HUTCHMED (HCM) AI Stock Analysis

• Market Cap: $2.79B
• Dividend Yield: N/A
• Average Volume (3M): 45.73K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 0.25
• Revenue Growth: -2.48%
• EPS Growth: N/A
• Country: US
• Employees: 1,811
• Sector: Healthcare
• Sector Strength: 47
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 2.60
• Shares Outstanding: 174,422,290
• 10 Day Avg. Volume: 46,212
• 30 Day Avg. Volume: 45,727
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.49
• Enterprise Value/Revenue: 2.18
• Enterprise Value/Gross Profit: 19.81
• Enterprise Value/Ebitda: -43.72
• 1Y Price Target: $21.25
• Price Target Upside: 42.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 64 Neutral
• Price Target: $17.50 ▲(16.98% Upside)

HUTCHMED's overall stock score is primarily influenced by its mixed financial performance and undervaluation. While the company has a strong equity base, recent declines in revenue and cash flow pose risks. The technical indicators suggest bearish momentum, which could impact short-term performance. However, the low P/E ratio indicates potential for long-term value appreciation.

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 generates revenue primarily through the commercialization of its proprietary drug products, including sales from its marketed therapies. Additionally, the company earns income through collaborations and partnerships with other pharmaceutical companies, which may include upfront payments, milestone payments, and royalties on product sales. HUTCHMED has established strategic alliances that enhance its research capabilities and expand its market reach, contributing significantly to its financial performance. The company's revenue model is also bolstered by its ability to attract investments for its clinical trials and the potential for future product approvals in various international markets.

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

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
EBITDA	14.11M	25.53M	-401.11M	-207.96M	-182.89M
Net Income	37.73M	100.78M	-410.14M	-227.66M	-194.56M
Balance Sheet
Total Assets	1.27B	1.28B	1.03B	1.37B	724.12M
Cash, Cash Equivalents and Short-Term Investments	836.11M	886.34M	631.00M	1.01B	435.18M
Total Debt	89.82M	86.13M	23.30M	34.07M	35.71M
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: 14.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 14.96 is below the 20-day moving average (MA) of 16.30, below the 50-day MA of 16.39, and below the 200-day MA of 15.40, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 37.08 is Neutral, neither overbought nor oversold. The STOCH value of 11.53 is Positive, 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	76 Outperform	$2.49B	38.73	6.38%	―	5.55%	1145.24%
AMRX	66 Neutral	$2.95B	1,465.63	106.97%	―	9.81%	―
HCM	64 Neutral	$2.79B	5.83	47.53%	―	-2.48%	―
DVAX	54 Neutral	$1.22B	64.45	-9.28%	―	26.66%	-419.55%
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%
PRGO	51 Neutral	$3.26B	―	-1.32%	4.76%	-2.32%	35.46%
ALVO	50 Neutral	$2.45B	38.69	128.44%	―	98.37%	―