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Hikma Pharmaceuticals PLC (GB:HIK)
LSE:HIK

Hikma Pharmaceuticals (HIK) AI Stock Analysis

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Hikma Pharmaceuticals

(LSE:HIK)

77Outperform
Hikma Pharmaceuticals' strong financial performance and positive corporate events are major strengths, driving a robust stock score. The reasonable valuation and attractive dividend yield further enhance its appeal. However, technical indicators suggest caution due to a bearish trend, which tempers the overall outlook.
Positive Factors
Growth Prospects
Injectables growth accelerated in the second half, with good demand for own products in Europe and MENA, supported by new launches.
Market Opportunity
A market overreaction has created an opportunity for investors, as recent macro tariff news has inappropriately affected Hikma, exposing both short- and long-term opportunity.
Stock Valuation
The stock offers an attractive entry point with strong GARP qualities and compelling prospects for multiple expansion.
Negative Factors
Earnings Adjustment
We update our forecasts, with a 2% reduction to FY25 core EBIT and 5% reduction to adj. EPS also reflecting higher interest charges.
Financial Forecast
The FY25 guide is for 'mid-30s' core EBIT, perhaps implying a potentially wider outcome than typically more specific 100-200 bps guidance range in the past.

Hikma Pharmaceuticals (HIK) vs. S&P 500 (SPY)

Hikma Pharmaceuticals Business Overview & Revenue Model

Company DescriptionHikma Pharmaceuticals (HIK) is a multinational pharmaceutical company headquartered in London, United Kingdom. The company operates primarily in three sectors: branded, injectables, and generics. Hikma focuses on developing, manufacturing, and marketing a broad range of both branded and non-branded generic medicines. Its core products include oral and injectable pharmaceuticals, with a strong emphasis on quality and accessibility. Hikma serves a diverse customer base, including hospitals, pharmacies, and healthcare providers across more than 50 countries.
How the Company Makes MoneyHikma Pharmaceuticals generates revenue through the sale of its pharmaceutical products across three main segments: branded, injectables, and generics. The branded segment focuses on proprietary products sold primarily in the Middle East and North Africa. The injectables segment involves the production and sale of injectable medicines, which are distributed to hospitals and healthcare facilities globally. The generics segment offers non-branded generic drugs, mainly targeting the US market. Hikma's revenue model is supported by strategic partnerships, research and development investments, and a diverse portfolio of pharmaceutical products that cater to different therapeutic areas. Additionally, Hikma capitalizes on its strong distribution network and manufacturing capabilities to ensure efficient product delivery and market penetration.

Hikma Pharmaceuticals Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
3.02B2.88B2.52B2.55B2.34B2.21B
Gross Profit
1.45B1.41B1.26B1.30B1.21B1.10B
EBIT
661.00M367.00M591.00M634.00M540.00M486.00M
EBITDA
844.00M791.00M485.00M744.00M654.00M584.00M
Net Income Common Stockholders
285.00M190.00M188.00M421.00M431.00M486.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
205.00M229.00M292.00M450.00M347.00M465.00M
Total Assets
4.68B4.68B4.47B4.37B4.13B3.93B
Total Debt
1.19B1.19B1.28B846.00M932.00M685.00M
Net Debt
986.00M986.00M1.01B420.00M609.00M243.00M
Total Liabilities
2.47B2.47B2.32B1.91B1.99B1.80B
Stockholders Equity
2.20B2.20B2.13B2.45B2.13B2.12B
Cash FlowFree Cash Flow
430.00M439.00M392.00M493.00M292.00M353.00M
Operating Cash Flow
584.00M608.00M530.00M638.00M464.00M472.00M
Investing Cash Flow
-320.00M-333.00M-607.00M-238.00M-283.00M-151.00M
Financing Cash Flow
-291.00M-337.00M-58.00M-287.00M-298.00M-155.00M

Hikma Pharmaceuticals Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1869.00
Price Trends
50DMA
2079.67
Negative
100DMA
2032.80
Negative
200DMA
1951.40
Negative
Market Momentum
MACD
-67.13
Positive
RSI
40.34
Neutral
STOCH
39.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HIK, the sentiment is Negative. The current price of 1869 is below the 20-day moving average (MA) of 1934.02, below the 50-day MA of 2079.67, and below the 200-day MA of 1951.40, indicating a bearish trend. The MACD of -67.13 indicates Positive momentum. The RSI at 40.34 is Neutral, neither overbought nor oversold. The STOCH value of 39.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:HIK.

