Hikma Pharmaceuticals

HIK.L

Drug Manufacturers - Specialty & Generic · Healthcare

Price

1,636.00 GBp

+12.00 (+0.74%)

Market Cap

£3.42B

Exchange

London Stock Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Good

Growth

Mixed

Cash Flow

Good

Stability

Good

Valuation

Strong

Dividends

Strong

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Share count falling — buybacks

−4.4% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 233.0M (2021) → 222.7M (2025)

Winston Score History

The full picture

Hikma Pharmaceuticals makes medicines and sells them to hospitals, pharmacies, and healthcare systems. The company focuses on generic drugs — copies of brand-name medicines that cost less — as well as injectable drugs used in hospitals. It operates across three main business areas: injectables, generics, and branded medicines sold in the Middle East and North Africa.

Hikma earns money by manufacturing and selling these drugs directly to healthcare providers and distributors. It operates mainly in the United States, Europe, and the Middle East, with the US being its largest market. The company has built a strong position in hospital injectables, which require complex manufacturing and strict regulatory approval, making it harder for new competitors to enter. The main risk Hikma faces is pricing pressure on generic drugs in the US market, where competition is intense and prices for generic medicines have been falling steadily for several years.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+3.4% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-99.0% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$154M/ year

↑ Rising (+9% vs prior year)

4.6% of revenue

Below sector average (18%)

R&D investment increasing — building for the future

Insider Activity

29.5%ownership

↑ Rising

Insiders increasing their stake — aligned with shareholders

Cash Position

Cash flow positive

$302M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Hikma Pharmaceuticals is growing revenue at 3% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

42.1%

Healthy — 42.1% gross margin

Profit after running costs

Operating Margin

20.8%

Excellent — 20.8% operating margin

Return on the money invested

ROCE

15.0%

Good — 15.0% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+6.1%

Slow sales growth (+6.1% YoY)

Profit growth

EPS YoY

-98.4%

Earnings shrinking (-98.4% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash

Cash Conversion

103%

Turns 103% of profit into real cash

Spare cash per sale

FCF Margin

4.3%

Thin free cash flow (4.3%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.75

Moderate — manageable debt (0.75)

Covers its interest

Interest Cover

5.62x

Adequate interest coverage (5.6x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

9.1x

Attractive valuation — P/E 9.1

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year

P/E vs Forward

+0.4

GROWING

Earnings roughly flat

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Dividends

Dividend

Dividend Yield

3.32%

Moderate income — 3.32% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record

Dividend Growth

+13.3%

Dividend growing fast (13.3% YoY)

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