Hypera SA (HYPMY) AI Stock Analysis

• Market Cap: $2.93B
• Dividend Yield: 4.73%
• Average Volume (3M): 110.00
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.71
• Revenue Growth: -18.21%
• EPS Growth: -50.94%
• Country: US
• Employees: 10,481
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.13
• Shares Outstanding: 633,420,840
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 110
• PEG Ratio: -1.11
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 1.86
• P/FCF Ratio: 8.08
• Enterprise Value/Market Cap: 7.51
• Enterprise Value/Revenue: 2.86
• Enterprise Value/Gross Profit: 4.84
• Enterprise Value/Ebitda: 9.73
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $4.50 ▲(4.41% Upside)
• Action: Downgraded Date: 03/18/26
• Date: Action: Downgraded 03/18/26

The score is driven primarily by solid underlying profitability but tempered by weaker cash conversion and a step-down in returns versus prior years. Valuation is a clear positive (low P/E and high dividend yield), while technicals remain a headwind with the stock trading below key moving averages. The latest earnings call was supportive due to improved cash generation and solid growth, despite pipeline and institutional-market challenges.

Positive Factors

High margins and profitability

Sustained gross and net margins near 58% and 16% reflect durable pricing power and cost control in consumer health and generics. High margins support steady operating earnings, fund reinvestment and dividends, and cushion results against modest volume or cost swings over months.

Stronger cash generation

Record operational cash flow and completed working-capital optimization materially improve liquidity and lower leverage. This strengthens the company’s ability to fund capex, pay shareholders and reduce net debt, making operations more resilient across the medium term.

Brand, scale and vertical integration

Established OTC brands, wide distribution and vertical manufacturing integration create sustainable competitive advantages: lower unit costs, faster product launches and strong retail placement, which support market share retention and margin durability over the coming quarters.

Negative Factors

Weak cash conversion

Subpar cash conversion versus accounting profits signals persistent working-capital drag or higher cash taxes/interest/capex. That constrains free cash available for growth, M&A or sustainable shareholder returns and increases sensitivity to cyclical working-capital swings.

Cooling returns on equity

Declining ROE indicates the business is generating lower returns from equity capital than prior years, reducing capital efficiency. Persistently lower ROE can limit reinvestment upside and pressure long-term shareholder returns if not reversed by structural growth or margin expansion.

Regulatory delays hit pipeline

Slower ANVISA approvals delay new product rollouts and revenue diversification, extending payback timelines on R&D and marketing investments. Prolonged regulatory friction can erode competitive momentum in key categories and magnify dependence on legacy brands.

Hypera SA Business Overview & Revenue Model

Company Description

Hypera 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 Money

Hypera makes money mainly by selling pharmaceutical and consumer health products in Brazil. Its core revenue stream is net sales of finished products (i.e., branded OTC medicines and prescription products, including branded generics) sold through wholesale distributors and directly to retail pharmacy chains and independent drugstores; revenue is recognized when products are delivered/ownership transfers under customer terms. The company also generates revenue by leveraging established brands and a broad sales and distribution footprint to drive volume and maintain pricing/mix, supported by marketing spend and trade promotions that are typically recorded as deductions from gross sales (e.g., discounts, rebates, returns/chargebacks where applicable). A key contributor to earnings is vertical integration and scale: Hypera operates manufacturing and supply operations that convert active ingredients and packaging materials purchased from third parties into finished goods, with profitability driven by gross margin on product sales after manufacturing costs, logistics, and commercial expenses. Any additional revenue streams such as licensing, royalties, or material joint-venture income are null.

Hypera SA Financial Statement Overview

Summary

Profitable with healthy TTM gross (~58%) and net (~16%) margins and revenue back to growth (~+10%), but profitability has stepped down versus 2022–2023 and cash conversion is a key weakness (operating cash flow <50% of EBIT; free cash flow ~67% of net income). Leverage is manageable (~0.76x debt/equity) but returns have cooled (TTM ROE ~9.9%).

Income Statement

HYPMY shows solid profitability with TTM (Trailing-Twelve-Months) gross margin around 58% and net margin around 16%, indicating healthy pricing power and cost control for the sector. Revenue is back to growth in TTM (about +10%), following a slight decline in 2024, but profitability has moderated versus 2021–2023 (TTM net income is below 2024 and well below 2022–2023 levels), suggesting some margin pressure and less efficient earnings conversion than prior years.

Balance Sheet

Leverage looks manageable but meaningful: TTM debt is about 0.76x equity, improved from the higher levels seen in 2022–2023, which supports balance sheet stability. At the same time, returns to shareholders have cooled (TTM return on equity ~9.9% vs. mid-teens in 2022–2023), implying weaker profitability on a growing equity base and leaving less cushion if operating conditions soften.

Cash Flow

Cash generation is positive with TTM free cash flow of ~1.67B and modest growth, but cash conversion is the key weak spot: TTM operating cash flow covers less than half of EBIT, and free cash flow is only ~67% of net income, pointing to working-capital drag and/or higher cash taxes/interest/capex versus earnings. The trajectory is better than 2020–2022 (including a negative free cash flow year in 2020 and a weak 2022), but TTM still shows less efficient cash realization than ideal.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.70B	7.44B	7.91B	7.55B	5.94B
Gross Profit	4.55B	4.38B	5.00B	4.76B	3.80B
EBITDA	2.26B	2.23B	2.88B	2.77B	2.16B
Net Income	1.20B	1.34B	1.65B	1.70B	1.33B
Balance Sheet
Total Assets	25.16B	24.56B	24.51B	23.76B	19.82B
Cash, Cash Equivalents and Short-Term Investments	1.65B	1.74B	2.58B	2.86B	2.29B
Total Debt	9.34B	9.40B	9.96B	9.68B	7.41B
Total Liabilities	12.63B	12.46B	12.99B	13.10B	9.98B
Stockholders Equity	12.52B	12.10B	11.50B	10.65B	9.83B
Cash Flow
Free Cash Flow	1.78B	1.77B	1.58B	529.34M	560.25M
Operating Cash Flow	2.57B	2.54B	2.40B	2.04B	1.40B
Investing Cash Flow	-689.50M	-592.44M	-791.19M	-1.74B	-4.41B
Financing Cash Flow	-1.98B	-2.79B	-1.89B	278.95M	557.06M

Hypera SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 4.31 is above the 20-day moving average (MA) of 4.27, below the 50-day MA of 4.41, and below the 200-day MA of 4.42, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 44.61 is Neutral, neither overbought nor oversold. The STOCH value of 80.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HYPMY.

Hypera SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HYPMY	69 Neutral	$2.93B	12.00	9.86%	4.73%	-18.21%	-50.94%
ANIP	67 Neutral	$1.67B	14.40	15.55%	―	48.87%	―
SUPN	60 Neutral	$2.75B	-72.78	-0.01%	―	4.54%	-130.59%
INDV	58 Neutral	$3.66B	21.36	-98.94%	―	-0.25%	―
AMRX	54 Neutral	$3.72B	28.14	-67.91%	―	9.50%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PRGO	50 Neutral	$1.27B	-1.35	-35.16%	8.48%	-2.55%	66.00%