HUTCHMED (China) Limited (HCM) AI Stock Analysis

HUTCHMED (China) Limited discovers, develops, and commercializes targeted therapies and immunotherapies for cancer and immunological diseases. Operating through Oncology/Immunology and Other Ventures segments, its pipeline features Savolitinib for non-small cell lung cancer, renal cell carcinoma, colorectal cancer, and gastric cancer. It also advances Fruquintinib across various solid tumors and Surufatinib for neuroendocrine tumors. Additional candidates include HMPL-523, Tazemetostat, and HMPL-306. The company partners with AstraZeneca AB, Lilly (Shanghai) Management Company Limited, BeiGene, and Epizyme, Inc.

From FY2020 to FY2025, revenue achieved a 5-year CAGR of 19.2%, peaking at $838.0M in FY2023 before falling 24.8% to $630.2M in FY2024 and 12.7% to $550.0M in FY2025. Gross margin contracted to 38.7% in FY2025 alongside an operating margin of -10.0%. However, FY2025 net income reached $458.1M, representing an 83.3% net margin. For the trailing twelve months, revenue was $549.1M with an operating margin of 0.3% and EPS of $0.10. In the latest quarter ended June 30, 2026, quarterly revenue grew 0.2% year-over-year while quarterly earnings declined 96.5%.

As of June 30, 2026, HUTCHMED held $1.38B in cash and short-term investments against total debt of $94.5M, resulting in net cash of $1.28B. Shareholders' equity stood at $1.26B with a debt-to-equity ratio of 0.07 and a current ratio of 5.64. In FY2025, operating cash flow was -$64.7M and free cash flow was -$88.8M after capital expenditures of $24.1M.

At a market cap of $2.44B and enterprise value of $1.24B, HUTCHMED trades at a trailing P/E of 140.5x, well above the median of its US-listed Healthcare peers of 24.6x. Its forward P/E of 18.1x and price-to-sales ratio of 4.4x compare to peer medians of 17.3x and 4.1x, while its EV/EBITDA of 2.4x sits below the peer median of 12.0x. Over the past year, the stock fell 8.8% compared to a 16.8% gain for the S&P 500, and its 5-year return of -56.5% lagged the S&P 500's 83.0% gain.

Wall Street sentiment is predominantly favorable, with 9 Strong Buy, 1 Buy, and 2 Hold ratings. The mean price target is $20.59, implying 46.6% upside from the October 16, 2026 close of $14.05. Analysts project FY2026 revenue of $626.6M and EPS of $0.22, followed by FY2027 revenue of $698.8M and EPS of $0.26. The company beat EPS estimates in 1 of the last 4 quarters.

This page is an AI-written research summary of HUTCHMED (China) Limited (HCM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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