Hikma Pharmaceuticals PLC's (LON:HIK) Intrinsic Value Is Potentially 28% Above Its Share Price
Jun 02
U.K. (FTSE) Pharma Industry Analysis
UpdatedJun 08, 2023
DataAggregated Company Financials
Companies26
- 7D1.4%
- 3M5.6%
- 1Y-4.0%
- YTD0.4%
Over the last 7 days, the Pharma industry has risen 2.7%, driven by gains from AstraZeneca of 2.9%. Despite this gain, the industry's performance has been flat over the past year. Looking forward, earnings are forecast to grow by 19% annually.
Industry Valuation and Performance
Has the U.K. Pharma Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 08 Jun 2023 | UK£251.2b | UK£68.6b | UK£8.0b | 55.5x | 31.5x | 3.7x |
| Sat, 06 May 2023 | UK£258.0b | UK£68.0b | UK£7.9b | 57.3x | 32.6x | 3.8x |
| Mon, 03 Apr 2023 | UK£243.3b | UK£69.5b | UK£6.9b | 51.9x | 35.3x | 3.5x |
| Wed, 01 Mar 2023 | UK£238.7b | UK£70.3b | UK£7.0b | 53x | 33.9x | 3.4x |
| Fri, 27 Jan 2023 | UK£235.3b | UK£79.1b | UK£6.3b | 38.3x | 37.4x | 3x |
| Sun, 25 Dec 2022 | UK£245.2b | UK£80.2b | UK£6.3b | 37.7x | 38.7x | 3.1x |
| Tue, 22 Nov 2022 | UK£239.4b | UK£81.1b | UK£6.4b | 26.6x | 37.5x | 3x |
| Thu, 20 Oct 2022 | UK£218.1b | UK£80.9b | UK£3.7b | 20.4x | 59.6x | 2.7x |
| Sat, 17 Sep 2022 | UK£221.6b | UK£80.2b | UK£3.7b | 15.1x | 60.2x | 2.8x |
| Mon, 15 Aug 2022 | UK£237.6b | UK£77.8b | UK£3.8b | 14.9x | 63.2x | 3.1x |
| Wed, 13 Jul 2022 | UK£274.5b | UK£75.5b | UK£4.5b | 16.1x | 60.4x | 3.6x |
| Fri, 10 Jun 2022 | UK£254.9b | UK£73.7b | UK£4.6b | 16.4x | 55.7x | 3.5x |
| Sun, 08 May 2022 | UK£262.3b | UK£74.1b | UK£4.6b | 17.2x | 57.4x | 3.5x |
| Tue, 05 Apr 2022 | UK£256.6b | UK£66.5b | UK£4.8b | 19.8x | 53.4x | 3.9x |
| Thu, 03 Mar 2022 | UK£239.6b | UK£66.1b | UK£4.8b | 31.2x | 50.4x | 3.6x |
| Sat, 29 Jan 2022 | UK£235.8b | UK£61.5b | UK£5.6b | 31.9x | 41.8x | 3.8x |
| Mon, 27 Dec 2021 | UK£233.6b | UK£61.6b | UK£5.6b | 32.1x | 41.4x | 3.8x |
| Wed, 24 Nov 2021 | UK£227.2b | UK£61.6b | UK£5.7b | 31x | 40.2x | 3.7x |
| Fri, 22 Oct 2021 | UK£227.0b | UK£58.1b | UK£7.5b | 27.2x | 30.4x | 3.9x |
| Sun, 19 Sep 2021 | UK£215.7b | UK£58.2b | UK£7.5b | 29.4x | 28.7x | 3.7x |
| Tue, 17 Aug 2021 | UK£230.5b | UK£58.1b | UK£7.5b | 26.9x | 30.7x | 4x |
| Tue, 01 Jun 2021 | UK£190.4b | UK£56.2b | UK£8.5b | 26.8x | 22.4x | 3.4x |
| Fri, 05 Mar 2021 | UK£166.1b | UK£57.2b | UK£8.3b | 33.9x | 20.1x | 2.9x |
| Mon, 07 Dec 2020 | UK£186.6b | UK£57.9b | UK£8.4b | 41.7x | 22.1x | 3.2x |
| Thu, 10 Sep 2020 | UK£198.1b | UK£59.5b | UK£8.5b | 44.1x | 23.2x | 3.3x |
Price to Earnings Ratio
24.1x
Current Industry PE
- Investors are pessimistic on the British Pharmaceuticals industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 31.7x which is lower than its 3-year average PE of 37.8x.
- The industry is trading close to its 3-year average PS ratio of 3.5x.
Past Earnings Growth
- The earnings for companies in the Pharmaceuticals industry have declined 2.3% per year over the last three years.
- Meanwhile revenues for these companies have grown 4.9% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Comparison
How does U.K. Pharma compare with similar industries?
| GB Market | 2.27% | |
| Healthcare | 1.22% | |
| Pharma | 1.39% | |
| Pharma | 1.39% | |
Industry PEThere are no additional sub-industries under this industry.
Forecasted GrowthThere are no additional sub-industries under this industry.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| AZN AstraZeneca | UK£117.54 | 0.8% +UK£1.5b | 14.0% | PE48.2x | |
| GSK GSK | UK£13.76 | 2.2% +UK£1.2b | -37.1% | PE12.5x | |
| INDV Indivior | UK£17.16 | 17.9% +UK£359.9m | 8.5% | PS3.1x | |
| DPH Dechra Pharmaceuticals | UK£36.26 | 8.6% +UK£325.7m | 3.2% | PE103x | |
| HCM HUTCHMED (China) | UK£2.00 | 3.5% +UK£57.6m | 8.7% | PS4.9x |