cash Flow | -394.92M | -381.00M | -333.00M | -607.00M | -238.00M |
| Financing Cash Flow | 58.14M | -188.00M | -337.00M | -58.00M | -287.00M |
Hikma Pharmaceuticals Technical Analysis
Negative
42.02
Price Trends
36.72
Negative
38.54
Negative
42.90
Negative
Market Momentum
-0.36
Negative
55.51
Neutral
87.43
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HKMPY, the sentiment is Negative. The current price of 42.02 is above the 20-day moving average (MA) of 33.30, above the 50-day MA of 36.72, and below the 200-day MA of 42.90, indicating a neutral trend. The MACD of -0.36 indicates Negative momentum. The RSI at 55.51 is Neutral, neither overbought nor oversold. The STOCH value of 87.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HKMPY.
Hikma Pharmaceuticals Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $10.73B | 21.72 | 16.00% | 0.64% | 10.63% | 6.35% | |
62 Neutral | $3.80B | 11.48 | 15.83% | 4.04% | 7.03% | 31.08% | |
61 Neutral | $35.39B | 25.43 | 20.09% | ― | -0.25% | ― | |
56 Neutral | $15.62B | -4.15 | -22.99% | 3.99% | -6.40% | -320.23% | |
54 Neutral | $4.00B | 54.80 | -67.91% | ― | 9.50% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $1.49B | -1.35 | -35.16% | 8.48% | -2.55% | 66.00% |
* Healthcare Sector Average
HKMPY
Hikma Pharmaceuticals
35.34
-8.00
-18.46%
RDY
Dr Reddy's Laboratories
13.24
0.29
2.20%
VTRS
Viatris
13.57
6.13
82.32%
PRGO
Perrigo Company
10.83
-13.36
-55.23%
TEVA
Teva Pharmaceutical
30.52
16.36
115.54%
AMRX
Amneal Pharmaceuticals
12.71
5.28
71.06%
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.