HUTCHMED (HCM) AI Stock Analysis

• Market Cap: $2.73B
• Dividend Yield: N/A
• Average Volume (3M): 48.41K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 0.34
• Revenue Growth: -1.35%
• EPS Growth: N/A
• Country: US
• Employees: 1,811
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 2.60
• Shares Outstanding: 174,429,800
• 10 Day Avg. Volume: 34,563
• 30 Day Avg. Volume: 48,412
• PEG Ratio: -1.03
• Price to Book (P/B): 3.24
• Price to Sales (P/S): 3.91
• P/FCF Ratio: -141.38
• Enterprise Value/Market Cap: 0.50
• Enterprise Value/Revenue: 2.28
• Enterprise Value/Gross Profit: 25.51
• Enterprise Value/Ebitda: -183.08
• 1Y Price Target: $19.38
• Price Target Upside: 36.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $15.00 ▲(5.78% Upside)

HUTCHMED's overall stock score reflects a combination of mixed financial performance, bearish technical indicators, and an attractive valuation. The financial health is currently reliant on non-recurring gains, posing a risk to future stability. Technical analysis indicates bearish momentum, while the low P/E ratio suggests potential undervaluation. However, caution is advised due to underlying financial challenges.

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's financial performance is mixed. The income statement shows declining revenue and profitability challenges, despite a high net profit margin driven by a one-time gain. The balance sheet is strong with low leverage and high equity, but cash flow issues are evident with negative operating cash flow. The company's financial health is currently reliant on non-recurring gains, posing a risk to future stability.

Income Statement

HUTCHMED's income statement shows a mixed performance. The TTM data indicates a significant net profit margin of 77.53%, primarily due to a one-time gain, which is not sustainable. Revenue has declined by 2.27% in the TTM period, following a previous annual decline. Gross profit margin has significantly decreased from 54.12% in 2023 to 8.93% in the TTM, indicating pressure on profitability. The EBIT and EBITDA margins are negative, reflecting operational challenges.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.076 in the TTM, indicating low leverage. The return on equity is high at 46.95% in the TTM, driven by the net income spike. However, this is not sustainable due to the one-time gain. The equity ratio remains healthy, suggesting financial stability.

Cash Flow

Cash flow analysis reveals challenges, with negative operating cash flow in the TTM and a free cash flow growth rate of 48.02%, which is misleading due to previous negative values. The operating cash flow to net income ratio is negative, indicating cash flow issues. The free cash flow to net income ratio is positive at 1.52, but this is skewed by the net income anomaly.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	602.20M	630.20M	838.00M	426.41M	356.13M	227.98M
Gross Profit	53.76M	281.32M	453.55M	115.31M	97.89M	39.46M
EBITDA	-7.49M	14.11M	67.27M	-401.11M	-207.96M	-182.89M
Net Income	466.88M	37.73M	100.78M	-360.83M	-194.65M	-125.73M
Balance Sheet
Total Assets	1.78B	1.27B	1.28B	1.03B	1.37B	724.12M
Cash, Cash Equivalents and Short-Term Investments	1.36B	836.11M	886.34M	631.00M	1.01B	435.18M
Total Debt	93.44M	89.82M	86.13M	27.01M	38.98M	38.90M
Total Liabilities	534.02M	502.34M	536.39M	392.57M	333.15M	205.17M
Stockholders Equity	1.23B	759.93M	730.54M	610.37M	986.89M	484.12M
Cash Flow
Free Cash Flow	-49.66M	-17.44M	186.65M	-305.26M	-220.98M	-81.65M
Operating Cash Flow	-32.56M	497.00K	219.26M	-268.60M	-204.22M	-62.07M
Investing Cash Flow	-73.03M	-96.06M	-291.14M	296.59M	-306.32M	-125.44M
Financing Cash Flow	11.22M	-30.67M	48.66M	-82.76M	650.03M	296.43M

HUTCHMED Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.18
• 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 14.18 is below the 20-day moving average (MA) of 14.94, below the 50-day MA of 15.60, and below the 200-day MA of 15.42, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 33.40 is Neutral, neither overbought nor oversold. The STOCH value of 11.81 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
ANIP	64 Neutral	$1.80B	49.26	7.83%	―	48.87%	―
AMRX	63 Neutral	$3.56B	788.19	―	―	9.50%	―
SUPN	55 Neutral	$2.62B	―	-1.86%	―	4.54%	-130.59%
HCM	52 Neutral	$2.73B	5.76	47.54%	―	-1.35%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PRGO	50 Neutral	$2.78B	―	-0.65%	5.55%	-2.55%	66.00%
ALVO	44 Neutral	$1.66B	23.84	―	―	55.38%	―