Hikma Pharmaceuticals PLC
Hikma Pharmaceuticals PLC Fundamental Analysis
Hikma Pharmaceuticals PLC (HKMPF) shows moderate financial fundamentals with a PE ratio of 11.43, profit margin of 11.54%, and ROE of 15.31%. The company generates $3.2B in annual revenue with moderate year-over-year growth of 8.77%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze HKMPF's fundamental strength across five key dimensions:
Efficiency Score
WeakHKMPF struggles to generate sufficient returns from assets.
Valuation Score
ModerateHKMPF shows balanced valuation metrics.
Growth Score
ExcellentHKMPF delivers strong and consistent growth momentum.
Financial Health Score
ExcellentHKMPF maintains a strong and stable balance sheet.
Profitability Score
ModerateHKMPF maintains healthy but balanced margins.
Key Financial Metrics
Is HKMPF Expensive or Cheap?
P/E Ratio
HKMPF trades at 11.43 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HKMPF's PEG of 3.09 indicates potential overvaluation.
Price to Book
The market values Hikma Pharmaceuticals PLC at 1.67 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.77 times EBITDA. This is generally considered low.
How Well Does HKMPF Make Money?
Net Profit Margin
For every $100 in sales, Hikma Pharmaceuticals PLC keeps $11.54 as profit after all expenses.
Operating Margin
Core operations generate 16.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.31 in profit for every $100 of shareholder equity.
ROA
Hikma Pharmaceuticals PLC generates $6.68 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hikma Pharmaceuticals PLC produces operating cash flow of $522.26M, showing steady but balanced cash generation.
Free Cash Flow
Hikma Pharmaceuticals PLC generates strong free cash flow of $359.74M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.63 in free cash annually.
FCF Yield
HKMPF converts 8.64% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.67
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.31
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.61
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.24
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How HKMPF Stacks Against Its Sector Peers
| Metric | HKMPF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.43 | 29.78 | Better (Cheaper) |
| ROE | 15.31% | 792.00% | Weak |
| Net Margin | 11.54% | -23280.00% (disorted) | Strong |
| Debt/Equity | 0.61 | 0.25 | Weak (High Leverage) |
| Current Ratio | 1.24 | 4.60 | Neutral |
| ROA | 6.68% | -18077.00% (disorted) | Weak |
HKMPF outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hikma Pharmaceuticals PLC's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
53.77%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-19.83%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
29.68%
Industry Style: Defensive, Growth, Innovation
High Growth