Hikma Pharmaceuticals PLC (HKMPY)
OTHER OTC:HKMPY
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Hikma Pharmaceuticals
(OTC:HKMPY)
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Rating:62Neutral
Price Target:
$41.00
▼(-2.43% Downside)
Action:Reiterated
Date: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
Strong group EBITDA margin (~25%)
A sustained group EBITDA around 25% indicates durable underlying profitability and operational leverage versus peers. Higher margins provide capacity to fund R&D, buybacks and debt service, increasing resilience through cycles and supporting reinvestment in capacity and pipeline over the medium term.
Negative Factors
Weak free cash flow and cash conversion
Weakened operating cash flow and FCF that cover under half of net income indicate poor cash conversion. That raises the risk that reported profits won't fund debt reduction, capital projects or shareholder returns, forcing either higher borrowing or curtailed reinvestment over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong group EBITDA margin (~25%)
A sustained group EBITDA around 25% indicates durable underlying profitability and operational leverage versus peers. Higher margins provide capacity to fund R&D, buybacks and debt service, increasing resilience through cycles and supporting reinvestment in capacity and pipeline over the medium term.
Read all positive factors
Hikma Pharmaceuticals (HKMPY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.14B
Dividend Yield4.04%
Average Volume (3M)576.00
Price to Earnings (P/E)7.1
Beta (1Y)0.48
Revenue Growth7.31%
EPS Growth12.55%
CountryUS
Employees9,500
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)3.64
Shares Outstanding108,075,570
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/Revenue1.67
Enterprise Value/Gross Profit4.01
Enterprise Value/Ebitda6.31
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 makes money by selling pharmaceutical products across its main operating segments: (1) Injectables: revenue is generated from the manufacture and sale of sterile injectable medicines (including generic injectables) to hospital systems, group...
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
Positive
42.02
Price Trends
35.73
Positive
37.79
Positive
40.87
Negative
Market Momentum
0.70
Positive
62.09
Neutral
76.97
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 42.02 is above the 20-day moving average (MA) of 38.11, above the 50-day MA of 35.73, and above the 200-day MA of 40.87, indicating a neutral trend. The MACD of 0.70 indicates Positive momentum. The RSI at 62.09 is Neutral, neither overbought nor oversold. The STOCH value of 76.97 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $11.47B | 23.89 | 11.76% | 0.64% | -1.06% | -26.67% | |
62 Neutral | $4.14B | 7.06 | 15.83% | 4.04% | 7.31% | 12.55% | |
61 Neutral | $19.22B | 22.12 | -1.97% | 3.99% | 2.14% | 91.93% | |
61 Neutral | $40.04B | 23.59 | 20.79% | ― | 5.76% | ― | |
60 Neutral | $3.80B | 16.36 | -144.72% | ― | 7.62% | ― | |
52 Neutral | $1.48B | -0.83 | -50.65% | 8.48% | -3.62% | -932.84% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
HKMPY
Hikma Pharmaceuticals
39.72
-13.76
-25.74%
RDY
Dr Reddy's Laboratories
13.63
-0.63
-4.40%
VTRS
Viatris
16.59
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104.76%
PRGO
Perrigo Company
11.16
-14.00
-55.65%
TEVA
Teva Pharmaceutical
34.32
17.77
107.37%
AMRX
Amneal Pharmaceuticals
12.23
4.96
68.23%
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.