HCM Fundamental Analysis - HUTCHMED CHINA-ADR

Fundamental Rating

Taking everything into account, HCM scores 4 out of 10 in our fundamental rating. HCM was compared to 194 industry peers in the Pharmaceuticals industry. HCM scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. HCM has a correct valuation and a medium growth rate.

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1. Profitability

1.1 Basic Checks

In the past year HCM was profitable.

HCM had a negative operating cash flow in the past year.

The reported net income has been mixed in the past 5 years: HCM reported negative net income in multiple years.

The reported operating cash flow has been mixed in the past 5 years: HCM reported negative operating cash flow in multiple years.

1.2 Ratios

HCM has a Return On Assets of -3.33%. This is in the better half of the industry: HCM outperforms 78.87% of its industry peers.

Looking at the Return On Equity, with a value of -5.67%, HCM is in the better half of the industry, outperforming 79.90% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	-3.33%
ROE	-5.67%
ROIC	N/A

ROA(3y)N/A

ROA(5y)N/A

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

The Gross Margin of HCM (41.67%) is better than 61.86% of its industry peers.

In the last couple of years the Gross Margin of HCM has grown nicely.

HCM does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	N/A
GM	41.67%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y17.54%

GM growth 5Y15.38%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

HCM does not have a ROIC to compare to the WACC, probably because it is not profitable.

HCM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

HCM has an Altman-Z score of 3.03. This indicates that HCM is financially healthy and has little risk of bankruptcy at the moment.

Looking at the Altman-Z score, with a value of 3.03, HCM is in the better half of the industry, outperforming 74.23% of the companies in the same industry.

HCM has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.

The Debt to Equity ratio of HCM (0.11) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.11
Debt/FCF	N/A
Altman-Z	3.03

ROIC/WACCN/A

WACC9.91%

2.3 Liquidity

HCM has a Current Ratio of 2.81. This indicates that HCM is financially healthy and has no problem in meeting its short term obligations.

Looking at the Current ratio, with a value of 2.81, HCM is in line with its industry, outperforming 48.97% of the companies in the same industry.

HCM has a Quick Ratio of 2.68. This indicates that HCM is financially healthy and has no problem in meeting its short term obligations.

HCM has a Quick ratio (2.68) which is in line with its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.81
Quick Ratio	2.68

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for HCM have decreased strongly by -62.32% in the last year.

The Revenue for HCM has decreased by -24.80% in the past year. This is quite bad

The Revenue has been growing by 25.20% on average over the past years. This is a very strong growth!

EPS 1Y (TTM)-62.32%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%117.23%

Revenue 1Y (TTM)-24.8%

Revenue growth 3Y20.96%

Revenue growth 5Y25.2%

Sales Q2Q%6.36%

3.2 Future

HCM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 74.05% yearly.

HCM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.25% yearly.

EPS Next Y830%

EPS Next 2Y102.07%

EPS Next 3Y74.05%

EPS Next 5YN/A

Revenue Next Year4.34%

Revenue Next 2Y11.68%

Revenue Next 3Y13.78%

Revenue Next 5Y20.25%

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 72.91 indicates a quite expensive valuation of HCM.

78.35% of the companies in the same industry are more expensive than HCM, based on the Price/Earnings ratio.

Compared to an average S&P500 Price/Earnings ratio of 27.30, HCM is valued quite expensively.

A Price/Forward Earnings ratio of 6.75 indicates a rather cheap valuation of HCM.

HCM's Price/Forward Earnings ratio is rather cheap when compared to the industry. HCM is cheaper than 91.75% of the companies in the same industry.

Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, HCM is valued rather cheaply.

		Industry Rank	Sector Rank
PE	72.91
Fwd PE	6.75

4.2 Price Multiples

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	N/A

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

A more expensive valuation may be justified as HCM's earnings are expected to grow with 74.05% in the coming years.

