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Upturn AI Summary - About
HUTCHMED DRC(HCM)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for HCM
11/06/2026: HCM (1-star) is currently NOT-A-BUY. Pass it for now.
HUTCHMED (China) Limited is a commercial-stage biopharmaceutical company that specializes in developing targeted therapies for oncology and immunology. The firm stands out for its effective in-house discovery engine and a strong commercial infrastructure in China, which supports its ambitious global clinical development. Its primary growth opportunity lies in the international out-licensing and regulatory approval of its lead assets, such as fruquintinib. However, investors must consider risks related to high clinical trial cash burn, geopolitical tensions, and stiff competition from global pharmaceutical leaders. The stock is most suitable for long-term growth-oriented investors who are comfortable with the inherent volatility of clinical-stage biotechnology developments.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Strong fit | The company offers significant upside potential through its robust pipeline of targeted oncology drugs. |
| Momentum investor | Mixed fit | Fit depends on positive clinical readouts and regulatory news, which drive short-term price volatility. |
| Value investor | Weak fit | The stock is primarily valued on future pipeline potential rather than current earnings or dividends. |
| Dividend investor | Weak fit | HUTCHMED does not pay dividends and reinvests all capital into R&D. |
| Low-risk investor | Weak fit | Biotech clinical development involves high binary risk and regulatory exposure. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | High | Clinical trial outcomes and geopolitical news cause significant price swings. |
| Valuation risk | Medium / high | Market pricing of future drug potential is highly speculative. |
| Competition risk (Oncology) | High | Facing well-funded incumbents reduces the margin for error in drug adoption. |
| Business quality | Medium | The company possesses a strong scientific foundation but remains in a capital-intensive growth phase. |
| Dividend income | Low / none | No capital return program currently exists. |
| Execution risk | Medium / high | Successful translation of research into global regulatory approval is difficult. |
Price Behavior
Downtrend
The stock has experienced a sustained decline in price over recent periods.
Moderately Choppy
The stock has experienced noticeable price swings while retaining some directional structure.
Analysis of Past Performance
Type Stock | Historic Profit -42.71% | Avg. Invested days 36 | Today’s Advisory PASS |
Upturn Advisory Rating  | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 11/06/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 2.64B USD | Price to earnings Ratio 151.6 | 1Y Target Price 21.14 |
Price to earnings Ratio 151.6 | 1Y Target Price 21.14 | ||
Volume (30-day avg) 53.2K shares | Beta 0.5 | 52 Weeks Range 9.77 - 16.33 | Updated Date 11/07/2026 |
52 Weeks Range 9.77 - 16.33 | Updated Date 11/07/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.1 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Oncology Product Sales | Revenue from commercialized drugs like fruquintinib and savolitinib in China. | The company sells actual cancer treatments that generate revenue. |
| Partnerships/Licensing | Milestone payments and royalties from global pharmaceutical partners. | The company makes money by selling rights to its research to bigger players. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Valuation
Trailing PE 151.6 | Forward PE 256.41 | Enterprise Value 1.18B | Price to Sales(TTM) 4.8 |
Enterprise Value 1.18B | Price to Sales(TTM) 4.8 | ||
Enterprise Value to Revenue 2.15 | Enterprise Value to EBITDA 2.27 | Shares Outstanding 173.81M | Shares Floating 105.61M |
Shares Outstanding 173.81M | Shares Floating 105.61M | ||
Percent Insiders 0.05 | Percent Institutions 2.53 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
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