# Hikma Pharmaceuticals PLC (HIK.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Healthcare / Pharmaceuticals. Price 1631p, market value 3.4 billionp.

## Valuation
- **P/E (trailing): 12.5×** (5-yr avg 1450.3×, 3-yr avg 1394.0×). Hikma Pharmaceuticals PLC trades at 12.5× trailing earnings, well below its own five-year average of 1450.3×: cheap by its own standards. The Healthcare median in the September 2026 study was 28.5×. Forward P/E is 8.8×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.62**. A PEG of 0.62 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.7×**. Each dollar of revenue is priced at 0.7×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.9×**. The shares trade at 1.9× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 4.0×**. Enterprise value is 4.0× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 13.0%** (5-yr avg 0.1%). Free cash flow equals 13.0% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 8.0%**. The inverse of the P/E: 8.0% of the price is earned each year.

## Profitability
- **Gross margin: 43.2%**. Hikma Pharmaceuticals PLC keeps 43.2% of revenue after the direct cost of what it sells.
- **Operating margin: 18.1%**. 18.1% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 12.3%**. 12.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 15.8%**. 15.8% on shareholders' equity is solid.
- **Return on invested capital: 24.2%**. Return on all capital, debt included, is 24.2%: comfortably above what that capital costs.
- **Return on assets: 13.4%**. Each dollar of assets produces 13.4% of profit.

## Growth
- **Revenue growth (1 yr): 7.1%** (3-yr 10.0%/yr, 5-yr 7.4%/yr). Revenue grew 7.1% over the last year, against 7.4% a year compounded over five years.
- **EPS growth (1 yr): 14.3%** (3-yr 29.9%/yr, 5-yr 0.3%/yr). Earnings per share rose 14.3%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): -25.0%/yr**. Free cash flow has compounded at -25.0% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.62**. Debt is 0.62 times equity, moderate leverage.
- **Net debt / EBITDA: 0.9×**. It would take 0.9 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 11.1×**. Operating profit covers interest 11.1× over, a safe margin.
- **Current ratio: 1.82** (quick 1.06). Current assets cover the next year's liabilities 1.82 times.
- **Altman Z-score: 2.47**. A Z-score of 2.47 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 3.98%** (1p per share, trailing). Hikma Pharmaceuticals PLC yields 3.98%, an income-level yield.
- **Payout ratio: 46%** (60% of free cash flow). 46% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 20**. 20 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 12.2%/yr** (1-yr 4.7%). The dividend has compounded at 12.2% a year over five years, doubling roughly every 6 years at that pace.
- **Shareholder yield: 4.0%**. Dividends plus net buybacks return 4.0% of the market value a year.

## Analyst view
- **Analyst consensus: strong_buy** (12 analysts). 12 analysts cover Hikma Pharmaceuticals PLC; the consensus is strong_buy, with an average price target of 1971p (+21% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -8.5%** (YTD 1.5%, 3-mo 7.5%). The shares are down 8.5% over twelve months including dividends.
- **From 52-week high: -12.5%** (37.4% above the low). Trading 13% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 39**. An RSI of 39 is neutral.
- **Beta (1 yr): 0.88** (volatility 35%). Beta of 0.88 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=HIK.L · Page: https://foliofundamentals.com/stocks/hik.l

Not investment advice.