HUTCHMED (HCM) AI Stock Analysis

• Market Cap: $3.16B
• Dividend Yield: N/A
• Average Volume (3M): 51.85K
• Price to Earnings (P/E): 83.3
• Beta (1Y): 0.28
• Revenue Growth: -25.48%
• EPS Growth: -63.36%
• Country: US
• Employees: 1,811
• Sector: Healthcare
• Sector Strength: 38
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 2.60
• Shares Outstanding: 174,422,290
• 10 Day Avg. Volume: 35,433
• 30 Day Avg. Volume: 51,846
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 3.62
• Enterprise Value/Gross Profit: 32.93
• Enterprise Value/Ebitda: -72.67
• 1Y Price Target: $21.35
• Price Target Upside: 18.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 65 Neutral
• Price Target: $19.50 ▲(8.33% Upside)

HUTCHMED's stock score is influenced by its strong technical momentum and a solid equity base, which are offset by overvaluation concerns and recent financial performance challenges. The lack of earnings call and corporate events data means these factors were not considered in the score.

HUTCHMED Business Overview & Revenue Model

Company Description

HUTCHMED (HCM) is a biopharmaceutical company engaged in the discovery, development, and commercialization of targeted therapeutics and immunotherapies for the treatment of cancer and immunological diseases. Operating primarily in the healthcare and pharmaceutical sectors, the company focuses on developing innovative oncology and immunology drugs, with a strong pipeline of product candidates and several marketed products. HUTCHMED integrates its research and development capabilities with commercial operations to deliver innovative healthcare solutions.

How the Company Makes Money

HUTCHMED 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. Continued focus on operational efficiency and cash flow management will be crucial.

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: Positive
• Last Price: 18.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 18 is above the 20-day moving average (MA) of 17.38, above the 50-day MA of 16.14, and above the 200-day MA of 15.71, indicating a bullish trend. The MACD of 0.53 indicates Positive momentum. The RSI at 58.72 is Neutral, neither overbought nor oversold. The STOCH value of 23.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HCM.

HUTCHMED Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUPN	65 Neutral	$2.10B	37.09	6.38%	―	5.55%	1145.24%
HCM	65 Neutral	$3.16B	83.29	5.06%	―	-25.48%	-63.36%
AMRX	58 Neutral	$2.55B	1,195.59	106.97%	―	9.81%	―
DVAX	55 Neutral	$1.34B	64.45	-10.45%	―	24.76%	-783.38%
ALVO	52 Neutral	$2.60B	25.56	128.44%	―	539.47%	―
Sector *	51 Neutral	$7.39B	0.42	-62.86%	2.37%	15.61%	-1.93%
PRGO	51 Neutral	$3.66B	―	-1.32%	4.20%	-2.32%	35.46%