HUTCHMED CHINA-ADR(NASDAQ:HCM) stock Fundamental Analysis

Fundamental Rating

Taking everything into account, HCM scores 4 out of 10 in our fundamental rating. HCM was compared to 198 industry peers in the Pharmaceuticals industry. The financial health of HCM is average, but there are quite some concerns on its profitability. HCM is not valued too expensively and it also shows a decent growth rate.

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1. Profitability

1.1 Basic Checks

In the past year HCM was profitable.

In the past year HCM has reported a negative cash flow from operations.

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 77.78% of its industry peers.

The Return On Equity of HCM (-5.67%) is better than 78.28% of its industry peers.

		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

HCM has a better Gross Margin (41.67%) than 60.10% of its industry peers.

HCM's Gross Margin has improved in the last couple of years.

The Profit Margin and Operating Margin are not available for HCM so they could not be analyzed.

		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.

There is no outstanding debt for HCM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

HCM has an Altman-Z score of 2.83. This is not the best score and indicates that HCM is in the grey zone with still only limited risk for bankruptcy at the moment.

With a decent Altman-Z score value of 2.83, HCM is doing good in the industry, outperforming 74.24% 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.

HCM's Debt to Equity ratio of 0.11 is in line compared to the rest of the industry. HCM outperforms 51.01% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.11
Debt/FCF	N/A
Altman-Z	2.83

ROIC/WACCN/A

WACC9.64%

2.3 Liquidity

A Current Ratio of 2.81 indicates that HCM has no problem at all paying its short term obligations.

HCM has a Current ratio (2.81) which is in line with its industry peers.

A Quick Ratio of 2.68 indicates that HCM has no problem at all paying 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

HCM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -62.32%.

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

Measured over the past years, HCM shows a very strong growth in Revenue. The Revenue has been growing by 25.20% on average per year.

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.

The Revenue is expected to grow by 20.25% on average over the next years. This is a very strong growth

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 3Y14.34%

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

The Price/Earnings ratio is 68.18, which means the current valuation is very expensive for HCM.

Compared to the rest of the industry, the Price/Earnings ratio of HCM indicates a somewhat cheap valuation: HCM is cheaper than 78.79% of the companies listed in the same industry.

HCM is valuated expensively when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.

A Price/Forward Earnings ratio of 6.31 indicates a rather cheap valuation of HCM.

95.45% of the companies in the same industry are more expensive than HCM, based on the Price/Forward Earnings ratio.

HCM is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	68.18
Fwd PE	6.31

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)0.08

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 (5/2/2025, 8:00:01 PM)

After market: 15 0 (0%)

+0.2 (+1.35%)

Chartmill FA Rating

GICS SectorHealth Care

GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences

GICS IndustryPharmaceuticals

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

Earnings (Next)07-29 2025-07-29

Inst Owners20.21%

Inst Owner Change-0.31%

Ins Owners0.78%

Ins Owner ChangeN/A

Market Cap2.56B

Analysts85.93

Price Target17.62 (17.47%)

Short Float %0.51%

Short Ratio4.78

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)2.04%

PT rev (3m)8.41%

EPS NQ rev (1m)N/A

EPS NQ rev (3m)N/A

EPS NY rev (1m)9.58%

EPS NY rev (3m)323.85%

Revenue NQ rev (1m)N/A

Revenue NQ rev (3m)N/A

Revenue NY rev (1m)-10.95%

Revenue NY rev (3m)-11.21%

Valuation

		Industry Rank	Sector Rank
PE	68.18
Fwd PE	6.31
P/S	4.2
P/FCF	N/A
P/OCF	N/A
P/B	3.46
P/tB	3.46
EV/EBITDA	N/A

EPS(TTM)0.22

EY1.47%

EPS(NY)2.38

Fwd EY15.85%

FCF(TTM)-0.38

FCFYN/A

OCF(TTM)-0.27

OCFYN/A

SpS3.57

BVpS4.33

TBVpS4.33

PEG (NY)0.08

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	2.83

F-ScoreN/A

WACC9.64%

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 3Y14.34%

Revenue Next 5Y20.25%

EBIT growth 1Y-21.67%

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next Year176.05%

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

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5. Dividend

5.1 Amount

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