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Hikma Pharmaceuticals PLC (HKMPY)
OTHER OTC:HKMPY
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Hikma Pharmaceuticals
(OTC:HKMPY)
Rating:71Outperform
Price Target:
$52.00
▲(7.22% Upside)
Hikma Pharmaceuticals (HKMPY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.34B
Dividend Yield3.17%
Average Volume (3M)43.00
Price to Earnings (P/E)14.4
Beta (1Y)0.35
Revenue Growth6.96%
EPS Growth30.84%
CountryUS
Employees9,500
SectorHealthcare
Sector Strength43
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)2.17
Shares Outstanding110,943,230
10 Day Avg. Volume61
30 Day Avg. Volume43
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.39
Enterprise Value/Revenue2.38
Enterprise Value/Gross Profit5.41
Enterprise Value/Ebitda10.05
Forecast
1Y Price Target
$52.00Price Target Upside7.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Hikma Pharmaceuticals Business Overview & Revenue Model
Company DescriptionHikma Pharmaceuticals PLC is a multinational pharmaceutical company headquartered in London, UK, specializing in the development, manufacture, and marketing of a diverse range of generic and branded pharmaceuticals. The company operates primarily in three segments: Injectables, Branded, and Generics, offering a wide portfolio of products across various therapeutic areas, including oncology, respiratory, and cardiovascular diseases. Hikma is committed to improving patient access to quality medicines and focuses on innovation and operational excellence to enhance its product offerings.
How the Company Makes MoneyHikma Pharmaceuticals generates revenue through multiple key streams, primarily by selling its generic and branded pharmaceutical products across various markets. The Injectables segment, which includes a comprehensive range of injectable medications, is particularly significant and has been a major driver of the company's growth due to the high demand for these products in hospitals and healthcare settings. The Branded segment contributes to revenue through established and new brand medications in emerging markets, while the Generics segment focuses on cost-effective alternatives to branded drugs in developed markets. Additionally, Hikma has formed strategic partnerships and collaborations with other pharmaceutical companies, expanding its market reach and enhancing its product pipeline, which further supports its revenue growth. The company also benefits from economies of scale in manufacturing and distribution, enabling it to maintain competitive pricing and improve profit margins.
Hikma Pharmaceuticals Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: -3.44%|
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with strong revenue growth and strategic advancements offset by some declines in operating profit and cash flow. There are clear strategies in place for future growth, but immediate challenges such as FX headwinds and margin pressures were noted.Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Hikma delivered a 6% revenue growth driven by robust volumes across all business segments and regions, with recent launches and the benefit of the fully integrated Xellia acquisition contributing to growth.
Injectables Segment Success
Injectables segment saw 12% core revenue growth year-on-year, with strong performances in Europe (26% growth) and MENA (16% growth).
Strategic Partnerships and Pipeline Expansion
Hikma signed new strategic partnerships and made strides in strengthening its pipeline and enhancing manufacturing capabilities.
Branded Business Growth
The Branded business achieved 4% top-line growth and 3% operating profit growth, with 14 product launches and 36 regulatory filings in the first half of 2025.
Low Leverage Ratio
The company maintains a healthy balance sheet with a leverage ratio of 1.7x net debt to core EBITDA.
Positive Market Developments in Rx Division
Hikma Rx saw solid performance with good growth from inhalation products, launching 3 new products, and submitting 3 new regulatory filings.
Negative Updates
Decline in Core Operating Profit
Core operating profit declined by 7% due to regional and product mix, FX headwinds, and strong comparative performance in H1 2024.
Decrease in Operating Cash Flow
Operating cash flow decreased to $161 million from $198 million in the 2024 comparable period, primarily due to the timing of tax payments.
Margin Pressure in Injectables
Core operating margin for Injectables declined to 30% from 36.3% in H1 2024, affected by product and geographic mix changes and euro appreciation costs.
Price Erosion in Rx Business
The Rx division experienced expected levels of price erosion in the mid- to high single digits, contributing to an 11% year-on-year contraction in gross profit.
Company Guidance
During the 2025 half-year results presentation, Hikma provided guidance indicating a promising outlook for the remainder of the year. The company expects full-year revenue growth of 4% to 6% and core operating profit between $730 million and $770 million. Despite a 7% decline in core operating profit to $373 million in the first half, driven by regional and product mix challenges and FX headwinds, the company remains optimistic. Injectables saw a robust 12% core revenue growth, although margins decreased to 30% from 36.3% due to product mix and euro appreciation. The Branded segment achieved a 4% revenue increase, while Rx, formerly Generics, managed stable performance despite mid- to high single-digit price erosion. Hikma's strong balance sheet, with a leverage ratio of 1.7x net debt to core EBITDA, and strategic investments in manufacturing and R&D underpin their confidence in achieving the 2025 guidance.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.85
Very Positive
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.78
Positive
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.80
Positive
| 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
Negative
48.50
Price Trends
53.89
Negative
53.06
Negative
51.89
Negative
Market Momentum
-1.65
Positive
37.42
Neutral
31.35
Neutral
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 48.5 is below the 20-day moving average (MA) of 51.59, below the 50-day MA of 53.89, and below the 200-day MA of 51.89, indicating a bearish trend. The MACD of -1.65 indicates Positive momentum. The RSI at 37.42 is Neutral, neither overbought nor oversold. The STOCH value of 31.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HKMPY.
Hikma Pharmaceuticals Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $5.34B | 14.43 | 15.41% | 3.17% | 6.96% | 30.84% | |
71 Outperform | $11.65B | 17.39 | 18.36% | 0.64% | 13.03% | -0.49% | |
58 Neutral | $2.95B | 1,467.19 | 106.97% | ― | 9.81% | ― | |
57 Neutral | $11.80B | ― | -19.77% | 4.49% | -7.47% | -438.39% | |
55 Neutral | $19.02B | ― | -2.31% | ― | 2.43% | 64.37% | |
51 Neutral | $3.17B | ― | -1.32% | 4.92% | -2.32% | 35.46% | |
51 Neutral | $7.44B | -0.20 | -46.00% | 2.27% | 22.80% | -2.27% |
* Healthcare Sector Average
Performance Comparison
HKMPY
Hikma Pharmaceuticals
48.50
-3.25
-6.28%
RDY
Dr Reddy's Laboratories
14.11
-2.11
-13.01%
VTRS
Viatris
10.69
-0.45
-4.04%
PRGO
Perrigo Company
23.03
-3.45
-13.03%
TEVA
Teva Pharmaceutical
17.54
-0.79
-4.31%
AMRX
Amneal Pharmaceuticals
9.39
1.48
18.71%
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.