EN DE

Hikma Pharmaceuticals PLC (HIK) Fair Value & Analysis

Healthcare · GB · Market cap 3.3B GBX

HP Hikma Pharmaceuticals PLC HIK · LSE
Price£16.24
Fair Value£25.59
Upside+57.6%
Quality56/100
Watch Hikma Pharmaceuticals PLC for free, get notified when fair value or trend changes. Watch for free

Strengths

Trades 58% below our fair value of £25.59
Solidly profitable · 12.0% net margin
Moderate debt · generates free cash flow
Ranks above peers (11/15)

Risks

!Mixed Growth
!Moderate moat 60/100
Mixed Growth
Solidly profitable · 12.0% net margin
Moderate debt · generates free cash flow
5.20% dividend yield
Ranks above peers (11/15)
Moderate moat 60/100
Evidence: High Range £11.63 – £39.45 Share as image

Fair value as of: Aug 20, 2026

From 26 valuation models · updated yesterday

Fair value updated Aug 20, 2026, revised from £34.81 to £25.59 (−26.5%) since Aug 13, 2026. Share price +5.5% over the past month.

A solid business, screening 58% undervalued on our models.

What matters now

  • The model range is unusually wide (£11.63 to £39.45). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid quality (56/100) at a price below fair value, the discount is the argument here, not the business quality.
Share this valuation: 𝕏 WhatsApp

Price vs Fair Value (5 years)

£23.21 £10.57 Fair Value £25.59 Jun 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 20, 2026.

How to read this chart

60‑month range £10.57 – £23.21 · fair‑value band £11.63 – £39.45 · the £16.24 price screens below the £25.59 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 20, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

Hikma Pharmaceuticals PLC (HIK) currently trades at £16.24, while our model-based Fair Value estimate is £25.59, implying the stock looks roughly 57.6% undervalued today. The Quality Score stands at 56/100 (solid quality), in the Healthcare sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Hikma Pharmaceuticals PLC generated revenue of £3.3B at a net margin of 12.0%. Revenue grew 8.5% year over year. It earns a return on equity of 16.5%. Net debt stands at £1.3B. Fundamentals as of Aug 20, 2026

Our scenario range runs from £11.63 (bear case) to £39.45 (bull case); at £16.24, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Healthcare peers we cover trades at -40% fair-value upside, at 58%, HIK screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF £4.05 £10.30 £20.19 80
Residual Income £12.46 £16.00 £38.70 76
Rev-Margin DCF £15.73 £33.87 £56.79 74
All 26 models by family
DCF Models
FCF DCF £4.10 £10.90 £22.03 38
Owner Earnings £18.91 £36.42 £65.06 31
5Y Revenue Exit £15.73 £34.62 £60.55 39
5Y EBITDA Exit £23.63 £50.65 £84.68 41
5Y P/E Exit £17.34 £37.89 £61.32 38
10Y Revenue Exit £10.61 £26.89 £52.20 36
10Y EBITDA Exit £16.58 £38.26 £71.62 37
10Y P/E Exit £12.53 £29.21 £52.81 35
Earnings-Based
Graham-Dodd £13.27 £58.03 £79.40 54
Lynch FV £14.97 £21.38 £27.80 50
PEG = 1.0 £14.97 £21.38 £27.80 46
EPV £17.28 £20.85 £23.92 59
Dividend Discount
Gordon GGM £7.89 £15.71 £23.79 70
DDM Multi-Stage £7.89 £13.58 £16.59 61
Multiples
P/E Multiple £32.19 £42.92 £53.65 63
P/S Multiple £24.88 £33.17 £41.46 58
P/B Multiple £24.88 £33.17 £41.46 55
EV/EBIT £33.30 £46.17 £59.05 53
EV/EBITDA £37.29 £51.49 £65.70 54
EV/Revenue £22.25 £34.06 £45.87 43
Asset-Based
NCAV (Graham) £6.17 £8.26 £12.33 50
Growth DCF
Growth DCF £4.05 £10.30 £20.19 80
Rev-Margin DCF £15.73 £33.87 £56.79 74
Economic Profit
Residual Income £12.46 £16.00 £38.70 76
ROIC Compounder £19.13 £27.14 £37.87 72
Growth Earnings
Growth-Adj P/E £25.43 £36.33 £47.23 68

Widest divergence: Growth Earnings (£36.33) versus Asset-Based (£8.26). Highest evidence: Growth DCF (80).

