Hikma PharmaceuticalsHKMPY 87 ROE % is 12.79% as of Dec. 2025, which is 20% below its 10-year median of 15.95. 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 936 Drug Manufacturers companies, Hikma Pharmaceuticals ranks better than 80.24% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Hikma Pharmaceuticals's ROE % distribution charts can be found below:
* The bar in red indicates where Hikma Pharmaceuticals's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
Hikma Pharmaceuticals (HKMPY) has a ROE % of 12.79% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Hikma Pharmaceuticals and its competitors. This is 20% below median its historical median of 15.95. According to the industry distribution chart, Hikma Pharmaceuticals ranks #185 out of 936 companies in the Drug Manufacturers industry, placing it in the top 19.8%.
Is Hikma Pharmaceuticals' ROE % too high?
Hikma Pharmaceuticals' current ROE % of 12.79% is 20% below median its 10-year median of 15.95. The Drug Manufacturers industry median ROE % is 5.87. Hikma Pharmaceuticals' value of 12.79% is 118.1% above this industry median. Based on the distribution chart, Hikma Pharmaceuticals ranks #185 out of 936 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. 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' ROE % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Hikma Pharmaceuticals ranks #185 out of 936 companies for ROE %. This places Hikma Pharmaceuticals in the top 20% of its industry — outperforming the majority of peers. The industry median ROE % is 5.87. Hikma Pharmaceuticals' value of 12.79% is 118.1% above this benchmark. While the company's 10-year median is 15.95 vs. the industry median of 5.87, 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 ROE % for a Drug Manufacturers company?
The median ROE % among Drug Manufacturers companies is 5.87, based on 936 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hikma Pharmaceuticals's current ROE % of 12.79% is 118.1% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Hikma Pharmaceuticals and its competitors. For the Drug Manufacturers industry, the median ROE % is 5.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hikma Pharmaceuticals's current ROE % is 12.79%, which is 20% below median its own 10-year median of 15.95. 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 ROE % is 12.79%, which is 20% below median its 10-year median of 15.95 and 118.1% above the Drug Manufacturers industry median of 5.87. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Hikma Pharmaceuticals (HKMPY), the current ROE % is 12.79% 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:
ROE %: 12.79% (20% below median its 10-year median of 15.95)
GF Value™: $56.75 vs. price of $41.23 (27.3% below fair value)
Industry Position: 118.1% above the Drug Manufacturers median (#185 of 936)
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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