Hikma PharmaceuticalsHKMPY 87 ROA % is 5.84% as of Dec. 2025, which is 20% below its 10-year median of 7.28. GuruFocus rates HKMPY with a GF Score™ of 87/100 and a GF Value™ of $56.75 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,006 Drug Manufacturers companies, Hikma Pharmaceuticals ranks better than 73.26% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Hikma Pharmaceuticals's annualizedNet Income for the quarter that ended in Dec. 2025 was $328 Mil.
Hikma Pharmaceuticals's average Total Assets over the quarter that ended in Dec. 2025 was $5,613 Mil. Therefore, Hikma Pharmaceuticals's annualized ROA % for the quarter that ended in Dec. 2025 was 5.84%.
The historical rank and industry rank for Hikma Pharmaceuticals's ROA % or its related term are showing as below:
HKMPY'
s ROA % Range Over the Past 10 Years
Min: -20.89 Med: 7.28 Max: 12.87
Current: 7.21
During the past 13 years, Hikma Pharmaceuticals's highest ROA % was 12.87%. The lowest was -20.89%. And the median was 7.28%.
HKMPY's ROA % is ranked better than 73.26% of 1006
companies
in the Drug Manufacturers industry
Industry Median: 2.685
vs HKMPY: 7.21
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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.
For the Drug Manufacturers - Specialty & Generic subindustry, Hikma Pharmaceuticals's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Hikma Pharmaceuticals's ROA % distribution charts can be found below:
* The bar in red indicates where Hikma Pharmaceuticals's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Hikma Pharmaceuticals (HKMPY) has a ROA % of 5.84% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Hikma Pharmaceuticals and its competitors. This is 20% below median its historical median of 7.28. According to the industry distribution chart, Hikma Pharmaceuticals ranks #269 out of 1006 companies in the Drug Manufacturers industry, placing it in the top 26.7%.
Is Hikma Pharmaceuticals' ROA % too high?
Hikma Pharmaceuticals' current ROA % of 5.84% is 20% below median its 10-year median of 7.28. The Drug Manufacturers industry median ROA % is 2.69. Hikma Pharmaceuticals' value of 5.84% is 117.5% above this industry median. Based on the distribution chart, Hikma Pharmaceuticals ranks #269 out of 1006 companies in the Drug Manufacturers industry, which is above 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' ROA % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Hikma Pharmaceuticals ranks #269 out of 1006 companies for ROA %. This puts Hikma Pharmaceuticals in the upper half of its industry. The industry median ROA % is 2.69. Hikma Pharmaceuticals' value of 5.84% is 117.5% above this benchmark. While the company's 10-year median is 7.28 vs. the industry median of 2.69, Hikma Pharmaceuticals has consistently been above 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 ROA % for a Drug Manufacturers company?
The median ROA % among Drug Manufacturers companies is 2.69, based on 1,006 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hikma Pharmaceuticals's current ROA % of 5.84% is 117.5% above 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Hikma Pharmaceuticals and its competitors. For the Drug Manufacturers industry, the median ROA % is 2.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hikma Pharmaceuticals's current ROA % is 5.84%, which is 20% below median its own 10-year median of 7.28. 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 $56.75, compared to a current price of $41.23 — trading 27.3% below its estimated fair value. The current ROA % is 5.84%, which is 20% below median its 10-year median of 7.28 and 117.5% above the Drug Manufacturers industry median of 2.69. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Hikma Pharmaceuticals (HKMPY), the current ROA % is 5.84% 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 $56.75.
GuruFocus considers Hikma Pharmaceuticals to be Modestly Undervalued.
Key valuation signals for HKMPY:
ROA %: 5.84% (20% below median its 10-year median of 7.28)
GF Value™: $56.75 vs. price of $41.23 (27.3% below fair value)
Industry Position: 117.5% above the Drug Manufacturers median (#269 of 1006)
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
Get the complete analysis for HKMPY
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HKMPY has been successfully added to your 