Notify me when HIK reaches fair value

Free. You confirm by email (double opt-in) and can unsubscribe anytime in one click.

Key figures & financial health

Revenue (TTM) 3.3B GBX
Revenue growth (YoY) +8.5%
Net margin 12.0%
Return on equity 16.5%
Free cash flow 165M GBX FY2025
P/E ratio 11.9
More key figures
Operating margin 16.2%
EPS (TTM) £1.37
Dividend yield 5.2%
EPS growth (YoY) +23.5%
Net debt 1.3B GBX FY2025

Figures from reported company fundamentals · as of Aug 20, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 56/100

Of which business quality 52 · Market factors (momentum, volatility) 50

Profitability 50
Margins and returns on capital today
Quality Growth 39
Are margins and returns improving?
Cashflow 30
Earnings quality: real cash, not paper profit
Fin. Strength 55
Balance sheet, leverage, solvency risk
Investment 68
Disciplined investing over empire-building
Low Volatility 71
Calm price path (market factor)
Momentum 41
Price trend over the last 3–12 months (market factor)
52W Momentum 41
Distance to the 52-week high (market factor)
Net Issuance 85
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Hikma Pharmaceuticals PLC develops, manufactures, markets, and sells a range of generic, specialty, and branded pharmaceutical products. The company operates through three segments: Injectables, Hikma Rx, and Branded. The Injectables segment provides generic and specialty injectable products primarily for use in hospitals.

Full company description

Hikma Pharmaceuticals PLC develops, manufactures, markets, and sells a range of generic, specialty, and branded pharmaceutical products. The company operates through three segments: Injectables, Hikma Rx, and Branded. The Injectables segment provides generic and specialty injectable products primarily for use in hospitals. The Branded segment offers branded generics and in-licensed products to retail and hospital markets. The Hikma Rx segment offers oral, respiratory, and other generic and specialty products for the retail market. It provides its products in various therapeutic areas, including respiratory, oncology, and pain management. The company also offers its products in solid, semi-solid, liquid, and injectable dosage forms. It operates in the United Kingdom, Europe, North America, the Middle East, North Africa, and internationally. Hikma Pharmaceuticals PLC was founded in 1978 and is headquartered in London, United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hikma Pharmaceuticals PLC reported revenue of £3.4B in FY2025 versus £2.6B in FY2021, a compound +7.6%/yr. Reported net income was £410M in FY2025, compounding −0.6%/yr from FY2021.

Growth Quality 72/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
£3.4B
Latest YoY
+9.3%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.8%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.9%
Avg. growth/yr (23Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+17.4%
Revenue +7.6%/yr
FY21 £2.6B
FY22 £2.5B
FY23 £2.9B
FY24 £3.1B
FY25 £3.4B
Net income −0.6%/yr
FY21 £421M
FY22 £188M
FY23 £190M
FY24 £359M
FY25 £410M
Character of growth · EPS growth decomposed (2014-2025) +3.2 % p.a.
Revenue per share +7.0 pp

of which total revenue +7.6 pp · buybacks/dilution −0.6 pp

EBIT margin −4.0 pp
Tax rate −0.2 pp
Residual (interest, one-offs) +0.5 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

Watch HIK: get an alert when its fair value changes →

Share or link this analysis
For bloggers & editors: embed code + live data

For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.

