HUTCHMED (HCM)
NASDAQ:HCM
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HUTCHMED
(NASDAQ:HCM)
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Rating:53Neutral
Price Target:
$10.50
▼(-33.29% Downside)
Action:Reiterated
Date:03/07/26
The score is held back primarily by weakening operating performance and cash burn despite a strong, low-leverage balance sheet. Technicals also indicate a sustained downtrend. A low P/E provides some valuation support, but is tempered by concerns that recent earnings are less repeatable and not backed by cash flow.
Positive Factors
Conservative leverage
Low leverage (debt-to-equity ~0.08) provides durable financial flexibility to fund R&D, manage regulatory timelines, and support commercial rollouts without immediate refinancing. A conservative balance sheet reduces solvency risk and enables opportunistic partnering or investment over coming quarters.
Negative Factors
Material cash burn
Significant negative operating and free cash flow in 2025 indicates the business is consuming cash rather than generating it. Continued cash burn constrains the company's ability to self-fund clinical programs and commercialization, likely necessitating financing or partner payments and reducing strategic optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative leverage
Low leverage (debt-to-equity ~0.08) provides durable financial flexibility to fund R&D, manage regulatory timelines, and support commercial rollouts without immediate refinancing. A conservative balance sheet reduces solvency risk and enables opportunistic partnering or investment over coming quarters.
Read all positive factors
HUTCHMED (HCM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.77B
Dividend YieldN/A
Average Volume (3M)48.41K
Price to Earnings (P/E)3.8
Beta (1Y)0.38
Revenue Growth-12.78%
EPS Growth1119.53%
CountryUS
Employees1,811
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)2.77
Shares Outstanding174,467,030
10 Day Avg. Volume34,563
30 Day Avg. Volume48,412
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.85
Price to Sales (P/S)4.16
P/FCF Ratio-28.96
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue3.00
Enterprise Value/Gross Profit33.62
Enterprise Value/Ebitda-241.32
Forecast
1Y Price Target
$16.80Price Target Upside6.73% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.26
Revenue Forecast (FY)$625.00M
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
53
Neutral
Balance Sheet
74
Positive
Cash Flow
42
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 602.20M | 549.96M | 630.20M | 838.00M | 426.41M | 356.13M |
| Gross Profit | 53.76M | 212.72M | 281.32M | 453.55M | 115.31M | 97.89M |
| EBITDA | -7.49M | -41.38M | -31.36M | 26.58M | -401.11M | -207.96M |
| Net Income | 466.88M | 458.12M | 37.73M | 100.78M | -360.83M | -194.65M |
Balance Sheet | ||||||
| Total Assets | 1.78B | 1.75B | 1.27B | 1.28B | 1.03B | 1.37B |
| Cash, Cash Equivalents and Short-Term Investments | 1.36B | 1.37B | 836.11M | 886.34M | 631.00M | 1.01B |
| Total Debt | 100.73M | 97.89M | 89.82M | 86.13M | 27.01M | 38.98M |
| Total Liabilities | 534.02M | 501.84M | 502.34M | 536.39M | 392.57M | 333.15M |
| Stockholders Equity | 1.23B | 1.24B | 759.93M | 730.54M | 610.37M | 986.89M |
Cash Flow | ||||||
| Free Cash Flow | -49.66M | -79.01M | -17.44M | 186.65M | -305.26M | -220.98M |
| Operating Cash Flow | -32.56M | -64.83M | 497.00K | 219.26M | -268.60M | -204.22M |
| Investing Cash Flow | -73.03M | -29.49M | -96.06M | -291.14M | 296.59M | -306.32M |
| Financing Cash Flow | 11.22M | 7.86M | -30.67M | 48.66M | -82.76M | 650.03M |
HUTCHMED Technical Analysis
Negative
15.74
Price Trends
12.40
Negative
13.49
Negative
14.25
Negative
Market Momentum
-0.62
Negative
32.70
Neutral
29.13
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 15.74 is above the 20-day moving average (MA) of 10.84, above the 50-day MA of 12.40, and above the 200-day MA of 14.25, indicating a bearish trend. The MACD of -0.62 indicates Negative momentum. The RSI at 32.70 is Neutral, neither overbought nor oversold. The STOCH value of 29.13 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.89B | 20.13 | 17.32% | ― | 37.03% | ― | |
64 Neutral | $2.58B | -88.27 | -2.73% | ― | 16.29% | -145.12% | |
59 Neutral | $5.31B | 45.58 | -144.72% | ― | 7.62% | ― | |
53 Neutral | $1.77B | 3.81 | 37.04% | ― | -12.78% | 1119.53% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $1.31B | -0.74 | -50.65% | 8.48% | -3.62% | -932.84% | |
48 Neutral | $1.25B | -13.01 | 35.22% | ― | -4.47% | -178.26% |
* Healthcare Sector Average
HCM
HUTCHMED
10.27
-5.21
-33.66%
PRGO
Perrigo Company
9.76
-14.76
-60.20%
SUPN
Supernus Pharmaceuticals
45.14
13.90
44.49%
ANIP
ANI Pharmaceuticals
82.72
16.81
25.50%
AMRX
Amneal Pharmaceuticals
17.27
9.22
114.53%
ALVO
Alvotech
3.70
-5.43
-59.47%
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.