HUTCHMED CHINA-ADR (HCM)

US44842L1035 - ADR

13.825  -1.19 (-7.89%)

Fundamental Rating

3

HCM gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 195 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 is quite expensive at the moment. It does show a decent growth rate.



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2

1. Profitability

1.1 Basic Checks

HCM had negative earnings in the past year.
HCM had a negative operating cash flow in the past year.
HCM had negative earnings in 4 of the past 5 years.
HCM had negative operating cash flow in 4 of the past 5 years.

1.2 Ratios

With a decent Return On Assets value of -3.33%, HCM is doing good in the industry, outperforming 79.57% of the companies in the same industry.
HCM's Return On Equity of -5.67% is amongst the best of the industry. HCM outperforms 81.18% 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

1.3 Margins

The Gross Margin of HCM (41.67%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of HCM has grown nicely.
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 3Y46.23%
GM growth 5Y10.56%

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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.
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

An Altman-Z score of 2.83 indicates that HCM is not a great score, but indicates only limited risk for bankruptcy at the moment.
HCM has a better Altman-Z score (2.83) than 72.58% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that HCM is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.11, HCM perfoms like the industry average, outperforming 45.70% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.11
Debt/FCF N/A
Altman-Z 2.83
ROIC/WACCN/A
WACC10.73%

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.
HCM has a Current ratio of 2.81. This is comparable to the rest of the industry: HCM outperforms 47.31% of its industry peers.
A Quick Ratio of 2.68 indicates that HCM has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.68, HCM is in line with its industry, outperforming 50.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.81
Quick Ratio 2.68

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5

3. Growth

3.1 Past

HCM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.23%.
The Revenue for HCM has decreased by -19.34% in the past year. This is quite bad
The Revenue has been growing by 31.38% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-25.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-84.79%
Revenue 1Y (TTM)-19.34%
Revenue growth 3Y54.33%
Revenue growth 5Y31.38%
Sales Q2Q%-42.64%

3.2 Future

The Earnings Per Share is expected to grow by 106.12% on average over the next years. This is a very strong growth
Based on estimates for the next years, HCM will show a quite strong growth in Revenue. The Revenue will grow by 13.62% on average per year.
EPS Next Y-387.44%
EPS Next 2Y95.63%
EPS Next 3Y120.01%
EPS Next 5Y106.12%
Revenue Next Year-15.85%
Revenue Next 2Y0.78%
Revenue Next 3Y7.22%
Revenue Next 5Y13.62%

3.3 Evolution

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for HCM. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 48.49 indicates a quite expensive valuation of HCM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HCM indicates a somewhat cheap valuation: HCM is cheaper than 75.27% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.53, HCM is valued quite expensively.
Industry RankSector Rank
PE N/A
Fwd PE 48.49

4.2 Price Multiples

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

4.3 Compensation for Growth

A more expensive valuation may be justified as HCM's earnings are expected to grow with 120.01% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y95.63%
EPS Next 3Y120.01%

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0

5. Dividend

5.1 Amount

No dividends for HCM!.
Industry RankSector Rank
Dividend Yield N/A

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HUTCHMED CHINA-ADR

NASDAQ:HCM (1/15/2025, 12:32:05 PM)

13.825

-1.19 (-7.89%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)07-31 2024-07-31/bmo
Earnings (Next)N/A N/A
Inst Owners33%
Inst Owner Change0%
Ins Owners0.8%
Ins Owner ChangeN/A
Market Cap2.36B
Analysts85.22
Price Target16.92 (22.39%)
Short Float %0.48%
Short Ratio6.55
Dividend
Industry RankSector Rank
Dividend Yield N/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)-10.68%
PT rev (3m)-8.67%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.11%
EPS NY rev (3m)63.06%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.68%
Revenue NY rev (3m)-0.66%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 48.49
P/S 3.87
P/FCF N/A
P/OCF N/A
P/B 3.19
P/tB 3.19
EV/EBITDA N/A
EPS(TTM)-0.25
EYN/A
EPS(NY)0.29
Fwd EY2.06%
FCF(TTM)-0.38
FCFYN/A
OCF(TTM)-0.27
OCFYN/A
SpS3.57
BVpS4.33
TBVpS4.33
PEG (NY)N/A
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 3Y46.23%
GM growth 5Y10.56%
F-Score1
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 2.83
F-Score1
WACC10.73%
ROIC/WACCN/A
Cap/Depr(3y)351.2%
Cap/Depr(5y)309.99%
Cap/Sales(3y)5.73%
Cap/Sales(5y)5.99%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-25.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-84.79%
EPS Next Y-387.44%
EPS Next 2Y95.63%
EPS Next 3Y120.01%
EPS Next 5Y106.12%
Revenue 1Y (TTM)-19.34%
Revenue growth 3Y54.33%
Revenue growth 5Y31.38%
Sales Q2Q%-42.64%
Revenue Next Year-15.85%
Revenue Next 2Y0.78%
Revenue Next 3Y7.22%
Revenue Next 5Y13.62%
EBIT growth 1Y-21.67%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-87.62%
EBIT Next 3Y59.09%
EBIT Next 5Y63.13%
FCF growth 1Y73.44%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y78.91%
OCF growth 3YN/A
OCF growth 5YN/A