PEG (NY)0.09

PEG (5Y)N/A

EPS Next 2Y102.07%

EPS Next 3Y74.05%

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5. Dividend

5.1 Amount

HCM does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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HUTCHMED CHINA-ADR

NASDAQ:HCM (7/11/2025, 8:20:12 PM)

After market: 16.04 0 (0%)

16.04

+0.07 (+0.44%)

Chartmill FA Rating

GICS SectorHealth Care

GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences

GICS IndustryPharmaceuticals

Earnings (Last)03-19 2025-03-19/bmo

Earnings (Next)08-07 2025-08-07

Inst Owners21.98%

Inst Owner Change0%

Ins Owners0.58%

Ins Owner ChangeN/A

Market Cap2.74B

Analysts85.19

Price Target17.35 (8.17%)

Short Float %0.45%

Short Ratio5.68

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Yearly DividendN/A

Dividend Growth(5Y)N/A

DPN/A

Div Incr Years0

Div Non Decr Years0

Ex-DateN/A

Surprises & Revisions

EPS beat(2)N/A

Avg EPS beat(2)N/A

Min EPS beat(2)N/A

Max EPS beat(2)N/A

EPS beat(4)N/A

Avg EPS beat(4)N/A

Min EPS beat(4)N/A

Max EPS beat(4)N/A

EPS beat(8)N/A

Avg EPS beat(8)N/A

EPS beat(12)N/A

Avg EPS beat(12)N/A

EPS beat(16)N/A

Avg EPS beat(16)N/A

Revenue beat(2)N/A

Avg Revenue beat(2)N/A

Min Revenue beat(2)N/A

Max Revenue beat(2)N/A

Revenue beat(4)N/A

Avg Revenue beat(4)N/A

Min Revenue beat(4)N/A

Max Revenue beat(4)N/A

Revenue beat(8)N/A

Avg Revenue beat(8)N/A

Revenue beat(12)N/A

Avg Revenue beat(12)N/A

Revenue beat(16)N/A

Avg Revenue beat(16)N/A

PT rev (1m)8.78%

PT rev (3m)1.46%

EPS NQ rev (1m)N/A

EPS NQ rev (3m)N/A

EPS NY rev (1m)-0.06%

EPS NY rev (3m)9.49%

Revenue NQ rev (1m)N/A

Revenue NQ rev (3m)N/A

Revenue NY rev (1m)0%

Revenue NY rev (3m)-10.95%

Valuation

		Industry Rank	Sector Rank
PE	72.91
Fwd PE	6.75
P/S	4.49
P/FCF	N/A
P/OCF	N/A
P/B	3.71
P/tB	3.71
EV/EBITDA	N/A

EPS(TTM)0.22

EY1.37%

EPS(NY)2.38

Fwd EY14.81%

FCF(TTM)-0.38

FCFYN/A

OCF(TTM)-0.27

OCFYN/A

SpS3.57

BVpS4.33

TBVpS4.33

PEG (NY)0.09

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	-3.33%
ROE	-5.67%
ROCE	N/A
ROIC	N/A
ROICexc	N/A
ROICexgc	N/A
OM	N/A
PM (TTM)	N/A
GM	41.67%
FCFM	N/A

ROA(3y)N/A

ROA(5y)N/A

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

ROICexc(3y)N/A

ROICexc(5y)N/A

ROICexgc(3y)N/A

ROICexgc(5y)N/A

ROCE(3y)N/A

ROCE(5y)N/A

ROICexcg growth 3YN/A

ROICexcg growth 5YN/A

ROICexc growth 3YN/A

ROICexc growth 5YN/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y17.54%

GM growth 5Y15.38%

F-ScoreN/A

Asset Turnover0.48

Health

		Industry Rank	Sector Rank
Debt/Equity	0.11
Debt/FCF	N/A
Debt/EBITDA	N/A
Cap/Depr	172.45%
Cap/Sales	3.01%
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	N/A
Current Ratio	2.81
Quick Ratio	2.68
Altman-Z	3.03

F-ScoreN/A

WACC9.91%

ROIC/WACCN/A

Cap/Depr(3y)321.95%

Cap/Depr(5y)304.39%

Cap/Sales(3y)5.11%

Cap/Sales(5y)5.73%

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)-62.32%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%117.23%

EPS Next Y830%

EPS Next 2Y102.07%

EPS Next 3Y74.05%

EPS Next 5YN/A

Revenue 1Y (TTM)-24.8%

Revenue growth 3Y20.96%

Revenue growth 5Y25.2%

Sales Q2Q%6.36%

Revenue Next Year4.34%

Revenue Next 2Y11.68%

Revenue Next 3Y13.78%

Revenue Next 5Y20.25%

EBIT growth 1Y-21.67%

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next Year123.05%

EBIT Next 3Y61.78%

EBIT Next 5Y48.51%

FCF growth 1Y-2829.24%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y-198.56%

OCF growth 3YN/A

OCF growth 5YN/A

HUTCHMED CHINA-ADR (HCM) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

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