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Hutchmed (China) Limited (HCM)
:HCM

HUTCHMED (HCM) AI Stock Analysis

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HUTCHMED

(NASDAQ:HCM)

Rating:63Neutral
Price Target:
$17.00
▲(6.72%Upside)
The overall stock score reflects a company with solid technical momentum but significant valuation concerns and mixed financial performance. The high P/E ratio and lack of a dividend yield weigh negatively on the score. However, the technical indicators suggest some positive market sentiment, partially offsetting financial and valuation challenges.

HUTCHMED (HCM) vs. SPDR S&P 500 ETF (SPY)

HUTCHMED Business Overview & Revenue Model

Company DescriptionHUTCHMED (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 MoneyHUTCHMED makes money through a combination of revenue streams primarily derived from the sales of its pharmaceutical products, particularly in the oncology space. The company commercializes its products in key markets, including China and the United States, and also partners with other pharmaceutical companies to co-develop and co-market its drugs, which may include milestone payments and royalties. Additionally, HUTCHMED engages in licensing agreements that provide upfront payments and subsequent revenue from licensed products. Research and development collaborations with other pharmaceutical companies and institutions may also contribute to its revenue, as these partnerships can involve financial support, shared resources, and expertise that facilitate the advancement of its drug pipeline.

HUTCHMED Financial Statement Overview

Summary
HUTCHMED shows mixed financial health, with a solid equity base but challenges in sustaining revenue and cash flow growth. The recent decline in revenue and cash flow could pose risks, although the company has previously demonstrated an ability to improve profitability.
Income Statement
65
Positive
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
72
Positive
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
58
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue630.20M838.00M426.41M356.13M227.98M
Gross Profit281.32M453.55M115.31M97.89M39.46M
EBITDA14.11M25.53M-401.11M-207.96M-182.89M
Net Income37.73M100.78M-410.14M-227.66M-194.56M
Balance Sheet
Total Assets1.27B1.28B1.03B1.37B724.12M
Cash, Cash Equivalents and Short-Term Investments836.11M886.34M631.00M1.01B435.18M
Total Debt89.82M86.13M23.30M34.07M35.71M
Total Liabilities502.34M536.39M392.57M333.15M205.17M
Stockholders Equity759.93M730.54M610.37M986.89M484.12M
Cash Flow
Free Cash Flow-17.44M186.65M-305.26M-220.98M-81.65M
Operating Cash Flow497.00K219.26M-268.60M-204.22M-62.07M
Investing Cash Flow-96.06M-291.14M296.59M-306.32M-125.44M
Financing Cash Flow-30.67M48.66M-82.76M650.03M296.43M

HUTCHMED Technical Analysis

Technical Analysis Sentiment
Positive
Last Price15.93
Price Trends
50DMA
14.84
Positive
100DMA
14.86
Positive
200DMA
15.88
Negative
Market Momentum
MACD
0.19
Positive
RSI
55.22
Neutral
STOCH
71.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HCM, the sentiment is Positive. The current price of 15.93 is above the 20-day moving average (MA) of 15.84, above the 50-day MA of 14.84, and above the 200-day MA of 15.88, indicating a neutral trend. The MACD of 0.19 indicates Positive momentum. The RSI at 55.22 is Neutral, neither overbought nor oversold. The STOCH value of 71.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HCM.

HUTCHMED Risk Analysis

HUTCHMED disclosed 90 risk factors in its most recent earnings report. HUTCHMED reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

HUTCHMED Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$1.76B28.486.32%11.82%
63
Neutral
$3.68B-3.64%4.34%-4.85%-4290.31%
63
Neutral
$2.64B106.97%13.42%92.50%
HCHCM
63
Neutral
$2.72B73.725.06%-25.48%-63.36%
52
Neutral
$1.24B64.45-10.45%24.76%-783.38%
52
Neutral
$7.45B0.27-61.87%2.30%16.62%1.04%
49
Neutral
$2.72B26.75128.44%539.47%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HCM
HUTCHMED
15.93
-0.72
-4.32%
DVAX
Dynavax
10.59
>-0.01
-0.09%
PRGO
Perrigo Company
27.14
1.05
4.02%
SUPN
Supernus Pharmaceuticals
32.09
4.61
16.78%
AMRX
Amneal Pharmaceuticals
8.25
1.15
16.20%
ALVO
Alvotech
8.81
-3.28
-27.13%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 09, 2025