Cite: Fair Value Calculator (2026). "Hikma Pharmaceuticals PLC Fair Value". https://www.fairvalue-calculator.com/stock/HIK

Peer Group

Drug Manufacturers - Specialty & Generic · 638 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 56 · Above median
Fair Value upside +58% · Top 25%
Return on equity (TTM) 17% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 12% · Above median
Operating margin (TTM) 16% · Above median
Revenue growth 9% · Above median
Dividend yield (TTM) 5.2% · Top 25%
Debt / equity 0.56× · Higher than 75% of peers

Valuation Multiples vs Drug Manufacturers - Specialty & Generic median · lower = cheaper

P/E (TTM) 11.9× · Cheaper than 75% of peers
P/B 1.75× · Pricier than median
P/S (TTM) 1.36× · Cheaper than median
P/FCF 27.5× · Pricier than 75% of peers
EV/EBITDA 6.7× · Cheaper than median
PEG 2.38× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 4
FUTURE43 · sector 20
PAST66 · sector 23
HEALTH72 · sector 97
DIVIDEND100 · sector 30

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Drug Manufacturers - Specialty & Generic stocks, each showing price versus our Fair Value estimate (as of Aug 20, 2026).

Stock Price Fair Value vs Fair Value
Jiangsu Hengrui Pharmaceuticals Co 1276 HK$56.05 HK$33.59 -40%
Sun Pharmaceutical Industries Limited SUNPHARMA ₹1,944 ₹989.50 -49%
Divi's Laboratories Limited DIVISLAB ₹8,525 ₹1,228 -86%
Torrent Pharmaceuticals Limited TORNTPHARM ₹4,915 ₹1,163 -76%
PharmaEssentia Corporation 6446 1,440 TWD 233.93 TWD -84%
Cipla Limited CIPLA ₹1,463 ₹1,001 -32%
Zydus Lifesciences Limited ZYDUSLIFE ₹1,167 ₹703.32 -40%
Lupin Limited LUPIN ₹2,281 ₹2,477 +9%
Mankind Pharma Limited MANKIND ₹2,433 ₹983.11 -60%
Dr. Reddy's Laboratories Limited DRREDDY ₹1,200 ₹874.79 -27%

Compare Hikma Pharmaceuticals PLC with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Healthcare stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Discover undervalued stocks

Pick a strategy and jump into the live analysis with that exact screen applied.

🥇 Backtested Best 🏆 Big Names ⭐ Top Rated 💎 Quality on Sale 🚀 Profitable Growth 🧊 Quality Compounders 💵 Dividend Stars 📈 Strong Momentum 📉 Fallen Angels ⚖️ Deeply Undervalued 🔍 Small-Cap Gems 🏰 Moat at a Fair Price 💼 Insider Buying 🎩 Buffett-Style Quality 📚 Peter Lynch GARP 🧮 Greenblatt Magic Formula 🛡️ Graham Defensive

Discover tools

Stock screener Filter by region, size and sector Compare tool Two stocks side by side Evidence & backtest 34 years, survivorship-adjusted Financial calculators DCF, Graham, PEG and more

Frequently asked questions

Is Hikma Pharmaceuticals PLC (HIK) overvalued or undervalued?
As of Aug 20, 2026, our model estimates a fair value of £25.59 versus a price of £16.24, about +58% (undervalued).
What is the fair value of HIK?
Our model-based fair value for Hikma Pharmaceuticals PLC is £25.59 (as of Aug 20, 2026), built from audited fundamentals. The current price: £16.24.
What is the quality score of HIK?
Hikma Pharmaceuticals PLC has a Quality Score of 56/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Hikma Pharmaceuticals PLC (HIK)?
Hikma Pharmaceuticals PLC reported trailing-twelve-month revenue of about £3.3B (latest available figure, as of Aug 20, 2026).
What is the net profit margin of HIK?
The net profit margin of Hikma Pharmaceuticals PLC is about 12.0%, meaning it keeps roughly 12.0% of revenue as net income. Based on the latest reported figures.
Does Hikma Pharmaceuticals PLC pay a dividend?
Hikma Pharmaceuticals PLC currently shows a dividend yield of about 5.91% relative to its recent price (as of Aug 20, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

14 days Pro free · no card

Track Hikma Pharmaceuticals PLC and try Pro for 14 days

One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.

Zero risk: nothing is ever charged. After 14 days you decide whether to stay.