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Hypera SA (HYPMY)
OTHER OTC:HYPMY
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Hypera SA
(OTC:HYPMY)
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Rating:65Neutral
Price Target:
$4.50
▲(5.88% Upside)
Hypera SA's overall stock score reflects a stable financial position with strong cash flow but declining revenue growth and margins. Technical analysis indicates a bearish trend, and the valuation suggests the stock may be overvalued. The absence of significant earnings call insights or corporate events leaves the focus on financial performance and technical indicators.
Hypera SA (HYPMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.73B
Dividend Yield0.97%
Average Volume (3M)475.00
Price to Earnings (P/E)20.6
Beta (1Y)0.52
Revenue Growth-26.90%
EPS Growth-60.69%
CountryUS
Employees10,481
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.12
Shares Outstanding633,420,840
10 Day Avg. Volume1,217
30 Day Avg. Volume475
Financial Highlights & Ratios
PEG Ratio-0.50
Price to Book (P/B)0.99
Price to Sales (P/S)1.61
P/FCF Ratio6.79
Enterprise Value/Market Cap1.69
Enterprise Value/Revenue0.69
Enterprise Value/Gross Profit1.24
Enterprise Value/Ebitda3.27
Forecast
1Y Price Target
$4.50Price Target Upside5.88% Upside
Rating ConsensusHold
Number of Analyst Covering0
Hypera SA Business Overview & Revenue Model
Company DescriptionHypera S.A. operates as a pharmaceutical company in Brazil. It offers prescription products under the Adacne, Addera, apri, AmpliumG, please, Celestamine, Celestone, Celestone Soluspan, Cizax, deciprax, Derive C Micro, Micro Drift, Dermotil Fusid, Digedrat, diprogent, Diprosalic, Diprosone, diprospan, Emprol XR, Flow, Garasone, Halobex, Lipanon, moon, Lydian, macrodantin, MaxSulid, milgamma, Mioflex A, nesina, Novotram, oximax, peridal, Peridal Suspension, PredSim, pressaliv, Quadriderm, Rizi, Rizi M, softalm, tacroz, tinodin, umma, and velunid brands. The company also provides dermo-cosmetics products under the Mantecorp Skincare brands; and consumer health products under the Apracur, Benegrip, Coristina d, Engov, Epocler, Estomazil, and other brands. In addition, it offers nutritional and vitamin supplement products under the Tamarine, Vitasay, Biotônico Fontoura, and Zero-Cal brands; and similar and generic medicines under the Neo Química, Sodium Diclofenac, Hydroxyzine, Dipyron, Ibuprofen, Losartan Potassium, Mal Dexchlorpheniramine, Naproxene, Paracetamol, Simethicon, Loratadine, Omeprazole, Tadalaphyl, and Desogestrel brand names. The company was formerly known as Hypermarcas S.A. and changed its name to Hypera S.A. in February 2018. Hypera S.A. is based in São Paulo, Brazil.
How the Company Makes MoneyHypera SA generates revenue through the sale of its pharmaceutical and consumer health products. The company's revenue model is primarily based on manufacturing and distributing prescription drugs and over-the-counter medications. Key revenue streams include sales from branded generics, which are crucial in emerging markets like Brazil due to their affordability and accessibility. Hypera SA also benefits from its consumer health segment, which includes dietary supplements and personal care products. Strategic partnerships with healthcare providers and retailers enhance its distribution network, ensuring widespread availability of its products. Additionally, investments in research and development contribute to the introduction of innovative products, further driving sales and profitability.
Hypera SA Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. On the positive side, Hypera Pharma reported significant sell-out growth, successful product launches, and strong cash flow. The company's sustainability efforts were also recognized. However, these were offset by a decline in net revenue and gross margins due to the working capital optimization strategy. Additionally, there were challenges in the generics market. Overall, the sentiment is balanced, with both positive achievements and significant challenges.Q4-2024 Updates
Positive Updates
Sell-out Growth in 2024
Hypera Pharma's sell-out increased by 9% in 2024, with a significant 26% growth in the institutional non-retail market and 8% in the retail market.
Successful Product Launches
The company launched over 50 new products in 2024, including significant line extensions in consumer health, skincare, cardiology, CNS, and respiratory segments.
Record Operational Cash Flow
Hypera Pharma achieved its highest operational cash flow in history, exceeding BRL2.5 billion, reflecting improvements in capital and working capital investments.
Sustainability and Governance Recognition
The company was recognized in the FTSE4Good and S&P Global Sustainability Yearbook, highlighting its commitment to sustainable practices and corporate governance.
Working Capital Optimization Progress
Hypera Pharma advanced its working capital optimization strategy, achieving 80% of the planned adjustments by early 2025, improving operational cash generation.
Negative Updates
Decline in Net Revenue
The company reported a 6% decline in net revenue for 2024 compared to 2023, primarily due to the working capital optimization strategy.
Decrease in Gross Margins
Gross margins decreased by four percentage points in 2024 and 10 percentage points for the fourth quarter, due to lower operational leverage and a change in product mix.
Reduction in EBITDA and Net Income
EBITDA margin for the year was 28%, with a 19% reduction in net income from continuing operations, largely impacted by the working capital optimization process.
Challenges in Generics Market
The generics market faced increased competition, leading to pressure on pricing and market share, representing a challenge for the company.
