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HUTCHMED (HCM)
NASDAQ:HCM
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HUTCHMED (HCM) AI Stock Analysis

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HCM

HUTCHMED

(NASDAQ:HCM)

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Neutral 66 (OpenAI - 5.2)
Rating:66Neutral
Price Target:
$12.50
▲(13.53% Upside)
Action:Reiterated
Date:08/04/26
The score is supported by an attractive low P/E valuation and a conservative, low-leverage balance sheet. Offsetting these positives are weak core operating profitability and volatile cash-flow history, while technicals show only modest near-term improvement within a broader longer-term downtrend.
Positive Factors
Conservative balance sheet
A very low debt-to-equity (~0.08) and sizable equity base give HUTCHMED durable financial flexibility to fund R&D and commercialization cycles, withstand clinical setbacks, and pursue partnerships without high interest burden, supporting multi-quarter strategic optionality.
Negative Factors
Weak core profitability
Persistently negative EBIT/EBITDA margins show core operations are not yet profitable, meaning long-term value depends on either margin improvement from scale, product mix shifts, or sustained milestone/licensing income, which may take multiple quarters to realize.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
A very low debt-to-equity (~0.08) and sizable equity base give HUTCHMED durable financial flexibility to fund R&D and commercialization cycles, withstand clinical setbacks, and pursue partnerships without high interest burden, supporting multi-quarter strategic optionality.
Read all positive factors

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

HUTCHMED Business Overview & Revenue Model

Company Description
HUTCHMED (China) Limited is a biopharmaceutical firm dedicated to the discovery, advancement, and marketing of innovative targeted and immune-based treatments for various cancers and immune-related disorders. Its operations are divided into two ma...
How the Company Makes Money
HUTCHMED generates revenue primarily through (1) sales of its own commercial-stage products in markets where it has commercialization rights, recorded as product (or commercial) revenue; and (2) collaboration and licensing arrangements with pharma...

HUTCHMED Financial Statement Overview

Summary
Financials are mixed. Revenue is growing modestly (+5.6% TTM) and the balance sheet is strong with low leverage (debt-to-equity ~0.08), but core profitability remains weak (negative EBIT/EBITDA margins). Net income appears unusually strong despite operating losses, suggesting non-operating drivers and higher earnings-quality risk. Cash flow has improved to positive in TTM, but free cash flow has been highly volatile across periods.
Income Statement
56
Neutral
Balance Sheet
84
Very Positive
Cash Flow
48
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue549.12M549.96M630.20M838.00M426.41M356.13M
Gross Profit1.11M212.72M282.57M453.55M115.31M97.89M
EBITDA-20.52M-41.38M-31.36M26.58M-401.11M-207.96M
Net Income17.88M458.12M37.73M100.78M-360.83M-194.65M
Balance Sheet
Total Assets1.74B1.75B1.27B1.28B1.03B1.37B
Cash, Cash Equivalents and Short-Term Investments1.38B1.37B836.11M886.34M631.00M1.01B
Total Debt94.51M97.89M89.82M86.13M27.01M38.98M
Total Liabilities461.46M501.84M502.34M536.39M392.57M333.15M
Stockholders Equity1.26B1.24B759.93M730.54M610.37M986.89M
Cash Flow
Free Cash Flow6.65M-88.81M-17.44M186.65M-305.26M-220.98M
Operating Cash Flow14.35M-64.66M497.00K219.26M-268.60M-204.22M
Investing Cash Flow-35.97M-29.41M-96.06M-291.14M296.59M-306.32M
Financing Cash Flow-2.91M7.84M-30.67M48.66M-82.76M650.03M

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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$1.80B19.2817.32%37.03%
66
Neutral
$1.97B4.1737.04%-8.81%-96.21%
64
Neutral
$5.85B37.58-326.75%9.28%4917.17%
56
Neutral
$2.59B-87.27-5538.45%16.29%-145.12%
54
Neutral
$1.40B-0.77-50.65%11.50%-3.62%-932.84%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
47
Neutral
$1.61B-14.4935.22%-4.47%-178.26%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HCM
HUTCHMED
11.55
-6.38
-35.56%
PRGO
Perrigo Company
13.27
-8.48
-38.99%
SUPN
Supernus Pharmaceuticals
46.91
4.47
10.53%
ANIP
ANI Pharmaceuticals
79.88
10.79
15.62%
AMRX
Amneal Pharmaceuticals
18.46
10.41
129.32%
ALVO
Alvotech
3.76
-4.70
-55.56%
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: Aug 04, 2026