Share count
873Mpeak FY2025
← All companies ← HBM Manual HDB → ← GYRE Pharmaceuticals HRMY →
HCM, HUTCHMED (China) Limited
We are a global commercial-stage biopharmaceutical company focused on the discovery, development and commercialization of targeted therapies and immunotherapies for the treatment of patients with cancer and immunological diseases.
Our operational achievements and capabilities to date include: Broad pipeline of differentiated targeted therapies and immunotherapies built for the global market .
Commercially launching products while continuing to discover new assets.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
$549M
−13.0% YoY · 19% 5-yr CAGR
Vital signs · TTM, with 5-yr average
Revenue $549M 5-yr avg $560M
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- What it is
- Revenue is Oncology/Immunology (52%) and Other Ventures (48%).
- Situation
- Distress / turnaround. Thin interest coverage, or operating cash burned against real debt, across the record. The balance sheet carries this situation; the debt schedule sets the clock.
- What moves the needle
- Operating margin has run around −43% through the cycle on a 31% gross margin, the operating line deeply negative — so the lever is the path to a margin at all: revenue growth against the cost curve and the cash runway, not the level of a margin that isn't there yet. Read this kind of business on the pipeline against the patent cliff, and pricing. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Return on capital has rarely cleared the cost of capital (median −23%, above 15% in 0 of 10 years). Owner earnings, the cash-based check, have been thin too. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.
Every line is arithmetic on the company's filings, shown in full in the sections below.
Where the money comes from
read the 20-F →Revenue spreads across 2 segments, the largest Oncology/Immunology at 52%.
Revenue by reportable segment, FY2025
- Oncology/Immunology52%$286M
- Other Ventures48%$263M
By geographyChina74%US and others26%
From the segment footnote of the company's own 20-F. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.
The record
Ten years of arithmetic, read across the cycle.
The record, 2016–2025
realized figures from each filing · older years to the left| 2016’16 | 2017’17 | 2018’18 | 2019’19 | 2020’20 | 2021’21 | 2022’22 | 2023’23 | 2024’24 | 2025’25 | TTMTTMDec 2025 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | |||||||||||
| $216M | $241M | $214M | $205M | $228M | $356M | $426M | $838M | $630M | $549M | $549M | RevenueRevenue |
| 31% | 30% | — | — | — | — | 27% | 54% | 45% | 39% | 39% | Gross marginGross mgn |
| ($47M) | ($53M) | ($93M) | ($146M) | ($197M) | ($328M) | ($408M) | $18M | ($44M) | ($39M) | ($39M) | Operating incomeOp. inc. |
| −21.6% | −22.1% | −43.3% | −71.4% | −86.3% | −92.2% | −95.6% | 2.2% | −6.9% | −7.1% | −7.1% | Operating marginOp. mgn |
| $15M | ($23M) | ($71M) | ($104M) | ($116M) | ($167M) | ($360M) | $101M | $38M | $458M | $458M | Net incomeNet inc. |
| 23% | — | — | — | — | — | — | 4% | 16% | 12% | 12% | Effective tax rateTax rate |
| Cash flow & returns | |||||||||||
| ($10M) | ($9M) | ($33M) | ($81M) | ($62M) | ($204M) | ($269M) | $219M | $497K | ($65M) | ($65M) | Operating cash flowOp. cash |
| $2M | $3M | $4M | $5M | $6M | $7M | $9M | $8M | $12M | $13M | $13M | DepreciationDeprec. |
| ($26M) | $11M | $35M | $18M | $47M | ($44M) | $83M | $110M | ($50M) | ($536M) | ($536M) | Working capital & otherWC & other |
| $4M | $5M | $6M | $9M | $8M | $16M | $37M | $33M | $18M | $14M | $14M | CapexCapex |
| 2.0% | 2.1% | 3.0% | 4.2% | 3.5% | 4.6% | 8.6% | 3.9% | 2.8% | 2.6% | 2.6% | Capex / revenueCapex/rev |
| ($12M) | ($12M) | ($36M) | ($86M) | ($68M) | ($211M) | ($277M) | $211M | ($12M) | ($79M) | ($79M) | Owner earningsOwner earn. |
