Hikma Pharmaceuticals PLC (HIK.L) stock analysis

In our weekly check, Hikma Pharmaceuticals PLC is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 5, red flags: 3.

About Hikma Pharmaceuticals PLC

Hikma Pharmaceuticals PLC is a Healthcare company (Drug Manufacturers - Specialty & Generic) based in the United Kingdom, listed on LSE as HIK.L.

What our checks show for HIK.L

Red flags

• The net margin fell by 4.2 points over 5 years, to 12.3%: the company keeps less of each sale as profit.
• The gross margin fell by 7.9 points, to 43%: costs are rising faster than prices.
• The stock has fallen as much as 68% from a peak. Would you have held through that?

Warning signs

• Analysts expect only about 3.9% a year of growth in revenue.
• Free cash flow is only 4.9% of revenue.
• Free cash flow covers the dividend only 0.9 times.
• The price swings a lot: 37.3% annual volatility. Expect large ups and downs.
• Recovering from its deepest fall took about 2.6 years.

Strengths

• Analysts expect earnings per share to grow about 12.1% a year over the next years.
• Analysts expect the net margin to improve by 3.3 points from today's 12.3%.
• Earnings per share grew 30.3% a year over the last 3 years.
• Net profit grew 29.7% a year over the last 3 years.
• The price is 13 times earnings (P/E), reasonable for its growth.
• Beta 0.65: the stock usually moves less than the market.

Similar companies

SFZN.SW · BHC · INDV · HCM · PRGO · LNTH

Questions

What grade does Hikma Pharmaceuticals PLC (HIK.L) have?

In our weekly check, Hikma Pharmaceuticals PLC is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 5, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of HIK.L stock?

This week's biggest flags for Hikma Pharmaceuticals PLC: Margins falling, Gross margin falling, Deep past fall. In total 8 of 25 checks show a warning or a red flag.

What does Hikma Pharmaceuticals PLC do?

Hikma Pharmaceuticals PLC is a Healthcare company (Drug Manufacturers - Specialty & Generic) based in the United Kingdom, listed on LSE as HIK.L.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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