Stocks/HCM

HCM

HUTCHMED (China) Limited
Healthcare·Drug Manufacturers - Specialty & Generic
$11.45
$2.0B market cap
Claude Rating
3/10SELL
Revenue
$602.2M
Free Cash Flow
$-49.7M
Rev Growth
-9.2%
FCF Margin
-8.2%
P/FCF
--
EV/FCF
--
Fwd EV/EBITDA
--
Fair Value
$11.00
Upside
-3.9%

HUTCHMED (China) Limited discovers, develops, and commercializes targeted therapeutics and immunotherapies for cancer and immunological diseases in HongKong and internationally. It operates in Oncology/Immunology and Other Ventures segments. The company develops Savolitinib, an inhibitor for non-small cell lung cancer (NSCLC), papillary and renal cell carcinoma, colorectal cancer (CRC), and gastric cancer (GC); and Fruquintinib, an inhibitor for CRC, breast cancer, GC, endometrial cancer (EMC),

2-Year Price History

$11.99-32.5%
$12$14$16$18$20volJun 24Oct 24Jan 25May 25Sep 25Jan 26May 26

Quarterly Financials & Projections

Quarterly Waterfall ($ M)
PeriodRevEBITDAOpInNIOCFFCFCapExCashDebtSharesROICIntCovEV/EBITDA
Est2027-Q2158.01.6---3.2---15.8-4.01,201----------
Est2027-Q1148.0-3.0---7.4---22.2-3.71,217----------
Est2026-Q4160.00.0---4.8---12.8-4.01,239----------
Est2026-Q3145.0-4.4---8.7---20.3-3.61,252----------
Est2026-Q2140.0-7.0---11.2---22.4-3.91,272----------
Est2026-Q1130.0-10.4---15.6---28.6-3.91,294----------
Est2025-Q4145.0-2.9---7.3---17.4-3.61,323----------
Est2025-Q3135.0-6.8---10.8---24.3-4.11,340----------
Act2025-Q2138.81.3-1.8227.5-36.5-41.1-4.61,365126.3174.5-0.9%----
Act2025-Q1138.81.3-1.8227.5-36.5-41.1-4.61,366100.7174.5-0.9%----
Act2024-Q4162.3-5.1-8.16.020.216.3-3.9836.189.8174.6-11.6%----
Act2024-Q3162.3-5.1-8.16.020.216.3-3.9838.889.8174.6-11.5%----
Act2024-Q2152.8-10.6-13.812.9-19.9-25.0-5.1803.588.6174.5-20.9%----
Act2024-Q1152.8-10.6-13.812.9-19.9-25.0-5.1803.588.6174.5-20.6%----
Act2023-Q4152.6-44.4-46.6-33.9-3.6-7.7-4.1886.386.1170.5-72.5%--77.1x
Act2023-Q3152.6-44.4-46.6-33.9-3.6-7.7-4.1889.086.1170.5-71.8%----
Act2023-Q2266.457.755.884.3113.2101.0-12.2856.240.2173.481.0%----
Act2023-Q1266.457.755.884.3113.2101.0-12.2858.440.2173.480.0%----
Act2022-Q4112.2-103.3-105.5-99.0-89.4-99.8-10.5631.027.0169.0-476.0%----
Act2022-Q3112.2-103.3-105.5-99.0-89.4-99.8-10.5633.327.0169.0-470.9%----
Act2022-Q2202.1-96.2-196.8-162.9-89.9-105.6-15.8826.20.4169.9-300.5%----
Act2022-Q1101.0-96.2-98.4-81.4-44.9-52.8-7.9829.70.4169.9-147.9%----
Historical Valuation

Multiples vs the company's own history — cheap or rich relative to itself? Historical fiscal years, then TTM, then forward projections (E). Forward rows hold today's price against projected earnings, so the multiple compresses if the company grows into it.

YearPriceRev GrEBITDA %EBITDAEV/EBITDAEV/FCFP/EP/S
202214.78-75.7%-399n/mn/mn/m2.7×
202318.11+58.9%3.2%2777.1×11.0×28.3×3.4×
202414.41-24.8%-5.0%-31n/mn/m126.4×7.6×
TTM11.45-1.4%-1.2%-70.0×0.0×0.0×0.0×
2026E11.45-4.5%-0.0%-00.0×0.0×0.0×0.0×

EBITDA in reporting-currency $M. Historical multiples use year-end market cap (split-adjusted price history); TTM & forward years use today's.

