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HUTCHMED (HCM)
NASDAQ:HCM

HUTCHMED (HCM) AI Stock Analysis

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HUTCHMED

(NASDAQ:HCM)

Rating:58Neutral
Price Target:
$15.00
▲( 11.94% Upside)
HUTCHMED's overall score reflects challenges in financial performance and a high valuation, balanced by stable technical indicators. The company's solid equity position is overshadowed by recent declines in revenue and cash flow, while the high P/E ratio suggests potential overvaluation. Investors should be cautious and monitor operational improvements.

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

HUTCHMED Business Overview & Revenue Model

Company DescriptionHUTCHMED (HCM) is a biopharmaceutical company focused on the discovery, development, and commercialization of targeted therapies and immunotherapies for the treatment of cancer and immunological diseases. Operating primarily in the pharmaceuticals and biotechnology sectors, HUTCHMED is committed to advancing innovative medicines through its robust pipeline of drug candidates, leveraging its extensive research capabilities and strategic partnerships.
How the Company Makes MoneyHUTCHMED 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 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. Continued focus on operational efficiency and cash flow management will be crucial.
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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
630.20M838.00M426.41M356.13M227.98M
Gross Profit
281.32M453.55M115.31M97.89M39.46M
EBIT
-40.61M18.38M-409.77M-336.46M-188.95M
EBITDA
14.11M25.53M-401.11M-207.96M-182.89M
Net Income Common Stockholders
37.73M100.78M-410.14M-227.66M-194.56M
Balance SheetCash, Cash Equivalents and Short-Term Investments
836.11M886.34M631.00M1.01B435.18M
Total Assets
1.27B1.28B1.03B1.37B724.12M
Total Debt
89.82M86.13M23.30M34.07M35.71M
Net Debt
-64.14M-197.46M-289.98M-343.48M-199.92M
Total Liabilities
502.34M536.39M392.57M333.15M205.17M
Stockholders Equity
759.93M730.54M610.37M986.89M484.12M
Cash FlowFree Cash Flow
-17.44M186.65M-305.26M-220.98M-81.65M
Operating Cash Flow
497.00K219.26M-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
Negative
Last Price13.40
Price Trends
50DMA
14.41
Negative
100DMA
14.54
Negative
200DMA
16.24
Negative
Market Momentum
MACD
-0.37
Positive
RSI
42.88
Neutral
STOCH
33.00
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 13.4 is below the 20-day moving average (MA) of 14.08, below the 50-day MA of 14.41, and below the 200-day MA of 16.24, indicating a bearish trend. The MACD of -0.37 indicates Positive momentum. The RSI at 42.88 is Neutral, neither overbought nor oversold. The STOCH value of 33.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$1.80B29.076.32%11.82%
63
Neutral
$3.65B-3.64%4.21%-4.85%-4290.31%
62
Neutral
$3.10B30.49128.44%539.47%
HCHCM
58
Neutral
$2.37B62.015.06%-25.48%-63.36%
57
Neutral
$2.24B106.97%13.42%92.50%
53
Neutral
$5.14B3.03-44.09%2.83%16.75%-0.06%
48
Neutral
$1.18B64.45-10.45%24.76%-783.38%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HCM
HUTCHMED
13.40
-5.75
-30.03%
DVAX
Dynavax
9.80
-1.70
-14.78%
PRGO
Perrigo Company
26.56
0.29
1.10%
SUPN
Supernus Pharmaceuticals
32.10
5.03
18.58%
AMRX
Amneal Pharmaceuticals
7.16
0.37
5.45%
ALVO
Alvotech
10.28
-3.71
-26.52%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.