Hikma Pharmaceuticals Peers Comparison

Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBAZN
77
Outperform
£155.19B28.1817.43%2.45%14.82%14.98%
GBHIK
77
Outperform
£4.06B14.4215.79%3.38%5.83%83.35%
GBGSK
70
Outperform
£53.62B20.9419.06%4.71%3.46%-48.06%
48
Neutral
$6.46B1.17-48.25%2.67%19.50%0.61%
47
Neutral
£1.14B
8.69%-1568.57%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:HIK
Hikma Pharmaceuticals
1,869.00
115.31
6.58%
GB:AZN
AstraZeneca
10,320.00
-479.32
-4.44%
GB:GSK
GlaxoSmithKline
1,322.50
-256.54
-16.25%
INDV
Indivior
9.44
-10.30
-52.18%

Hikma Pharmaceuticals Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Hikma Pharmaceuticals Announces Discretionary Share Awards to Key Executives
Neutral
Apr 10, 2025

Hikma Pharmaceuticals PLC announced the granting of discretionary share awards under its 2023 Long Term Incentive Plan (LTIP) and Deferred Bonus Plan (DBP) to key managerial personnel. These awards, which are conditional on continued employment and performance criteria, are designed to align the interests of the company’s leadership with its long-term strategic goals, potentially impacting the company’s operational focus and stakeholder value.

Spark’s Take on GB:HIK Stock

According to Spark, TipRanks’ AI Analyst, GB:HIK is a Outperform.

Hikma Pharmaceuticals’ strong financial performance and positive corporate events are major strengths, driving a robust stock score. The reasonable valuation and attractive dividend yield further enhance its appeal. However, technical indicators suggest caution due to a bearish trend, which tempers the overall outlook.

To see Spark’s full report on GB:HIK stock, click here.

Regulatory Filings and Compliance
Hikma Pharmaceuticals Announces Share Disposal by Non-Executive Director
Neutral
Apr 8, 2025

Hikma Pharmaceuticals announced a transaction involving the disposal of shares by Victoria Hull, a Non-Executive Director of the company. The transaction, which involved the sale of 2,777 ordinary shares at a price of £18.00 each, was conducted on the London Stock Exchange, totaling £49,986. This notification is part of compliance with the EU Market Abuse Regulation, reflecting transparency in managerial transactions.

Spark’s Take on GB:HIK Stock

According to Spark, TipRanks’ AI Analyst, GB:HIK is a Outperform.

Hikma Pharmaceuticals’ strong financial performance and positive corporate events are major strengths, driving a robust stock score. The reasonable valuation and attractive dividend yield further enhance its appeal. However, technical indicators suggest caution due to a bearish trend, which tempers the overall outlook.

To see Spark’s full report on GB:HIK stock, click here.

Shareholder MeetingsFinancial DisclosuresRegulatory Filings and Compliance
Hikma Pharmaceuticals Releases 2024 Annual Report and AGM Notice
Neutral
Mar 19, 2025

Hikma Pharmaceuticals has released its 2024 Annual Report and Accounts alongside the Notice of the 2025 Annual General Meeting. These documents are now accessible to shareholders via the company’s website and the UK National Storage Mechanism, reflecting Hikma’s commitment to transparency and regulatory compliance. This announcement underscores Hikma’s ongoing efforts to maintain strong communication with its stakeholders and adhere to financial reporting standards, potentially impacting investor confidence and market perception.

Executive/Board Changes
Hikma Pharmaceuticals Announces Vesting of Executive Share Awards
Positive
Mar 4, 2025

Hikma Pharmaceuticals announced the vesting of conditional share awards for several key executives under its Executive Incentive Plan. This move reflects the company’s ongoing commitment to rewarding its leadership team, potentially enhancing managerial stability and aligning executive interests with shareholder value. The shares were acquired without any cost and retained by the executives, indicating confidence in the company’s future performance.

M&A TransactionsDividendsBusiness Operations and StrategyFinancial Disclosures
Hikma Pharmaceuticals Reports Strong 2024 Performance and Positive 2025 Outlook
Positive
Feb 26, 2025

Hikma Pharmaceuticals reported a strong financial performance for 2024, with a 10% growth in core revenue and a 67% increase in reported operating profit. The company’s strategic acquisitions, such as Xellia Pharmaceuticals’ US business, and new partnerships have bolstered its market position, particularly in the injectables and generics segments. Hikma’s continued investment in R&D and business development is expected to drive future growth, with a positive outlook for 2025, including projected revenue growth of 4% to 6%. The company’s robust balance sheet and increased dividend reflect confidence in its future prospects.

Financial Disclosures
Hikma Pharmaceuticals to Announce 2024 Financial Results
Neutral
Feb 10, 2025

Hikma Pharmaceuticals has announced that it will release its financial results for the year ended 31 December 2024 on 26 February 2025. This announcement is significant as it provides insights into the company’s financial health and operational performance, which could impact its market positioning and stakeholder confidence.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.