Company Guidance
In the Hypera Pharma earnings call for Q4 2024, the company provided guidance highlighting significant growth metrics and strategic initiatives. Sell-out growth was reported at 9% for the year, with a notable 26% increase in the institutional non-retail market and an 8% rise in the retail market. Despite these gains, net revenue decreased by 6% to BRL7.4 billion, primarily due to a working capital optimization strategy initiated in Q3 2024. This strategy aims to enhance operational cash flow by reducing client inventories and account receivable days, achieving about 80% of the intended adjustments with an average sales term of 70 days. The company invested over BRL2.3 billion in marketing, innovation, and production capacity, including BRL1.3 billion in marketing and BRL550 million in research and innovation, with over 50 new product launches. EBITDA margin stood at 28%, with a net income reduction of 19% due to lower operational leverage. Additionally, Hypera Pharma maintained a strong focus on sustainability, being recognized in indices like FTSE4Good and B3 IDIVERSA. The company anticipates normalizing operations and combining sustainable growth with better returns on invested capital by May 2025.Hypera SA Financial Statement Overview
Summary
Hypera SA demonstrates a stable financial position with some areas of concern. The income statement shows profitability but declining margins and revenue growth. The balance sheet is stable with moderate leverage, but the declining ROE suggests efficiency issues. The cash flow statement is strong, with positive free cash flow growth and good cash generation metrics. The company should focus on reversing the revenue decline and improving operational efficiency to enhance profitability.Income Statement
Hypera SA's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth rate, which is concerning. However, the company maintains a reasonable gross profit margin of 56.39% and a net profit margin of 12.08%. The EBIT and EBITDA margins are also decent at 16.95% and 21.23%, respectively. Despite the revenue decline, the company remains profitable, but the decreasing margins over the years suggest potential challenges in maintaining profitability.65
Positive
Balance Sheet
The balance sheet of Hypera SA reflects a stable financial position with a debt-to-equity ratio of 0.79, indicating moderate leverage. The return on equity (ROE) is 6.73%, which has decreased over the years, suggesting a decline in efficiency in generating returns from equity. The equity ratio stands at 49.49%, showing a healthy proportion of equity financing. Overall, the balance sheet is stable, but the declining ROE is a point of concern.70
Positive
Cash Flow
Hypera SA's cash flow statement shows positive trends with a free cash flow growth rate of 11.70% in the TTM period. The operating cash flow to net income ratio is 0.56, and the free cash flow to net income ratio is 0.69, indicating strong cash generation relative to net income. The company has improved its free cash flow position, which is a positive sign for liquidity and operational efficiency.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.66B | 7.44B | 7.91B | 7.55B | 5.94B | 4.09B |
| Gross Profit | 3.74B | 4.38B | 5.00B | 4.76B | 3.80B | 2.63B |
| EBITDA | 1.41B | 2.23B | 2.88B | 2.77B | 2.16B | 1.42B |
| Net Income | 742.68M | 1.34B | 1.65B | 1.70B | 1.33B | 1.30B |
Balance Sheet | ||||||
| Total Assets | 24.24B | 24.56B | 24.51B | 23.76B | 19.82B | 17.25B |
| Cash, Cash Equivalents and Short-Term Investments | 1.20B | 1.74B | 2.58B | 2.86B | 2.29B | 4.74B |
| Total Debt | 8.86B | 9.40B | 9.96B | 9.68B | 7.41B | 5.59B |
| Total Liabilities | 12.24B | 12.46B | 12.99B | 13.10B | 9.98B | 8.01B |
| Stockholders Equity | 11.99B | 12.10B | 11.50B | 10.65B | 9.83B | 9.24B |
Cash Flow | ||||||
| Free Cash Flow | 1.56B | 1.77B | 1.58B | 529.34M | 560.25M | -744.16M |
| Operating Cash Flow | 2.45B | 2.54B | 2.40B | 2.04B | 1.40B | 1.18B |
| Investing Cash Flow | -765.98M | -592.44M | -791.19M | -1.74B | -4.41B | -1.90B |
| Financing Cash Flow | -3.32B | -2.79B | -1.89B | 278.95M | 557.06M | 3.21B |
Hypera SA Technical Analysis
Negative
4.25
Price Trends
4.38
Negative
4.56
Negative
3.94
Positive
Market Momentum
-0.03
Positive
42.41
Neutral
14.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HYPMY, the sentiment is Negative. The current price of 4.25 is below the 20-day moving average (MA) of 4.36, below the 50-day MA of 4.38, and above the 200-day MA of 3.94, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 42.41 is Neutral, neither overbought nor oversold. The STOCH value of 14.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HYPMY.
Hypera SA Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $2.69B | 41.92 | 6.38% | ― | 5.55% | 1145.24% | |
66 Neutral | $1.93B | ― | -2.82% | ― | 38.68% | -160.14% | |
66 Neutral | $3.27B | 1,625.00 | 106.97% | ― | 9.81% | ― | |
65 Neutral | $2.73B | 20.62 | 6.12% | 0.97% | -26.90% | -60.69% | |
58 Neutral | $2.90B | 32.69 | ― | ― | 2.27% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $3.05B | ― | -1.32% | 5.09% | -2.32% | 35.46% |
* Healthcare Sector Average
HYPMY
Hypera SA
4.25
-0.59
-12.19%
PRGO
Perrigo Company
22.51
-0.84
-3.60%
SUPN
Supernus Pharmaceuticals
48.35
16.29
50.81%
ANIP
ANI Pharmaceuticals
89.64
33.80
60.53%
INDV
Indivior
23.17
12.80
123.43%
AMRX
Amneal Pharmaceuticals
10.39
1.93
22.81%
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.