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HUTCHMED CHINA-ADR (HCM) Stock Fundamental Analysis

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

16.11  +0.78 (+5.09%)

Fundamental Rating

3

Overall HCM gets a fundamental rating of 3 out of 10. We evaluated HCM against 194 industry peers in the Pharmaceuticals industry. While HCM seems to be doing ok healthwise, there are quite some concerns on its profitability. HCM is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year HCM has reported negative net income.
HCM had a negative operating cash flow in the past year.
In the past 5 years HCM reported 4 times negative net income.
In the past 5 years HCM reported 4 times negative operating cash flow.
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 0 200M -200M -400M

1.2 Ratios

With a decent Return On Assets value of -3.33%, HCM is doing good in the industry, outperforming 77.84% of the companies in the same industry.
With a decent Return On Equity value of -5.67%, HCM is doing good in the industry, outperforming 80.00% of the companies in the same industry.
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 0 -20 -40

1.3 Margins

HCM's Gross Margin of 41.67% is in line compared to the rest of the industry. HCM outperforms 58.38% 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 3Y46.23%
GM growth 5Y10.56%
HCM Yearly Profit, Operating, Gross MarginsHCM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 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.
HCM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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 2.89. 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 2.89, HCM is doing good in the industry, outperforming 72.97% 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.
Looking at the Debt to Equity ratio, with a value of 0.11, HCM is in line with its industry, outperforming 45.41% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.11
Debt/FCF N/A
Altman-Z 2.89
ROIC/WACCN/A
WACC9.76%
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 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.
HCM's Current ratio of 2.81 is in line compared to the rest of the industry. HCM outperforms 47.57% 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 51.35% of the companies in the same industry.
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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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%.
HCM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -19.34%.
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

Based on estimates for the next years, HCM will show a very strong growth in Earnings Per Share. The EPS will grow by 106.12% on average per year.
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-312.35%
EPS Next 2Y174.41%
EPS Next 3Y117.83%
EPS Next 5Y106.12%
Revenue Next Year-16.15%
Revenue Next 2Y-0.21%
Revenue Next 3Y6.53%
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.
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 2029 2030 0 1 -1 -2

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1

4. Valuation

4.1 Price/Earnings Ratio

HCM reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 28.72, HCM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HCM indicates a somewhat cheap valuation: HCM is cheaper than 78.92% of the companies listed in the same industry.
HCM's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.68.
Industry RankSector Rank
PE N/A
Fwd PE 28.72
HCM Price Earnings VS Forward Price EarningsHCM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -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

A more expensive valuation may be justified as HCM's earnings are expected to grow with 117.83% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y174.41%
EPS Next 3Y117.83%

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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 (2/21/2025, 8:25:13 PM)

16.11

+0.78 (+5.09%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)N/A N/A
Earnings (Next)02-27 2025-02-27/amc
Inst Owners33%
Inst Owner Change-8%
Ins Owners0.8%
Ins Owner ChangeN/A
Market Cap2.75B
Analysts86.4
Price Target16.26 (0.93%)
Short Float %0.42%
Short Ratio5.36
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)-3.92%
PT rev (3m)-26.76%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)26.12%
EPS NY rev (3m)26.2%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-1.04%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 28.72
P/S 4.51
P/FCF N/A
P/OCF N/A
P/B 3.72
P/tB 3.72
EV/EBITDA N/A
EPS(TTM)-0.25
EYN/A
EPS(NY)0.56
Fwd EY3.48%
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 2.89
F-Score1
WACC9.76%
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-312.35%
EPS Next 2Y174.41%
EPS Next 3Y117.83%
EPS Next 5Y106.12%
Revenue 1Y (TTM)-19.34%
Revenue growth 3Y54.33%
Revenue growth 5Y31.38%
Sales Q2Q%-42.64%
Revenue Next Year-16.15%
Revenue Next 2Y-0.21%
Revenue Next 3Y6.53%
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