HUTCHMED (China) Ltd. (HCM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sino Biopharmaceutical Ltd.

China Medical System Holdings Ltd.

WuXi AppTec Co., Ltd.

Sinopharm Group Co., Ltd.

China Resources Pharmaceutical Group Ltd.

Hygeia Healthcare Holdings Co., Ltd.

Hansoh Pharmaceutical Group Co., Ltd.

Innovent Biologics, Inc.

Akeso, Inc.

HUTCHMED (China) Ltd.

BeiGene Ltd.

Why is HUTCHMED (China) Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 3.79%

Poor long term growth as Operating profit has grown by an annual rate 12.33% of over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -888.56

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -16.09%, its profits have risen by 1203.9%

Below par performance in long term as well as near term

Along with generating -16.09% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is HUTCHMED (China) Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

HUTCHMED (China) Ltd.

-15.1%

-1.66

54.20%

Hang Seng Hong Kong

27.36%

1.03

25.88%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

22.83%

EBIT Growth (5y)

12.33%

EBIT to Interest (avg)

-888.56

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.99

Sales to Capital Employed (avg)

0.69

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

3.79%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.14

EV to EBIT

-69.61

EV to EBITDA

-183.11

EV to Capital Employed

-32.38

EV to Sales

2.28

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

37.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

ROCE(HY)

Highest at 47.17%

CASH AND EQV(HY)

Highest at HKD 10,711.48 MM

PRE-TAX PROFIT(Q)

Highest at HKD 3,861.99 MM

NET PROFIT(Q)

Highest at HKD 3,545.31 MM

EPS(Q)

Highest at HKD 4.06

-3What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 35.49% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.4%

NET SALES(Q)

Lowest at HKD 2,163.85 MM

Here's what is working for HUTCHMED (China) Ltd.

Pre-Tax Profit

At HKD 3,861.99 MM has Grown at 10,485.11%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (HKD MM)

Net Profit

At HKD 3,545.31 MM has Grown at 1,657.36%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (HKD MM)

Pre-Tax Profit

Highest at HKD 3,861.99 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (HKD MM)

Net Profit

Highest at HKD 3,545.31 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

EPS

Highest at HKD 4.06

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (HKD)

Cash and Eqv

Highest at HKD 10,711.48 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for HUTCHMED (China) Ltd.

Net Sales

Lowest at HKD 2,163.85 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Debtors Turnover Ratio

Lowest at 3.4%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 35.49% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales