HUTCHMED (HCM) AI Stock Analysis

• Market Cap: $2.42B
• Dividend Yield: N/A
• Average Volume (3M): 112.70K
• Price to Earnings (P/E): 63.5
• Beta (1Y): 0.50
• Revenue Growth: -25.48%
• EPS Growth: -63.36%
• Country: US
• Employees: 1,811
• Sector: Healthcare
• Sector Strength: 70
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.22
• Shares Outstanding: 174,320,220
• 10 Day Avg. Volume: 168,115
• 30 Day Avg. Volume: 112,698
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.04
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $27.00
• Price Target Upside: 96.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

HUTCHMED's overall stock score reflects a combination of mixed financial performance, bearish technical indicators, and a high P/E ratio suggesting overvaluation. The company's strong equity position is a positive, yet declining revenue and cash flow remain significant risks. The absence of earnings call and corporate events data limits further insights.

HUTCHMED Business Overview & Revenue Model

Company Description

HUTCHMED (China) Limited discovers, develops, and commercializes targeted therapeutics and immunotherapies for cancer and immunological diseases in HongKong and internationally. It operates in Oncology/Immunology and Other Ventures segments. The company develops Savolitinib, an inhibitor for non-small cell lung cancer (NSCLC), papillary and renal cell carcinoma, colorectal cancer (CRC), and gastric cancer (GC); and Fruquintinib, an inhibitor for CRC, breast cancer, GC, endometrial cancer (EMC), NSCLC, hepatocellular carcinoma, and gastrointestinal and solid tumors. It also develops Surufatinib, an inhibitor for neuroendocrine tumors (NET), pancreatic NET, non-pancreatic NET, biliary tract cancer, sarcoma, neuroendocrine neoplasm, esophageal cancer, small cell lung cancer, GC, thyroid cancer, EMC, NSCLC, and solid tumors; HMPL-523, a spleen tyrosine kinase inhibitor for hematological cancers and certain chronic immune diseases; and HMPL-689 for isoform PI3Kd (phosphoinositide 3'-kinase delta). In addition, it develops Tazemetostat, an inhibitor of EZH2 for the treatment of certain epithelioid sarcoma and follicular lymphoma patients; HMPL-306, an inhibitor for hematological malignancies, gliomas, and solid tumors; HMPL-760, an Bruton's tyrosine kinase inhibitor; HMPL-453, an inhibitor for intrahepatic cholangiocarcinoma; HMPL-295 for solid tumors; HMPL-653 for metastatic solid tumors and tenosynovial giant cell tumors; and Epitinib (HMPL-813) and Theliatinib (HMPL-309) inhibitors. It has collaboration agreements with AstraZeneca AB (publ), Lilly (Shanghai) Management Company Limited, BeiGene, Inmagene Biopharmaceuticals Co. Ltd., Innovent Biologics Co., Inc., Genor Biopharma Co. Ltd., Shanghai Junshi Biosciences Co. Ltd., and Epizyme, Inc. The company was formerly known as Hutchison China MediTech Limited and changed its name to HUTCHMED (China) Limited in May 2021. The company was incorporated in 2000 and is headquartered in Central, Hong Kong.

How the Company Makes Money

HUTCHMED makes money primarily through the development and commercialization of its drug products. The company's revenue streams include sales of its marketed drugs, licensing agreements, and strategic collaborations. HUTCHMED enters into partnerships with other pharmaceutical companies to co-develop and co-commercialize certain products, which can lead to milestone payments and royalty income. Additionally, through its research and development efforts, HUTCHMED aims to bring new therapies to market, expanding its portfolio and potential revenue sources.

HUTCHMED Financial Statement Overview

Summary

HUTCHMED shows mixed financial health, with a strong equity base but notable challenges in sustaining revenue and cash flow growth. The recent decline in revenue and cash flow, alongside operational challenges, could pose financial risks, although the company has demonstrated improved profitability in the past.

Income Statement

HUTCHMED's revenue has seen fluctuations, with a recent decline from 2023 to 2024. The gross profit margin has been relatively stable, though the company experienced a significant drop in profitability, turning a positive net income in 2023 into a much lower figure in 2024. EBIT is zero in the latest year, indicating operational challenges. Despite these issues, the company has shown improved profitability in recent years compared to prior substantial losses.

Balance Sheet

The balance sheet reflects a strong equity position with a high equity ratio. However, the debt-to-equity ratio has increased slightly, indicating a rising leverage, though it remains at a manageable level. The company has maintained robust cash reserves, which provide a cushion against potential financial stress.

Cash Flow

Cash flow from operations has significantly decreased from 2023 to 2024, affecting the free cash flow, which turned negative. The free cash flow to net income ratio highlights an inconsistency between cash generation and reported earnings, suggesting potential cash flow management issues.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
630.20M	838.00M	426.41M	356.13M	227.98M
	Gross Profit
281.32M	453.55M	115.31M	97.89M	39.46M
	EBIT
0.00	18.38M	-409.77M	-336.46M	-188.95M
	EBITDA
14.11M	25.53M	-401.11M	-207.96M	-182.89M
	Net Income Common Stockholders
37.73M	100.78M	-410.14M	-227.66M	-194.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
836.11M	886.34M	631.00M	1.01B	435.18M
	Total Assets
1.27B	1.28B	1.03B	1.37B	724.12M
	Total Debt
89.82M	86.13M	23.30M	34.07M	35.71M
	Net Debt
-64.14M	-197.46M	-289.98M	-343.48M	-199.92M
	Total Liabilities
502.34M	536.39M	392.57M	333.15M	205.17M
	Stockholders Equity
759.93M	730.54M	610.37M	986.89M	484.12M
Cash Flow		Free Cash Flow
-17.44M	186.65M	-305.26M	-220.98M	-81.65M
	Operating Cash Flow
497.00K	219.26M	-268.60M	-204.22M	-62.07M
	Investing Cash Flow
-96.06M	-291.14M	296.59M	-306.32M	-125.44M
	Financing Cash Flow
-30.67M	48.66M	-82.76M	650.03M	296.43M

HUTCHMED Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HCM, the sentiment is Negative. The current price of 13.72 is below the 20-day moving average (MA) of 14.57, below the 50-day MA of 14.79, and below the 200-day MA of 16.82, indicating a bearish trend. The MACD of -0.62 indicates Positive momentum. The RSI at 45.65 is Neutral, neither overbought nor oversold. The STOCH value of 30.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HCM.

HUTCHMED Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUPN	64 Neutral	$1.77B	24.02	7.55%	―	8.94%	5171.26%
PRGO	62 Neutral	$3.36B	―	-3.53%	4.54%	-6.05%	-1677.05%
AMRX	62 Neutral	$2.19B	―	106.97%	―	16.73%	-22.44%
DVAX	57 Neutral	$1.40B	64.40	4.48%	―	19.36%	―
HCM	56 Neutral	$2.42B	63.49	5.06%	―	-25.48%	-63.36%
Sector *	48 Neutral	$6.36B	1.19	-46.31%	2.67%	19.41%	1.23%
ALVO	25 Underperform	$2.65B	―	128.44%	―	408.85%	59.22%