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

Fundamental Rating

Overall HCM gets a fundamental rating of 4 out of 10. We evaluated HCM against 198 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.

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1. Profitability

1.1 Basic Checks

HCM had positive earnings in the past year.

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

With a decent Return On Assets value of -3.33%, HCM is doing good in the industry, outperforming 78.79% of the companies in the same industry.

The Return On Equity of HCM (-5.67%) is better than 79.29% 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

Looking at the Gross Margin, with a value of 41.67%, HCM is in line with its industry, outperforming 59.60% of the companies in the same 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 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.

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

HCM has an Altman-Z score of 2.94. 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 2.94, HCM is doing good in the industry, outperforming 76.26% of the companies in the same industry.

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 Rank	Sector Rank
Debt/Equity	0.11
Debt/FCF	N/A
Altman-Z	2.94

ROIC/WACCN/A

WACC9.63%

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 (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's Quick ratio of 2.68 is in line compared to the rest of the industry. HCM outperforms 55.56% of 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

The Revenue has been growing by 25.20% on average over the past years. This is a very strong growth!

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 20.28% 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 Year17.35%

Revenue Next 2Y18.87%

Revenue Next 3Y23.86%

Revenue Next 5Y20.28%

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

A Price/Earnings ratio of 70.91 indicates a quite expensive valuation of 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 28.33, which is the current average of the S&P500 Index.

HCM is valuated cheaply with a Price/Forward Earnings ratio of 6.56.

Compared to the rest of the industry, the Price/Forward Earnings ratio of HCM indicates a rather cheap valuation: HCM is cheaper than 94.95% of the companies listed in the same industry.

The average S&P500 Price/Forward Earnings ratio is at 21.37. HCM is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	70.91
Fwd PE	6.56

4.2 Price Multiples

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

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 74.05% in the coming years. This may justify a more expensive valuation.

PEG (NY)0.09

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 (4/22/2025, 8:09:39 PM)

Premarket: 15.51 -0.09 (-0.58%)

15.6

+1.71 (+12.31%)

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-0.26%

Ins Owners0.78%

Ins Owner ChangeN/A

Market Cap2.67B

Analysts85.38

Price Target17.1 (9.62%)

Short Float %0.38%

Short Ratio4.43

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)-0.99%

PT rev (3m)1.08%

EPS NQ rev (1m)N/A

EPS NQ rev (3m)N/A

EPS NY rev (1m)265.13%

EPS NY rev (3m)733.94%

Revenue NQ rev (1m)N/A

Revenue NQ rev (3m)N/A

Revenue NY rev (1m)0%

Revenue NY rev (3m)-2.24%

Valuation

		Industry Rank	Sector Rank
PE	70.91
Fwd PE	6.56
P/S	4.37
P/FCF	N/A
P/OCF	N/A
P/B	3.6
P/tB	3.6
EV/EBITDA	N/A

EPS(TTM)0.22

EY1.41%

EPS(NY)2.38

Fwd EY15.24%

FCF(TTM)-0.38

FCFYN/A

OCF(TTM)-0.27

OCFYN/A

SpS3.57

BVpS4.33

TBVpS4.33

PEG (NY)0.09

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	2.94

F-ScoreN/A

WACC9.63%

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 Year17.35%

Revenue Next 2Y18.87%

Revenue Next 3Y23.86%

Revenue Next 5Y20.28%

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

More info and screens

5. Dividend

5.1 Amount

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