AI Analysis

LLM Evaluations

Claude3/10SELLFV: $11.00

HUTCHMED is a loss-making Chinese oncology company whose recent reported profitability was entirely an artifact of a one-time $477M divestment gain. The core business is deteriorating: lead drugs ELUNATE and ORPATHYS face intensifying competition and NRDL pricing pressure in China, TAZVERIK has been withdrawn due to safety concerns, and sovleplenib's approval is delayed. While the $1.37B cash balance provides ample runway (5+ years at current burn), the company trades at $2.66B market cap — implying significant pipeline value that is increasingly difficult to justify given declining China revenues, an accelerating cash burn ($73M in H1 2025), and a regulatory/competitive environment that is getting worse, not better. The growing Takeda royalty stream from global fruquintinib is a genuine positive but insufficient to offset domestic headwinds. At ~4.4x P/S on declining revenue with negative EBITDA, the stock is priced for a turnaround that faces long odds.

Catalyst Potential sovleplenib approval in China in late 2026 could reignite growth narrative; additional Takeda milestones/royalties from fruquintinib global expansion; or a takeout by CK Hutchison/strategic acquirer given the large cash balance relative to market cap.
Risk Continued erosion of China oncology sales from competition and VBP/NRDL pricing combined with pipeline setbacks (like TAZVERIK) could accelerate cash burn and ultimately destroy the cash cushion without generating sustainable profitability.
Trend
DETERIORATING
Mgmt
4/10
Quarter
2/10
Exp. Move
-12.0%

Valuation & Metrics

Market Stats

Price$11.45
Market Cap$2.0B
Enterprise Value$759M
P/S Ratio3.3x
P/FCF--
EV/FCF--
FCF Margin (TTM)-8.2%
FCF Yield-2.5%
Dividend Yield (TTM)--
Annual Dilution0.0%
CurrencyUSD

TTM Financial Snapshot

Revenue$602.2M
Net Income$466.9M
Free Cash Flow$-49.7M

Revenue Growth (YoY)-9.2%
EBITDA Margin-1.2%
Net Margin77.5%
FCF Margin-8.2%
CapEx % of Revenue2.8%
SBC % of Revenue3.0%
ROIC-6.2%
WC Change % Rev9.4%
Interest Coverage--

DCF Fair Value Estimate

$2.21
-80.7% upside
Fair Enterprise Value$-852M
− Net Debt$-1.2B
= Fair Equity$386M
Revenue Growth11.1% → 4.0%
FCF Margin-8.2% → 8.0%
Discount Rate16.0%
Terminal EV/FCF14.0x

Forward Outlook & Risk

Short Interest

Short % of Float0.2%
Short Shares0.3M
Days to Cover8.8
Change (vs Prior)-16.2%
Short % Float History
0.20%+0.00pp
0.2%0.2%0.2%0.3%0.3%0.3%04-3007-1509-1511-1401-1504-30

Options

Call IV (ATM)--
Put IV (ATM)--
ATM Spread--
Call $OI (near money)$5K
Put $OI (near money)$5K
ATM ExpiryJuly 17, 2026 (56D)
ATM Strike$12.5
Major Expirations2
Near-money chain · July 17, 2026
StrikeCall Bid/AskCall OIPut Bid/AskPut OI
$2.50$7.00/$11.900--/$4.900
$5.00$4.50/$9.400--/$4.900
$7.50$2.05/$6.900--/$4.900
$10.00--/$4.900--/$1.500
$12.50--/$4.900--/$4.900
$15.00--/$4.900$0.80/$5.500
$17.50--/$4.900$3.10/$7.900
$20.00--/$4.900$5.60/$10.500
Snapshot: 2026-05-22

Forward Projections & Estimates

NTM Revenue Growth-8.7%
Forward FCF Margin-16.9%
Forward EBITDA Margin-4.9%
Forward P/FCF--
Forward EV/FCF--
Forward Int. Coverage--
Model Risk Score8/10
Bankruptcy Odds3%
Est. Borrow Rate9.5%
Terminal EV/FCF14.0x
LT Growth4.0%
LT FCF Margin8.0%

Employees

Headcount1,811
Revenue / Employee$332,522
Gross Profit / Employee$29,686
2022: 2,025 → 2023: 1,988 → 2024: 1,811 → 2025: 1,988 (-1% CAGR)

Institutional Ownership

Headline & net flow

BALANCED

In Q1 2026 so far (quarter still filing), institutions are roughly balanced — bought 0.1% of float, sold 0.7%.