| −5.5% | −4.8% | −17.0% | −41.9% | −29.9% | −59.4% | −65.0% | 25.2% | −1.9% | −14.4% | −14.4% | Owner earnings marginOE mgn |
| ($14M) | ($14M) | ($39M) | ($89M) | ($70M) | ($221M) | ($305M) | $187M | ($17M) | ($79M) | ($79M) | Free cash flowFCF |
| −6.4% | −5.8% | −18.3% | −43.7% | −30.7% | −62.0% | −71.6% | 22.3% | −2.8% | −14.4% | −14.4% | Free cash flow marginFCF mgn |
| $604K | $1M | $5M | $346K | $13M | $27M | $48M | $9M | $36M | — | — | BuybacksBuybacks |
| -24% | -10% | -22% | -60% | -56% | -39% | -102% | 3% | -5% | -3% | -3% | ROICROIC |
| 8% | -5% | -18% | -36% | -24% | -17% | -59% | 14% | 5% | 37% | 37% | Return on equityROE |
| 8% | −5% | −18% | −36% | −24% | −17% | −59% | 14% | 5% | 37% | 37% | Retained to equityRetained/eq |
| Balance sheet | |||||||||||
| $104M | $358M | $301M | $217M | $435M | $1.0B | $631M | $886M | $836M | $1.4B | $1.4B | Cash & investmentsCash+inv |
| $41M | $38M | $40M | $41M | $48M | $84M | $98M | $117M | $156M | $127M | $127M | ReceivablesReceiv. |
| $13M | $12M | $12M | $16M | $20M | $36M | $57M | $50M | $50M | $41M | $41M | InventoryInvent. |
| $36M | $24M | $26M | $24M | $32M | $41M | $71M | $36M | $43M | $46M | $46M | Accounts payablePayables |
| $18M | $26M | $27M | $34M | $36M | $78M | $84M | $131M | $163M | $122M | $122M | Operating working capitalOper. WC |
| $167M | $432M | $371M | $317M | $531M | $1.2B | $840M | $1.1B | $1.1B | $1.6B | $1.6B | Current assetsCur. assets |
| $95M | $105M | $85M | $113M | $158M | $312M | $354M | $403M | $377M | $316M | $316M | Current liabilitiesCur. liab. |
| 1.8× | 4.1× | 4.3× | 2.8× | 3.4× | 3.9× | 2.4× | 2.7× | 2.8× | 5.0× | 5.0× | Current ratioCurr. ratio |
| $3M | $3M | $3M | $3M | $3M | $3M | $3M | $3M | $3M | $3M | $3M | GoodwillGoodwill |
| $342M | $598M | $532M | $465M | $724M | $1.4B | $1.0B | $1.3B | $1.3B | $1.8B | $1.8B | Total assetsAssets |
| $47M | $50M | $27M | $27M | $27M | $54M | $18M | $79M | $83M | $93M | $93M | Total debtDebt |
| ($57M) | ($308M) | ($274M) | ($190M) | ($408M) | ($958M) | ($613M) | ($807M) | ($753M) | ($1.3B) | ($1.3B) | Net debt / (cash)Net debt |
| -28.6× | -36.7× | -91.8× | -142.1× | -249.9× | -554.6× | -625.3× | 24.2× | -15.2× | -13.7× | -19.5× | Interest coverageInt. cov. |
| $184M | $462M | $389M | $288M | $484M | $987M | $610M | $731M | $760M | $1.2B | $1.2B | Shareholders’ equityEquity |
| Per share | |||||||||||
| 600M | 617M | 664M | 666M | 698M | 793M | 847M | 869M | 873M | 873M | 873M | Shares out (diluted)Shares |
| $0.36 | $0.39 | $0.32 | $0.31 | $0.33 | $0.45 | $0.50 | $0.96 | $0.72 | $0.63 | $0.63 | Revenue / shareRev/sh |
| $0.02 | $-0.04 | $-0.11 | $-0.16 | $-0.17 | $-0.21 | $-0.43 | $0.12 | $0.04 | $0.52 | $0.52 | EPS (diluted)EPS |
| $-0.02 | $-0.02 | $-0.05 | $-0.13 | $-0.10 | $-0.27 | $-0.33 | $0.24 | $-0.01 | $-0.09 | $-0.09 | Owner earnings / shareOE/sh |
| $-0.02 | $-0.02 | $-0.06 | $-0.13 | $-0.10 | $-0.28 | $-0.36 | $0.21 | $-0.02 | $-0.09 | $-0.09 | Free cash flow / shareFCF/sh |
| $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.02 | $0.04 | $0.04 | $0.02 | $0.02 | $0.02 | Cap. spending / shareCapex/sh |
| $0.31 | $0.75 | $0.59 | $0.43 | $0.69 | $1.25 | $0.72 | $0.84 | $0.87 | $1.42 | $1.42 | Book value / shareBVPS |
Share counts before 2019 are restated ×10 for a stock split, so per-share figures sit on one basis.
Per-share growththe realized rate an owner's share compounded
| 9-yr | 5-yr | |
|---|---|---|
| Revenue / share | +6.4%/yr | +14.0%/yr |
| EPS | +40.7%/yr | — |
| Capital spending / share | +9.4%/yr | +7.3%/yr |
| Book value / share | +18.5%/yr | +15.4%/yr |
The record, charted
FY2016–2025Each measure over its full record; the current point and the worst year marked. Share counts on the current split basis.
