Hutchmed (HCM) Fundamental Analysis: Revenue, Earnings & Valuation

4.00 / 10

Netural

Fundamental analysis rates the company neutral (4/10). Strengths include solid current‑liabilities‑to‑total‑liabilities (62.9%) and a healthy interest coverage ratio (35.1%). However, operating revenue fell 13% YoY, cost of sales is high (61%), and asset‑to‑market value is weak, making the case defensive.

Analysis Checks(7/10)

Revenue-MV

Value-0.11

Score3/3

Weight47.53%

1M Return8.11%

Total operating revenue (YoY growth rate %)

Value-12.96

Score1/3

Weight-1.86%

1M Return-0.38%

Inventory turnover ratio

Value7.35

Score2/3

Weight-5.42%

1M Return-1.18%

Current liabilities / Total liabilities (%)

Value62.92

Score2/3

Weight1.84%

1M Return0.36%

PB-ROE

Value0.26

Score2/3

Weight44.33%

1M Return7.29%

Long-term debt to working capital ratio (%)

Value0.15

Score3/3

Weight4.16%

1M Return0.87%

Interest coverage ratio (EBIT / Interest expense) (%)

Value35.11

Score2/3

Weight-5.51%

1M Return-1.17%

Operating revenue (YoY growth rate %)

Value-12.96

Score1/3

Weight-1.46%

1M Return-0.30%

Cost of sales ratio (%)

Value61.32

Score2/3

Weight-5.21%

1M Return-1.13%

Asset-MV

Value-0.55

Score0/3

Weight21.60%

1M Return4.00%

Is HCM fundamentally strong?

HCM scores 4.00/10 on fundamentals and holds a Fair valuation at present. Backed by its 45.17% ROE, 83.45% net margin, 5.27 P/E ratio, 1.93 P/B ratio, and 1225.00% earnings growth, these metrics solidify its Netural investment rating.