Net flow · Q1 2026still filing
-0.5% of float (net)
Bought 0.1% · Sold 0.7%
52 filers reported (last quarter: 48)

Ownership composition

Active
2.7%(-1.6% YoY)
45 filers
hedge / family / endowment
Retail funds
Fidelity, Schwab, 401(k)
Passive
0.3%(-0.0% YoY)
5 filers
Vanguard, iShares, SPDR
Market makers
0.1%(-0.1% YoY)
2 filers
Citadel, Susquehanna
Insiders
2.3%
Form 4 — latest per insider
0%25%50%75%100%2022-062023-032023-122024-092025-062026-03
ActiveRetail fundsPassiveMarket makersRetail direct

Top holders

Fund$ valueCost basisΔ QoQΔ YoYα lifeFund AUM
SCHRODER INVESTMENT MANAGEMENT GROUP$22.1M$12.36−$12.0M−$20.4M-0.2%$121.82B
Allianz Asset Management GmbH$12.5M$11.65−$1.1M−$2.5M-0.2%$86.14B
STATE STREET CORPPassive$4.6M$12.32−$246K−$479K-0.2%$2.89T
AIA Group Ltd$4.4M$12.31−$362K−$362K+1.4%$6.88B
M&G Plc$3.8M$17.18−$53K−$48K-0.8%$18.83B
Amundi$3.5M$17.15+$133K+$1.1M-0.2%$366.88B
RENAISSANCE TECHNOLOGIES LLC$2.0M$13.83−$42K−$47K+1.2%$63.91B
BNP PARIBAS FINANCIAL MARKETS$1.6M$14.20+$1.1M+$1.3M-0.2%$149.31B
Crossmark Global Holdings, Inc.$1.3M$15.85+$486K+$906K+0.3%$6.77B
JANE STREET GROUP, LLCMM$1.1M$14.62−$471K−$2.2M-0.1%$92.10B
Tidal Investments LLC$1.0M$14.96+$1.0M+$1.0M-0.2%$32.04B
DIMENSIONAL FUND ADVISORS LPPassive$837K$14.07+$0+$837K-0.4%$480.92B
XY Capital Ltd$724K$14.77−$138K−$969K-0.8%$91.3M
UBS Group AG$670K$15.39−$239K−$2.6M-0.3%$562.11B
CITADEL ADVISORS LLC$456K$14.31+$71K+$380K-0.4%$138.22B
MILLENNIUM MANAGEMENT LLC$419K$13.04−$144K−$1.2M-0.5%$127.40B
Janney Montgomery Scott LLC$365K$14.96+$365K+$365K-0.2%$40.39B
GEODE CAPITAL MANAGEMENT, LLCPassive$327K$13.77+$0+$1K+2.3%$1.61T
Vanguard Personalized Indexing Management, LLCPassive$306K$14.52+$53K+$117K-0.3%$10.19B
Vident Advisory, LLC$265K$16.85+$108K−$30K-2.3%$11.74B
Cost basis is a volume-weighted estimate from accumulation periods within our 13F history; holders who built their position before our window started will show a stale basis. % above the cost basis is the unrealized gain at the current price.

Trading behavior

Smart-money alpha (lifetime, %/qtr)NEUTRAL
Holders
-0.08%
avg per quarter
Holders (ex-self)
-0.08%
excl. this stock
Buyers (this Q)
-0.24%
21 buyers · $0.00B in
Sellers (this Q)
-0.25%
20 sellers · $0.01B out
alpha coverage: 100% of $ has a lifetime-alpha record
Holder behavior on this stocksource: stock
On big dips (−10%+)
+14.5%
how holders react when this stock falls
On quiet Qs
+0.4%
−10% to +10% baseline
On rallies (+10%+)
-43.3%
how they react when this stock rises
Holders' portfolio flow this Q
+2.3%
inflows — adds are organic
Sellers' portfolio flow this Q
-1.2%
Sellers shed AUM broadly — partly forced.
▸ Compare to holder-profile behavior (across all their stocks)
Holder dip (any stock)
-6.6%
Holder mid (any stock)
-1.1%
Holder rally (any stock)
-4.9%

Top Holders Over Time

5-year share-count history (top 10 holders by peak, incl. exited) + price

09.1M18.2M27.3M36.3M$8.86$12$14$17$202021-062022-062023-062024-062025-062026-03
hover the chart for per-quarter detailprice (right axis)
Capital International InvestorsM&G INVESTMENT MANAGEMENT LTDCAPITAL INTERNATIONAL INC /CA/SANDS CAPITAL MANAGEMENT, LLCGENERAL ATLANTIC, L.P.WELLINGTON MANAGEMENT GROUP LLPZeal Asset Management LtdJPMORGAN CHASE & CO638Allianz Asset Management GmbH837KSCHRODER INVESTMENT MANAGEMENT GROUP1.5M