ROIC
−3%low FY2022
Gross margin
39%low FY2022
Owner earnings vs. net income
Owner earningsNet incomeThe accountant's number, and the cash an owner can take; the gap is the tell.
($79M)owner earningsvs.$458Mnet incomelow FY2022
Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.
In fiscal 2025 the business reported $458M of profit but ($79M) of owner earnings: $537M less than the profit line, taken out by capital spending and the timing of cash.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Reported net income | $458M | $38M | $101M | ($360M) | ($167M) |
| Depreciation & amortizationnon-cash charge added back | +$13M | +$12M | +$8M | +$9M | +$7M |
| Working capital & othertiming of cash in and out, other non-cash items | −$536M | −$50M | +$110M | +$83M | −$44M |
| Cash from operations | ($65M) | $497K | $219M | ($269M) | ($204M) |
| Maintenance capital expenditurethe spending needed just to hold position and volume | −$14M | −$12M | −$8M | −$9M | −$7M |
| Owner earnings | ($79M) | ($12M) | $211M | ($277M) | ($211M) |
| Growth capital expenditurediscretionary; spent to get bigger, not to stand still | — | −$6M | −$24M | −$28M | −$9M |
| Free cash flow | ($79M) | ($17M) | $187M | ($305M) | ($221M) |
| Owner-earnings marginowner earnings ÷ revenue | -14% | -2% | 25% | -65% | -59% |
Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position .
Much of fiscal 2025's profit didn't arrive as operating cash; it sits in “working capital & other” above. That can be a real inventory or timing swing, or profit that doesn't run through operating cash at all: a heavy tax year, equity-method earnings, or investment income booked through investing. For a year like this, owner earnings understates the cash earned; the full cash-flow statement carries the rest.
Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 20-F · source on SEC EDGAR →
Will it survive?
- Can it pay its interest? -19.5×Does not cover its interestOperating income ($39M) ÷ interest expense $2M
What this means
A full year of operating profit didn't cover the interest bill. This is the zombie zone: the business depends on refinancing, asset sales, or forbearance to service its debt.
- Net cashCash $71M + ST investments $1.3B − debt $93M
What this means
Cash and short-term investments exceed every dollar of debt by $1.3B, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
- Long (60+ days)DSO 84 + DIO 45 − DPO 49 days
What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.
Is it a good business?
- Below average through the cycle10-yr median, range -102%–3%; -3% latest = NOPAT ($34M) ÷ invested capital $1.3BIndustry peers: median -22%
What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran -3% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
- Consumes cash through the cycle10-yr median margin, range -65%–25%; latest ($79M) = operating cash ($65M) − maintenance capex $14MIndustry peers: median -20%
What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's -14% of revenue this year, a -17% median across 10 years.
- Are earnings backed by cash? -0.14×Thinly cash-backedCash from ops ($65M) ÷ net income $458M
What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.
How is the cash used?
- Not enough data
What this means
The filing data didn't include the inputs for this check.
- Investing or harvesting? 1.06×MaintainingCapex $14M ÷ depreciation $13M
What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.
Graham’s defensive tests · 2 of 5 met
Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.
- Adequate size MissRevenue ≥ $2B · $549M
What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
- Strong liquidity PassCurrent ratio ≥ 2× · 4.96×
What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
- Conservative debt PassDebt ≤ working capital · $93M vs $1.3B WC
What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
- Earnings stability MissA profit every year (10-yr record) · 6 loss years
What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
- Dividend record MissUninterrupted dividends · none paid
What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
- Earnings growth —Earnings +33% over the record · —
What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
- Moderate price —P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price
What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $0.23/share (latest year $0.52), the averaged base the calculator's gate runs on, and book value is $1.42/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.
Durability & moat, 2016–2025
Whether the record’s returns held, and what the capital reinvested earned.
- Profitable years 4 of 10
What this means
Lost money in 6 year(s), look at what happened there before trusting the average.
- Return on capital ≥ 15% 0 of 10 yrs
What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
- Operating margin −29% → −4% (3-yr avg ends)
In the filing’s words The margin widened even though the filing names price competition — the gain came from volume or cost, not pricing power. Read where.
What this means
Through the cycle the operating margin widened — about −29% early to −4% lately, median −43% — pricing power intact or improving.
- Reinvestment, incremental ROIC 6%
What this means
Reinvested capital came back at only a modest incremental return — near the cost of capital, where extra growth adds little per dollar. The record shows whether it is a soft stretch or a thinning moat.
- Worst year 2022 · −95.6% op. margin
What this means
Operations went underwater in 2022, understand why before trusting the good years.
