Hikma PharmaceuticalsHKMPY 87 Gross Margin % is 42.93% as of Dec. 2025, which is 13% below its 10-year median of 49.63. GuruFocus rates HKMPY with a GF Score™ of 87/100 and a GF Value™ of $56.71 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 935 Drug Manufacturers companies, Hikma Pharmaceuticals ranks worse than 59.47% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Hikma Pharmaceuticals had a gross margin of 42.93% for the quarter that ended in Dec. 2025 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Hikma Pharmaceuticals Gross Margin % Related Terms
Hikma Pharmaceuticals Gross Margin % Historical Data
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The historical data trend for Hikma Pharmaceuticals's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HKMPY vs ZTS, UTHR, VTRS: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Hikma Pharmaceuticals's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Hikma Pharmaceuticals Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Hikma Pharmaceuticals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hikma Pharmaceuticals's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Hikma Pharmaceuticals (HKMPY) has a Gross Margin % of 42.93% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Hikma Pharmaceuticals and its competitors. This is 13% below median its historical median of 49.63. Over the past decade, Hikma Pharmaceuticals' Gross Margin % has ranged from 43.03 to 51.30. According to the industry distribution chart, Hikma Pharmaceuticals ranks #556 out of 935 companies in the Drug Manufacturers industry, placing it in the top 59.5%.
Is Hikma Pharmaceuticals' Gross Margin % too high?
Hikma Pharmaceuticals' current Gross Margin % of 42.93% is 13% below median its 10-year median of 49.63. Over the past 10 years, this metric has ranged from a low of 43.03 to a high of 51.30. The Drug Manufacturers industry median Gross Margin % is 48.54. Hikma Pharmaceuticals' value of 42.93% is 11.6% below this industry median. Based on the distribution chart, Hikma Pharmaceuticals ranks #556 out of 935 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Hikma Pharmaceuticals has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hikma Pharmaceuticals' Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Hikma Pharmaceuticals ranks #556 out of 935 companies for Gross Margin %. This places Hikma Pharmaceuticals in the lower half of its industry. The industry median Gross Margin % is 48.54. Hikma Pharmaceuticals' value of 42.93% is 11.6% below this benchmark. Historically, Hikma Pharmaceuticals' own Gross Margin % has ranged from 43.03 to 51.30 over the past decade. While the company's 10-year median is 49.63 vs. the industry median of 48.54, Hikma Pharmaceuticals has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.54, based on 935 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hikma Pharmaceuticals's current Gross Margin % of 42.93% is 11.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Hikma Pharmaceuticals and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hikma Pharmaceuticals's current Gross Margin % is 42.93%, which is 13% below median its own 10-year median of 49.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hikma Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Hikma Pharmaceuticals (HKMPY) is currently considered Modestly Undervalued. The stock's GF Value™ is $56.71, compared to a current price of $41.23 — trading 27.3% below its estimated fair value. The current Gross Margin % is 42.93%, which is 13% below median its 10-year median of 49.63 and 11.6% below the Drug Manufacturers industry median of 48.54. Hikma Pharmaceuticals' overall GF Score™ is 87/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Hikma Pharmaceuticals (HKMPY), the current Gross Margin % is 42.93% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Hikma Pharmaceuticals (HKMPY) Overvalued in 2026?
Based on GuruFocus' analysis, Hikma Pharmaceuticals stock appears to be undervalued.
The current stock price of $41.23 is trading 27.3% below its estimated GF Value™ of $56.71.
GuruFocus considers Hikma Pharmaceuticals to be Modestly Undervalued.
Key valuation signals for HKMPY:
Gross Margin %: 42.93% (13% below median its 10-year median of 49.63)
GF Value™: $56.71 vs. price of $41.23 (27.3% below fair value)
Industry Position: 11.6% below the Drug Manufacturers median (#556 of 935)
No single metric tells the full story. See the HKMPY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hikma Pharmaceuticals PLC is engaged in developing, manufacturing, and marketing a broad range of generic, branded, and in-licensed pharmaceutical products. The firm operates in three segments: injectables, Rx, and branded. The majority of the company's revenue is generated from its injectables segment, which supplies hospitals across markets with generic injectable products, supported by its manufacturing facilities. Geographically, North America is the company's key revenue-generating market, followed by the Middle East and North Africa, the United Kingdom, Europe, and the rest of the world.
87GF Score
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