Analyst Coverage

Analyst Coverage
Analyst Ratings
8
1
1
Buy: 8Hold: 1Sell: 1Consensus: Buy
Consensus Estimates
QuarterRevenueEBITDANet IncEPSEPS Range# Analysts
2027 Q1308M-100M-91M$-0.52$-0.52 – $-0.521
2027 Q2318M-103M-96M$-0.55$-0.55 – $-0.551
2027 Q3319M-103M-68M$-0.39$-0.39 – $-0.391
2027 Q4319M-103M7M$0.04$0.04 – $0.041
2028 Q1330M-107M254M$1.46$1.46 – $1.461
2028 Q2291M-94M436M$2.50$2.50 – $2.501
2028 Q3309M-100M18M$0.10$0.10 – $0.101
2028 Q4338M-109M-3M$-0.01$-0.01 – $-0.011
2029 Q1462M-150M73M$0.42$0.42 – $0.421
2029 Q2462M-150M24M$0.14$0.14 – $0.141

Corporate

Order Flow (FINRA, ~3w lag)

12.7%retail-7.1pp
16.6%dark+2.8pp
week of 2026-04-13
10%20%30%40%50%60%24-1125-0225-0525-0825-1126-0226-04retail (non-ATS)dark (ATS)
Off-exchange volume from FINRA. Retail = non-ATS (wholesaler PFOF + broker internalization). Dark = ATS (dark-pool crossing networks, institutional). Lit-exchange = remainder.

Revenue Breakdown

Revenue Segments

By Product (2023-Q4)
Collaboration Research And Development$51.7MNEW
Other Collaboration Licensing Revenue$28.8MNEW
Commercialization Services$23.3MNEW
Other Collaboration Royalties Revenue$17.5MNEW
Research And Development Services$0.2MNEW

Filing Risk Analysis

Filing Risk Scores

HUTCHMED: One-Time Divestment Gain Masks Deteriorating Core Oncology Revenue

Overall Risk
4/10
Fraud
3/10
Dilution
3/10
Insolvency
2/10
Earnings Overstated
6/10
Hidden Liabilities
5/10
Legal
4/10
Audit Warnings
3/10
Hidden Upside
4/10
Contextually Acceptable
8/10

Counter-Thesis

Counter-Thesis & Recent News

📰 Recent News

In March 2026, HUTCHMED reported a massive earnings miss for the 2025 fiscal year, posting $0.01 EPS against analyst expectations of $2.50—a staggering $2.49 deficit. Revenue of $135.42M also fell short of the $290.50M consensus. Simultaneously, the company announced a voluntary withdrawal and product recall of TAZVERIK (tazemetostat) in China, Hong Kong, and Macau. This followed safety data from the SYMPHONY-1 trial indicating risks of secondary hematologic malignancies, leading to the discontinuation of all active tazemetostat clinical trials (March 2026).

🐻 Bear Case

The core bear case centers on a structural decline in profitability and deteriorating domestic market share. Earnings are forecast to decline at a rate of 51.5% per year over the next three years. Despite growth in global royalties through Takeda, the company’s internal China operations are struggling: ELUNATE sales in China fell from $115M in 2024 to $100.1M in 2025, a sign that competition is outstripping market growth. The company is increasingly reliant on lumpy, unpredictable milestone payments from partners like AstraZeneca and Takeda to mask underlying operational losses.

🚩 Red Flags

The $2.49 EPS miss suggests either a massive failure in internal guidance or a sudden evaporation of expected milestone income. The withdrawal of TAZVERIK due to safety risks raises questions about the long-term viability of other licensed-in assets. Furthermore, the company reported that the NDA review for sovleplenib in China was delayed due to NMPA stipulations for a 'lower impurity limit,' requiring further manufacturing validation and pushing potential revenue into late 2026.

⚔️ Competitive Threats

HUTCHMED faces an 'intensifying competitive landscape' in its primary market. Its lead drug, ORPATHYS (savolitinib), saw revenue drop to $18.6M from $24.5M year-over-year due to the launch of multiple competing MET-inhibitors in China. In the colorectal cancer (CRC) space, although global sales are rising via Takeda, the domestic China market for ELUNATE is being squeezed by aggressive National Reimbursement Drug List (NRDL) price cuts and local competitors offering similar non-chemotherapy alternatives.

💬 Customer Sentiment

Sentiment among oncologists in China is likely to be negatively impacted by the TAZVERIK recall, which may lead to increased caution regarding HUTCHMED’s broader pipeline. Additionally, the broader 'Anti-Corruption' campaign in Chinese healthcare and the 'Volume-Based Procurement' (VoBP) schemes continue to pressure pharmaceutical sales reps and hospital procurement, potentially leading to lower prescription volumes for premium-priced innovative drugs.