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HUTCHMED
(NASDAQ:HCM)
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Rating:66Neutral
Price Target:
$15.00
▲(22.35% 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
Very low leverage and a sizable equity base provide financial flexibility for clinical development, commercialization, and partnerships. This capital structure reduces balance-sheet strain and gives HUTCHMED more capacity to absorb operating volatility or fund strategic priorities over the next several quarters.
Negative Factors
Weak core operating profitability
Negative operating margins show that reported revenue is not yet translating into dependable core operating profit. Persistent margin weakness can constrain internally funded research and commercialization, while compressed gross profitability makes future earnings more sensitive to product mix and execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and a sizable equity base provide financial flexibility for clinical development, commercialization, and partnerships. This capital structure reduces balance-sheet strain and gives HUTCHMED more capacity to absorb operating volatility or fund strategic priorities over the next several quarters.
Read all positive factors
HUTCHMED (HCM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.49B
Dividend YieldN/A
Average Volume (3M)78.08K
Price to Earnings (P/E)152.3
Beta (1Y)0.51
Revenue Growth-8.81%
EPS Growth-96.21%
CountryUS
Employees1,796
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.10
Shares Outstanding174,467,030
10 Day Avg. Volume121,760
30 Day Avg. Volume78,078
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.85
Price to Sales (P/S)4.16
P/FCF Ratio-25.77
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$16.17Price Target Upside31.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.31
Revenue Forecast (FY)$625.69M
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
Income Statement
56
Neutral
Balance Sheet
84
Very Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 549.12M | 549.96M | 630.20M | 838.00M | 426.41M | 356.13M |
| Gross Profit | 1.11M | 212.72M | 282.57M | 453.55M | 115.31M | 327.34M |
| EBITDA | -20.52M | -41.38M | -31.36M | 26.58M | -360.02M | -154.53M |
| Net Income | 17.88M | 458.12M | 37.73M | 100.78M | -360.83M | -194.65M |
Balance Sheet | ||||||
| Total Assets | 1.74B | 1.75B | 1.27B | 1.28B | 1.03B | 1.37B |
| Cash, Cash Equivalents and Short-Term Investments | 1.38B | 1.37B | 836.11M | 886.34M | 631.00M | 1.01B |
| Total Debt | 94.51M | 97.89M | 89.82M | 86.13M | 27.01M | 38.98M |
| Total Liabilities | 461.46M | 501.84M | 502.34M | 536.39M | 392.57M | 333.15M |
| Stockholders Equity | 1.26B | 1.24B | 759.93M | 730.54M | 610.37M | 986.89M |
Cash Flow | ||||||
| Free Cash Flow | 9.95M | -88.81M | -17.44M | 186.65M | -305.26M | -220.98M |
| Operating Cash Flow | 20.46M | -64.66M | 497.00K | 219.26M | -268.60M | -204.22M |
| Investing Cash Flow | -47.00M | -29.41M | -96.06M | -291.14M | 296.59M | -306.32M |
| Financing Cash Flow | -1.49M | 7.84M | -30.67M | 48.66M | -82.76M | 650.03M |
HUTCHMED Technical Analysis
Positive
12.26
Price Trends
11.74
Positive
12.02
Positive
13.23
Positive
Market Momentum
0.39
Negative
73.73
Negative
70.81
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 12.26 is below the 20-day moving average (MA) of 12.52, above the 50-day MA of 11.74, and below the 200-day MA of 13.23, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 73.73 is Negative, neither overbought nor oversold. The STOCH value of 70.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $1.64B | 14.54 | 19.19% | ― | 30.90% | ― | |
66 Neutral | $2.49B | 152.35 | 1.43% | ― | -8.81% | -96.21% | |
60 Neutral | $5.57B | 34.27 | -326.75% | ― | 9.28% | 4917.17% | |
54 Neutral | $2.07B | -1.17 | -55.97% | 7.96% | -4.18% | -2138.82% | |
53 Neutral | $2.53B | -22.08 | -10.42% | ― | 24.85% | -264.42% | |
52 Neutral | $2.08B | -8.88 | 76.83% | ― | -12.17% | -365.51% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
HCM
HUTCHMED
13.88
-2.17
-13.52%
PRGO
Perrigo Company
14.58
-5.78
-28.39%
SUPN
Supernus Pharmaceuticals
42.43
-3.60
-7.82%
ANIP
ANI Pharmaceuticals
70.23
-28.23
-28.67%
AMRX
Amneal Pharmaceuticals
17.05
7.16
72.40%
ALVO
Alvotech
5.19
-2.92
-36.00%
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.