Hikma Pharmaceuticals PLC develops, manufactures, and markets a range of generic, branded, and in-licensed pharmaceutical products.
No risks detected for HIK from our risk checks.
Hikma Pharmaceuticals Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||UK£24.59|
|52 Week High||UK£21.58|
|52 Week Low||UK£27.68|
|1 Month Change||3.06%|
|3 Month Change||-6.50%|
|1 Year Change||-5.50%|
|3 Year Change||33.42%|
|5 Year Change||41.81%|
|Change since IPO||771.99%|
Recent News & Updates
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...
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...
|HIK||GB Pharmaceuticals||GB Market|
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.
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
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
|HIK fundamental statistics|
Is HIK overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|HIK income statement (TTM)|
|Cost of Revenue||US$1.17b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||2.02|
|Net Profit Margin||19.26%|
How did HIK perform over the long term?See historical performance and comparison
1.5%Current Dividend Yield
Is Hikma Pharmaceuticals undervalued compared to its fair value and its price relative to the market?
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).
How is Hikma Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
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%).
How has Hikma Pharmaceuticals performed over the past 5 years?
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.
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 ($917.0M).
Debt to Equity History and Analysis
Debt Level: HIK's debt to equity ratio (36.8%) is considered satisfactory.
Reducing Debt: HIK's debt to equity ratio has reduced from 43.7% to 36.8% over the past 5 years.
Debt Coverage: HIK's debt is well covered by operating cash flow (46.7%).
Interest Coverage: HIK's interest payments on its debt are well covered by EBIT (15.4x coverage).
What is Hikma Pharmaceuticals's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HIK's dividend (1.53%) is higher than the bottom 25% of dividend payers in the UK market (1.39%).
High Dividend: HIK's dividend (1.53%) is low compared to the top 25% of dividend payers in the UK market (4.08%).
Stability and Growth of Payments
Stable Dividend: HIK's dividends per share have been stable in the past 10 years.
Growing Dividend: HIK's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (25.7%), HIK's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HIK's dividends in 3 years are forecast to be well covered by earnings (27.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Siggi Olafsson (52 yo)
Mr. Sigurdur Oli Olafsson, Ph D., also known as Siggi, has been Chief Executive Officer and Executive Director of Hikma Pharmaceuticals PLC since February 20, 2018. Mr. Olafsson served as an Executive Offi...
CEO Compensation Analysis
Compensation vs Market: Siggi's total compensation ($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.
Experienced Management: HIK's management team is considered experienced (3.8 years average tenure).
Experienced Board: HIK's board of directors are considered experienced (5.3 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Hikma Pharmaceuticals PLC's employee growth, exchange listings and data sources
- 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
- Hikma Pharmaceuticals PLC
- 1 New Burlington Place
- Greater London
- W1S 2HR
- United Kingdom
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/26 21:19|
|End of Day Share Price||2021/10/26 00:00|
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.