Does AI threaten the moat?
Low contestabilityThe moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.
AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Current Position
as of fiscal year-end, Dec 31, 2025Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
Current assets$1.6B
- Cash & short-term investments$1.4B
- Receivables$127M
- Inventory$41M
- Other current assets$32M
Current liabilities$316M
- Debt due within a year$25M
- Accounts payable$46M
- Other current liabilities$245M
Current ratio4.96×all current assets ÷ what's due · Graham looked for 2×
Quick ratio4.83×stricter: inventory excluded
Cash ratio4.33×strictest: cash alone against what's due
Working capital$1.3Bthe cushion left after near-term bills
Debt due this year vs. cash$25M due · $1.4B cash
covered by cash on hand, no refinancing forced · both figures from the Dec 31, 2025 balance sheet
Cash runway17.4 yrsthe business is consuming cash; this is how long the cash on hand lasts at that rate
Deeper floors
Tangible book value$1.2Bequity stripped of goodwill & intangibles
Net current asset value$1.1BGraham's net-net: current assets less all liabilities
Debt incl. operating leases$96M$3M of it operating leases
Deferred revenue$31Mcustomer cash collected before delivery; operating float
From the company's latest filing.
Inverting the record
Invert: instead of why HUTCHMED (China) Limited is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.
None of the 3 tests turned up a mark; each came back clean. A clean panel says only that these particular ways of being wrong are not written into the record.
Each test came back clean
- Is it less profitable than it was?
- Did debt outgrow the business?
- Did receivables and inventory outpace sales?
Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.
What an owner would ask, FY2025
read the 10-K →- How much of the revenue rides on one buyer?≈$154M · 28% of revenue on the largest customers (TTM)
“As of December 31, 2025, our Distribution Business had around 920 customers of which approximately 10% were distributors, and the revenue generated from these distributors accounted for approximately 28% of the revenue of our Distribution Business for the year ended December 31, 2025.”verify →
The questions the record and the charts do not answer on their own; each carries the figure and the place to look.
Peers, Pharmaceuticals
The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | Gross margin | Op. margin | ROIC | Owner earn. margin |
|---|---|---|---|---|---|
| OPKOPKO Health Inc. | $607M | 34% | -18.8% | -8% | -13% |
| INSMInsmed Incorporated | $606M | 77% | -202.3% | -138% | -182% |
| CPRXCatalyst Pharmaceuticals Inc. | $589M | 86% | 35.9% | 48% | 37% |
| HCMHUTCHMED (China) Limited | $549M | 35% | -32.7% | -23% | -16% |
| MIRMMirum Pharmaceuticals Inc. | $521M | — | -58.6% | -61% | -38% |
| BBIOBridgeBio Pharma Inc. | $502M | 96% | -659.6% | — | -627% |
| TVTXTravere Therapeutics | $491M | 97% | -83.6% | -35% | -20% |
| NATRNature's Sunshine Products Inc. | $480M | 73% | 4.3% | 12% | 4% |
| Group median | — | 77% | -45.6% | -23% | -18% |
The price
What a price has to assume.
What the price implies
reverse-DCFEnter the US price, in dollars: the NYSE/Nasdaq quote you hold. Per the filing's own cover, “American depositary shares, each representing five ordinary”; HUTCHMED (China) Limited reports in USD, so every figure in this tool is stated per ADS so your dollar quote reconciles exactly. The record tables elsewhere on this page remain as filed.
Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what HUTCHMED (China) Limited has delivered.
HUTCHMED (China) Limited’s latest year shows negative owner earnings, below the record’s own through-cycle owner earnings. So the tool opens on the through-cycle base, the cash it would earn at rest; clear the toggle below to read the latest year exactly as reported.
$
Base
—
The assumptions
9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.
Enter a price above to run it.
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Implied by the price—
Owner-earnings growth, delivered—
Owner-earnings growth, delivered—
Owner-earnings yield—
What a growth belief costs, in multiples
The growth each return requires, at your price
P/E (3-yr earnings ’23–’25)—
P/B—
Graham’s price gate—
Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.
Against a high-grade bond: Graham’s yardstick bond yield%
Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.
Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.
Owner-earnings yield—
High-grade bond yield—
Margin over the bond—
Owner earnings ($79M) on 174M shares outstanding, per the 20-F cover, as of 2025-12-31; net cash $1.3B. The base opens on the through-cycle figure (the latest year sits off the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.
Cite: Owner Scorecard, "HUTCHMED (China) Limited (HCM), the owner's record," https://ownerscorecard.com/c/HCM, data as of 2026-07-09.
Manual order: ← HBM its page in the Manual HDB →
Industry order: ← GYRE the Pharmaceuticals chapter HRMY →