Hikma Pharmaceuticals Plc (HIK) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hikma Pharmaceuticals Plc

Alliance Pharma Plc

HUTCHMED (China) Ltd.

Indivior PLC

GSK Plc

AstraZeneca PLC

Dechra Pharmaceuticals Plc

Benchmark Holdings Plc

Why is Hikma Pharmaceuticals Plc ?

High Management Efficiency with a high ROCE of 18.66%

Company has a low Debt to Equity ratio (avg) at times

Flat results in Jun 25

RAW MATERIAL COST(Y) Grown by 15.37% (YoY)
DEBT-EQUITY RATIO (HY) Highest at 52.09 %
PRE-TAX PROFIT(Q) Fallen at -31.38%

With ROE of 13.78%, it has a very expensive valuation with a 2.15 Price to Book Value

Over the past year, while the stock has generated a return of -21.88%, its profits have risen by 1.4% ; the PEG ratio of the company is 10.9

Below par performance in long term as well as near term

Along with generating -21.88% returns in the last 1 year, the stock has also underperformed FTSE 100 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hikma Pharmaceuticals Plc should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Hikma Pharmaceuticals Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hikma Pharmaceuticals Plc

-21.88%

-1.51

27.44%

FTSE 100

17.22%

1.34

12.87%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.43%

EBIT Growth (5y)

-3.24%

EBIT to Interest (avg)

7.98

Debt to EBITDA (avg)

1.03

Net Debt to Equity (avg)

0.45

Sales to Capital Employed (avg)

0.81

Tax Ratio

20.49%

Dividend Payout Ratio

48.77%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

18.66%

ROE (avg)

16.01%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.15

EV to EBIT

12.85

EV to EBITDA

9.05

EV to Capital Employed

1.77

EV to Sales

1.98

PEG Ratio

10.85

Dividend Yield

1.11%

ROCE (Latest)

13.74%

ROE (Latest)

13.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 1.94%

DIVIDEND PER SHARE(HY)

Highest at GBP 3.17

NET SALES(Q)

Highest at GBP 1,278.64 MM

EPS(Q)

Highest at GBP 0.83

-4What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 15.37% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 52.09 %

PRE-TAX PROFIT(Q)

Fallen at -31.38%

NET PROFIT(Q)

Fallen at -29.95%

Here's what is working for Hikma Pharmaceuticals Plc

Inventory Turnover Ratio

Highest at 1.94% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at GBP 3.17 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (GBP)

Net Sales

Highest at GBP 1,278.64 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (GBP MM)

EPS

Highest at GBP 0.83

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (GBP)

Depreciation

Highest at GBP 82.52 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)

Here's what is not working for Hikma Pharmaceuticals Plc

Pre-Tax Profit

Fallen at -31.38%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Net Profit

Fallen at -29.95%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

Debt-Equity Ratio

Highest at 52.09 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 15.37% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales