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HIK

Hikma PharmaceuticalsLSE:HIK Stock Report

Market Cap

UK£5.7b

7D

1.9%

1Y

-5.5%

Updated

26 Oct, 2021

Data

Company Financials +
HIK fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance3/6
Financial Health6/6
Dividends5/6

HIK Overview

Hikma Pharmaceuticals PLC develops, manufactures, and markets a range of generic, branded, and in-licensed pharmaceutical products.

Hikma Pharmaceuticals Competitors

Indivior

LSE:INDV

UK£1.7b

Vectura Group

LSE:VEC

UK£1.0b

Pfizer

NYSE:PFE

US$241.9b

Sanofi

ENXTPA:SAN

€107.4b

Price History & Performance

Summary of all time highs, changes and price drops for Hikma Pharmaceuticals
Historical stock prices
Current Share PriceUK£24.59
52 Week HighUK£21.58
52 Week LowUK£27.68
Beta-0.089
1 Month Change3.06%
3 Month Change-6.50%
1 Year Change-5.50%
3 Year Change33.42%
5 Year Change41.81%
Change since IPO771.99%

Recent News & Updates

Sep 02
Is There An Opportunity With Hikma Pharmaceuticals PLC's (LON:HIK) 32% Undervaluation?

Is There An Opportunity With Hikma Pharmaceuticals PLC's (LON:HIK) 32% Undervaluation?

Today we will run through one way of estimating the intrinsic value of Hikma Pharmaceuticals PLC ( LON:HIK ) by taking...

Aug 09
Is Hikma Pharmaceuticals (LON:HIK) A Risky Investment?

Is Hikma Pharmaceuticals (LON:HIK) A Risky Investment?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

HIKGB PharmaceuticalsGB Market
7D1.9%2.5%0.2%
1Y-5.5%9.8%24.7%

Return vs Industry: HIK underperformed the UK Pharmaceuticals industry which returned 9.8% over the past year.

Return vs Market: HIK underperformed the UK Market which returned 24.7% over the past year.

Price Volatility

Is HIK's price volatile compared to industry and market?
HIK volatility
HIK Beta-0.089
Industry Beta0.43
Market Beta1

Stable Share Price: HIK is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: HIK's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19788,600Siggi Olafssonhttps://www.hikma.com

Hikma Pharmaceuticals PLC develops, manufactures, and markets 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 through three segments: Injectables, Generics, and Branded.

Hikma Pharmaceuticals Fundamentals Summary

How do Hikma Pharmaceuticals's earnings and revenue compare to its market cap?
HIK fundamental statistics
Market CapUS$7.84b
Earnings (TTM)US$467.00m
Revenue (TTM)US$2.43b

16.8x

P/E Ratio

3.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HIK income statement (TTM)
RevenueUS$2.43b
Cost of RevenueUS$1.17b
Gross ProfitUS$1.25b
ExpensesUS$785.00m
EarningsUS$467.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.02
Gross Margin51.63%
Net Profit Margin19.26%
Debt/Equity Ratio36.8%

How did HIK perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

26%

Payout Ratio

Valuation

Is Hikma Pharmaceuticals undervalued compared to its fair value and its price relative to the market?

39.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HIK (£24.59) is trading below our estimate of fair value (£40.93)

Significantly Below Fair Value: HIK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HIK is good value based on its PE Ratio (16.8x) compared to the UK Pharmaceuticals industry average (26.6x).

PE vs Market: HIK is good value based on its PE Ratio (16.8x) compared to the UK market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: HIK is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: HIK is good value based on its PB Ratio (3.4x) compared to the GB Pharmaceuticals industry average (5x).


Future Growth

How is Hikma Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HIK's forecast earnings growth (6.3% per year) is above the savings rate (0.9%).

Earnings vs Market: HIK's earnings (6.3% per year) are forecast to grow slower than the UK market (12.7% per year).

High Growth Earnings: HIK's earnings are forecast to grow, but not significantly.

Revenue vs Market: HIK's revenue (6.9% per year) is forecast to grow faster than the UK market (5% per year).

High Growth Revenue: HIK's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HIK's Return on Equity is forecast to be low in 3 years time (19%).


Past Performance

How has Hikma Pharmaceuticals performed over the past 5 years?

35.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HIK has high quality earnings.

Growing Profit Margin: HIK's current net profit margins (19.3%) are lower than last year (22.4%).


Past Earnings Growth Analysis

Earnings Trend: HIK's earnings have grown significantly by 35.6% per year over the past 5 years.

Accelerating Growth: HIK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HIK had negative earnings growth (-9%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (26.8%).


Return on Equity

High ROE: HIK's Return on Equity (20.2%) is considered high.


Financial Health

How is Hikma Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: HIK's short term assets ($2.0B) exceed its short term liabilities ($960.0M).

Long Term Liabilities: HIK's short term assets ($2.0B) exceed its long term liabilities ($917.0M).


Debt to Equity History and Analysis

Debt Level: HIK's debt to equity ratio (36.8%) is considered satisfactory.

Reducing Debt: HIK's debt to equity ratio has reduced from 43.7% to 36.8% over the past 5 years.

Debt Coverage: HIK's debt is well covered by operating cash flow (46.7%).

Interest Coverage: HIK's interest payments on its debt are well covered by EBIT (15.4x coverage).


Balance Sheet


Dividend

What is Hikma Pharmaceuticals's current dividend yield, its reliability and sustainability?

1.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HIK's dividend (1.53%) is higher than the bottom 25% of dividend payers in the UK market (1.39%).

High Dividend: HIK's dividend (1.53%) is low compared to the top 25% of dividend payers in the UK market (4.08%).


Stability and Growth of Payments

Stable Dividend: HIK's dividends per share have been stable in the past 10 years.

Growing Dividend: HIK's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.7%), HIK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HIK's dividends in 3 years are forecast to be well covered by earnings (27.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Siggi Olafsson (52 yo)

3.67yrs

Tenure

US$3,718,550

Compensation

Mr. Sigurdur Oli Olafsson, Ph D., also known as Siggi, has been Chief Executive Officer and Executive Director of Hikma Pharmaceuticals PLC since February 20, 2018. Mr. Olafsson served as an Executive Offi...


CEO Compensation Analysis

Compensation vs Market: Siggi's total compensation ($USD3.72M) is above average for companies of similar size in the UK market ($USD2.25M).

Compensation vs Earnings: Siggi's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: HIK's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: HIK's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hikma Pharmaceuticals PLC's employee growth, exchange listings and data sources


Key Information

  • Name: Hikma Pharmaceuticals PLC
  • Ticker: HIK
  • Exchange: LSE
  • Founded: 1978
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: UK£5.691b
  • Shares outstanding: 231.44m
  • Website: https://www.hikma.com

Number of Employees


Location

  • Hikma Pharmaceuticals PLC
  • 1 New Burlington Place
  • London
  • Greater London
  • W1S 2HR
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 21:19
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.