HUTCHMED (China) Limited
HUTCHMED (China) Limited Fundamental Analysis
HUTCHMED (China) Limited (HMDCF) shows moderate financial fundamentals with a PE ratio of 5.35, profit margin of 1.05%, and ROE of 41.38%. The company generates $0.4B in annual revenue with weak year-over-year growth of -24.80%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HMDCF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentHMDCF demonstrates superior asset utilization.
Valuation Score
ExcellentHMDCF trades at attractive valuation levels.
Growth Score
WeakHMDCF faces weak or negative growth trends.
Financial Health Score
ExcellentHMDCF maintains a strong and stable balance sheet.
Profitability Score
WeakHMDCF struggles to sustain strong margins.
Key Financial Metrics
Is HMDCF Expensive or Cheap?
P/E Ratio
HMDCF trades at 5.35 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HMDCF's PEG of 0.06 indicates potential undervaluation.
Price to Book
The market values HUTCHMED (China) Limited at 1.99 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -981.34 times EBITDA. This is generally considered low.
How Well Does HMDCF Make Money?
Net Profit Margin
For every $100 in sales, HUTCHMED (China) Limited keeps $1.05 as profit after all expenses.
Operating Margin
Core operations generate -2.64 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $41.38 in profit for every $100 of shareholder equity.
ROA
HUTCHMED (China) Limited generates $26.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
HUTCHMED (China) Limited generates limited operating cash flow of $-51.82M, signaling weaker underlying cash strength.
Free Cash Flow
HUTCHMED (China) Limited generates weak or negative free cash flow of $-64.77M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.08 in free cash annually.
FCF Yield
HMDCF converts -2.72% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.35
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.51
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.96
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.41
vs 25 benchmark
ROA
Return on assets percentage
0.26
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How HMDCF Stacks Against Its Sector Peers
| Metric | HMDCF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.35 | 29.02 | Better (Cheaper) |
| ROE | 41.38% | 745.00% | Weak |
| Net Margin | 104.77% | -46183.00% (disorted) | Strong |
| Debt/Equity | 0.08 | 0.35 | Strong (Low Leverage) |
| Current Ratio | 4.96 | 4.52 | Strong Liquidity |
| ROA | 26.29% | -17797.00% (disorted) | Strong |
HMDCF outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews HUTCHMED (China) Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
138.07%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
120.23%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
100.48%
Industry Style: Defensive, Growth, Innovation
High Growth