HUTCHMED DRC (HCM) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
HUTCHMED DRC stock (HCM) is currently trading at $14.15. HUTCHMED DRC PE ratio is 5.26. HUTCHMED DRC PS ratio (Price-to-Sales) is 4.59. Analyst consensus price target for HCM is $21.43. WallStSmart rates HCM as Sell.
- HCM PE ratio analysis and historical PE chart
- HCM PS ratio (Price-to-Sales) history and trend
- HCM intrinsic value — DCF, Graham Number, EPV models
- HCM stock price prediction 2025 2026 2027 2028 2029 2030
- HCM fair value vs current price
- HCM insider transactions and insider buying
- Is HCM undervalued or overvalued?
- HUTCHMED DRC financial analysis — revenue, earnings, cash flow
- HCM Piotroski F-Score and Altman Z-Score
- HCM analyst price target and Smart Rating
HUTCHMED DRC
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HCM Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · HUTCHMED DRC (HCM)
HCM appears undervalued based on the Graham Formula, trading 16% below its estimated fair value of $18.02.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
HUTCHMED DRC (HCM) · 9 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in return on equity, price/book, profit margin. Concerns around operating margin and revenue growth. Mixed signals suggest waiting for clearer direction before acting.
HUTCHMED DRC (HCM) Key Strengths (4)
Every $100 of shareholder equity generates $45 in profit
Keeps $83 of every $100 in revenue as net profit
Trading at 1.92x book value, attractively priced
Mid-cap company balancing growth potential with stability
Supporting Valuation Data
HUTCHMED DRC (HCM) Areas to Watch (5)
Losing money on operations
Revenue declining -16.50%, a shrinking business
Earnings declining -98.10%, profits shrinking
Very low institutional interest at 3.07%
Premium valuation at 4.6x annual revenue
HUTCHMED DRC (HCM) Detailed Analysis Report
Overall Assessment
This company scores 42/100 in our Smart Analysis, earning a D grade. Out of 9 metrics analyzed, 4 register as strengths (avg 8.8/10) while 5 fall into concern territory (avg 1.2/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Return on Equity, Profit Margin, Price/Book. Valuation metrics including Price/Book (1.92) suggest the stock is attractively priced. Profitability is solid with Return on Equity at 45.30%, Profit Margin at 83.30%.
The Bear Case
The primary concerns are Operating Margin, Revenue Growth, EPS Growth. Some valuation metrics including Price/Sales (4.59) suggest expensive pricing. Growth concerns include Revenue Growth at -16.50%, EPS Growth at -98.10%, which may limit upside. Profitability pressure is visible in Operating Margin at -13.20%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Operating Margin improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 45.30% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at -16.50% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. Operating Margin and Revenue Growth are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
HCM Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
HCM's Price-to-Sales ratio of 4.59x trades at a deep discount to its historical average of 13.49x (24th percentile). The current valuation is 86% below its historical high of 31.71x set in Jul 2021, and 70% above its historical low of 2.7x in Jan 2024.
WallStSmart Analysis Synopsis
Data-driven financial summary for HUTCHMED DRC (HCM) · HEALTHCARE › DRUG MANUFACTURERS - SPECIALTY & GENERIC
The Big Picture
HUTCHMED DRC faces headwinds with declining revenue, though profitability provides a cushion. Revenue reached 549M with 17% decline year-over-year. Profit margins are strong at 83.3%, reflecting pricing power and operational efficiency.
Key Findings
ROE of 45.3% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Debt-to-equity ratio of 0.08 indicates a conservative balance sheet with 1.4B in cash.
Revenue contracted 17% YoY. Worth determining whether this is cyclical or structural.
Free cash flow is -79M, meaning the company is burning cash. This may be acceptable for high-growth companies investing heavily.
What to Watch Next
Sector dynamics: monitor DRUG MANUFACTURERS - SPECIALTY & GENERIC industry trends, competitive moves, and regulatory changes that could impact HUTCHMED DRC.
Bottom Line
HUTCHMED DRC faces challenges with declining revenue. While profitability provides a buffer, the long-term trajectory needs to improve. Watch for management's strategic response and whether the company can stabilize or pivot to new growth drivers.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About HUTCHMED DRC(HCM)
NASDAQ
HEALTHCARE
DRUG MANUFACTURERS - SPECIALTY...
USA
HUTCHMED (China) Limited discovers, develops and markets targeted immunotherapies and therapies for cancer and immune diseases globally. The company is headquartered in Central, Hong Kong.