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HUTCHMED CHINA-ADR (HCM) Stock Fundamental Analysis

USA - NASDAQ:HCM - US44842L1035 - ADR

16.39 USD
+0.41 (+2.57%)
Last: 10/8/2025, 8:00:01 PM
16.39 USD
0 (0%)
After Hours: 10/8/2025, 8:00:01 PM
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to HCM. HCM was compared to 196 industry peers in the Pharmaceuticals industry. HCM has only an average score on both its financial health and profitability. HCM is growing strongly while it is still valued neutral. This is a good combination!


Dividend Valuation Growth Profitability Health

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4

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.
In multiple years HCM reported negative operating cash flow during the last 5 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

The Return On Assets of HCM (26.29%) is better than 98.47% of its industry peers.
The Return On Equity of HCM (37.99%) is better than 96.94% of its industry peers.
Industry RankSector Rank
ROA 26.29%
ROE 37.99%
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 better Profit Margin (77.53%) than 99.49% of its industry peers.
HCM has a better Gross Margin (44.15%) than 61.22% of its industry peers.
In the last couple of years the Gross Margin of HCM has grown nicely.
Industry RankSector Rank
OM N/A
PM (TTM) 77.53%
GM 44.15%
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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5

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 3.86. This indicates that HCM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HCM (3.86) is better than 75.51% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that HCM is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.08, HCM is in line with its industry, outperforming 51.02% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.08
Debt/FCF N/A
Altman-Z 3.86
ROIC/WACCN/A
WACC8.78%
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 4.65 indicates that HCM has no problem at all paying its short term obligations.
HCM has a Current ratio of 4.65. This is in the better half of the industry: HCM outperforms 66.84% of its industry peers.
A Quick Ratio of 4.51 indicates that HCM has no problem at all paying its short term obligations.
The Quick ratio of HCM (4.51) is better than 66.84% of its industry peers.
Industry RankSector Rank
Current Ratio 4.65
Quick Ratio 4.51
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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7

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 1172.34% over the past year.
HCM shows a decrease in Revenue. In the last year, the revenue decreased by -1.41%.
HCM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.20% yearly.
EPS 1Y (TTM)1172.34%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1661.49%
Revenue 1Y (TTM)-1.41%
Revenue growth 3Y20.96%
Revenue growth 5Y25.2%
Sales Q2Q%-9.16%

3.2 Future

HCM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 52.74% 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 Y897.09%
EPS Next 2Y86.15%
EPS Next 3Y60.79%
EPS Next 5Y52.74%
Revenue Next Year-11.78%
Revenue Next 2Y0.94%
Revenue Next 3Y6.11%
Revenue Next 5Y20.25%

3.3 Evolution

The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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 2028 0 1 -1 2 -2

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5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 6.03, the valuation of HCM can be described as very cheap.
Based on the Price/Earnings ratio, HCM is valued cheaper than 95.92% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.91, HCM is valued rather cheaply.
HCM is valuated quite expensively with a Price/Forward Earnings ratio of 34.55.
Based on the Price/Forward Earnings ratio, HCM is valued a bit cheaper than the industry average as 70.41% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.30, HCM is valued a bit more expensive.
Industry RankSector Rank
PE 6.03
Fwd PE 34.55
HCM Price Earnings VS Forward Price EarningsHCM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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 2 4 6

4.3 Compensation for Growth

HCM's 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 60.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y86.15%
EPS Next 3Y60.79%

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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 (10/8/2025, 8:00:01 PM)

After market: 16.39 0 (0%)

16.39

+0.41 (+2.57%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)08-07 2025-08-07/bmo
Earnings (Next)03-17 2026-03-17/amc
Inst Owners21.97%
Inst Owner Change0%
Ins Owners0.58%
Ins Owner ChangeN/A
Market Cap2.82B
Analysts83.7
Price Target17.05 (4.03%)
Short Float %0.42%
Short Ratio8.28
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)-2.11%
PT rev (3m)-1.75%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)3.93%
EPS NY rev (3m)8.62%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-5.47%
Revenue NY rev (3m)-15.45%
Valuation
Industry RankSector Rank
PE 6.03
Fwd PE 34.55
P/S 4.68
P/FCF N/A
P/OCF N/A
P/B 2.29
P/tB 2.29
EV/EBITDA N/A
EPS(TTM)2.72
EY16.6%
EPS(NY)0.47
Fwd EY2.89%
FCF(TTM)-0.35
FCFYN/A
OCF(TTM)-0.19
OCFYN/A
SpS3.5
BVpS7.15
TBVpS7.15
PEG (NY)0.01
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 26.29%
ROE 37.99%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 77.53%
GM 44.15%
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-Score5
Asset Turnover0.34
Health
Industry RankSector Rank
Debt/Equity 0.08
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 221.94%
Cap/Sales 4.5%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 4.65
Quick Ratio 4.51
Altman-Z 3.86
F-Score5
WACC8.78%
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)1172.34%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1661.49%
EPS Next Y897.09%
EPS Next 2Y86.15%
EPS Next 3Y60.79%
EPS Next 5Y52.74%
Revenue 1Y (TTM)-1.41%
Revenue growth 3Y20.96%
Revenue growth 5Y25.2%
Sales Q2Q%-9.16%
Revenue Next Year-11.78%
Revenue Next 2Y0.94%
Revenue Next 3Y6.11%
Revenue Next 5Y20.25%
EBIT growth 1Y83.69%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year98.89%
EBIT Next 3Y51.23%
EBIT Next 5Y43.18%
FCF growth 1Y-2591.94%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-168.32%
OCF growth 3YN/A
OCF growth 5YN/A