Hikma Pharmaceuticals (HIK.L)
Healthcare · LSE · UK
Fundamentals
Valuation and ratings
Hikma Pharmaceuticals trades at £15.51, which is 125% below the £34.85 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 56 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 11.6 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Hikma Pharmaceuticals
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.
HIK.L passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Hikma Pharmaceuticals (HIK.L) undervalued?
Against our discounted cash flow estimate of £34.85, HIK.L at £15.51 is 125% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is HIK.L's P/E ratio?
HIK.L trades at 11.6 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.