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HUTCHMED CHINA-ADR (HCM) Stock Fundamental Analysis

NASDAQ:HCM - Nasdaq - US44842L1035 - ADR - Currency: USD

15.3  +0.6 (+4.08%)

After market: 15.38 +0.08 (+0.52%)

Fundamental Rating

4

Overall HCM gets a fundamental rating of 4 out of 10. We evaluated HCM against 195 industry peers in the Pharmaceuticals industry. While HCM seems to be doing ok healthwise, there are quite some concerns on its profitability. HCM has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

In the past year HCM was profitable.
HCM had a negative operating cash flow in the past year.
In multiple years HCM reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: HCM reported negative operating cash flow in multiple years.
HCM Yearly Net Income VS EBIT VS OCF VS FCFHCM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M -400M

1.2 Ratios

HCM's Return On Assets of -3.33% is fine compared to the rest of the industry. HCM outperforms 78.46% of its industry peers.
HCM's Return On Equity of -5.67% is fine compared to the rest of the industry. HCM outperforms 79.49% of its industry peers.
Industry RankSector 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
HCM Yearly ROA, ROE, ROICHCM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -20 -40

1.3 Margins

HCM has a Gross Margin of 41.67%. This is in the better half of the industry: HCM outperforms 62.05% 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 RankSector 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%
HCM Yearly Profit, Operating, Gross MarginsHCM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50

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4

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.
HCM Yearly Shares OutstandingHCM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M
HCM Yearly Total Debt VS Total AssetsHCM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M 1B

2.2 Solvency

HCM has an Altman-Z score of 2.77. 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.
HCM's Altman-Z score of 2.77 is fine compared to the rest of the industry. HCM outperforms 72.82% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that HCM is not too dependend on debt financing.
HCM has a Debt to Equity ratio (0.11) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.11
Debt/FCF N/A
Altman-Z 2.77
ROIC/WACCN/A
WACC10%
HCM Yearly LT Debt VS Equity VS FCFHCM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M 600M 800M

2.3 Liquidity

A Current Ratio of 2.81 indicates that HCM has no problem at all paying its short term obligations.
The Current ratio of HCM (2.81) is comparable to the rest of the 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 of 2.68. This is comparable to the rest of the industry: HCM outperforms 51.28% of its industry peers.
Industry RankSector Rank
Current Ratio 2.81
Quick Ratio 2.68
HCM Yearly Current Assets VS Current LiabilitesHCM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M 1B

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6

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
HCM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.20% yearly.
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

The Earnings Per Share is expected to grow by 74.05% on average over the next years. This is a very strong growth
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 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.
HCM Yearly Revenue VS EstimatesHCM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 500M 1B 1.5B
HCM Yearly EPS VS EstimatesHCM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 1 -1 2 -2

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5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 69.55, HCM can be considered very expensive at the moment.
HCM's Price/Earnings ratio is a bit cheaper when compared to the industry. HCM is cheaper than 77.95% of the companies in the same industry.
HCM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.43.
With a Price/Forward Earnings ratio of 6.43, the valuation of HCM can be described as very cheap.
HCM's Price/Forward Earnings ratio is rather cheap when compared to the industry. HCM is cheaper than 94.36% of the companies in the same industry.
HCM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.17.
Industry RankSector Rank
PE 69.55
Fwd PE 6.43
HCM Price Earnings VS Forward Price EarningsHCM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
HCM Per share dataHCM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3 4

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.
HCM's earnings are expected to grow with 74.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y102.07%
EPS Next 3Y74.05%

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0

5. Dividend

5.1 Amount

HCM does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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HUTCHMED CHINA-ADR

NASDAQ:HCM (6/4/2025, 8:00:01 PM)

After market: 15.38 +0.08 (+0.52%)

15.3

+0.6 (+4.08%)

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-4.43%
Ins Owners0.78%
Ins Owner ChangeN/A
Market Cap2.62B
Analysts85.93
Price Target17.17 (12.22%)
Short Float %0.44%
Short Ratio4.65
Dividend
Industry RankSector 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)-2.58%
PT rev (3m)5.62%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)265.13%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-9.52%
Valuation
Industry RankSector Rank
PE 69.55
Fwd PE 6.43
P/S 4.28
P/FCF N/A
P/OCF N/A
P/B 3.53
P/tB 3.53
EV/EBITDA N/A
EPS(TTM)0.22
EY1.44%
EPS(NY)2.38
Fwd EY15.54%
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 RankSector 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 RankSector 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 2.77
F-ScoreN/A
WACC10%
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