Latest Ratios: P/E Ratio 148.0x · EV/EBITDA N/A · ROE 45.3%. (2005–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.6B | $2.3B | $2.5B | $3.1B | $2.5B | $5.6B | $894M | $3.3B | $3.1B | $4.9B | $1.6B |
| Enterprise Value | $2.7B | $2.4B | $2.5B | $3.0B | $2.2B | $5.2B | $697M | $3.3B | $3.0B | $4.8B | $1.6B |
| P/E Ratio → | 148.05 | 5.13 | 65.50 | 30.18 | — | — | — | — | — | — | 138.47 |
| P/S Ratio | 4.82 | 4.23 | 3.99 | 3.76 | 5.87 | 15.62 | 3.91 | 16.29 | 14.33 | 20.17 | 7.53 |
| P/B Ratio | 2.12 | 1.86 | 3.26 | 4.23 | 3.93 | 5.35 | 1.72 | 10.67 | 7.44 | 10.03 | 7.98 |
| P/FCF | 265.85 | — | — | 16.87 | — | — | — | — | — | — | — |
| P/OCF | — | — | 5061.35 | 14.36 | — | — | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.28 | 3.89 | 3.52 | 5.20 | 14.67 | 3.05 | 15.86 | 14.05 | 19.95 | 7.43 |
| EV / EBITDA | — | — | — | 111.01 | — | — | — | — | — | — | — |
| EV / EBIT | — | — | — | 160.59 | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | 15.81 | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 38.7% | 38.7% | 44.8% | 54.1% | 27.0% | 91.9% | 17.3% | 21.8% | 32.8% | 27.1% | 27.7% |
| Operating Margin | -10.0% | -10.0% | -6.9% | 2.2% | -168.6% | -100.3% | -87.0% | -74.6% | -43.3% | -22.1% | -21.6% |
| Net Profit Margin | 83.3% | 83.3% | 6.0% | 12.0% | -84.6% | -54.7% | -55.2% | -51.7% | -34.9% | -11.1% | 5.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 45.3% | 45.3% | 5.0% | 14.6% | -43.0% | -25.0% | -30.3% | -29.2% | -16.7% | -7.8% | 7.6% |
| ROA | 30.3% | 30.3% | 3.0% | 8.7% | -30.0% | -18.6% | -21.2% | -21.3% | -13.2% | -5.7% | 4.1% |
| ROIC | -4.1% | -4.1% | -5.2% | 3.1% | -102.5% | -52.4% | -54.4% | -39.6% | -17.7% | -13.0% | -22.2% |
| ROCE | -4.7% | -4.7% | -4.9% | 2.4% | -82.8% | -43.9% | -43.3% | -38.3% | -19.7% | -14.4% | -23.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.08 | 0.08 | 0.12 | 0.12 | 0.04 | 0.04 | 0.07 | 0.11 | 0.07 | 0.07 | 0.28 |
| Debt / EBITDA | — | — | — | 3.24 | — | — | — | — | — | — | — |
| Net Debt / Equity | — | 0.02 | -0.08 | -0.27 | -0.45 | -0.33 | -0.38 | -0.28 | -0.14 | -0.11 | -0.11 |
| Net Debt / EBITDA | — | — | — | -7.43 | — | — | — | — | — | — | — |
| Debt / FCF | — | — | — | -1.06 | — | — | — | — | — | — | — |
| Interest Coverage | -19.05 | -19.05 | -15.22 | 24.21 | -552.17 | -261.03 | -251.94 | -136.00 | -84.88 | -35.79 | -28.02 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 4.96 | 4.96 | 2.83 | 2.72 | 2.37 | 3.89 | 3.35 | 2.80 | 4.33 | 4.13 | 1.76 |
| Quick Ratio | 4.83 | 4.83 | 2.70 | 2.60 | 2.21 | 3.77 | 3.23 | 2.66 | 4.19 | 4.02 | 1.62 |
| Cash Ratio | 4.33 | 4.33 | 2.22 | 2.20 | 1.78 | 3.25 | 2.75 | 1.92 | 3.52 | 3.43 | 1.09 |
| Asset Turnover | — | 0.31 | 0.49 | 0.65 | 0.41 | 0.26 | 0.32 | 0.44 | 0.40 | 0.40 | 0.63 |
| Inventory Turnover | 8.20 | 8.20 | 6.90 | 7.65 | 5.49 | 0.81 | 9.55 | 9.88 | 11.69 | 14.91 | 12.19 |
| Days Sales Outstanding | — | 98.11 | 97.15 | 65.53 | 108.47 | 151.41 | 76.51 | 137.48 | 74.75 | 86.63 | 82.00 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.7% | 19.5% | 1.5% | 3.3% | — | — | — | — | — | — | 0.7% |
| FCF Yield | 0.4% | — | — | 5.9% | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 1.4% | 0.3% | 1.9% | 0.5% | 1.4% | 0.0% | 0.2% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 1.4% | 0.3% | 1.9% | 0.5% | 1.4% | 0.0% | 0.2% | 0.0% | 0.0% |
| Shares Outstanding | — | $175M | $175M | $174M | $169M | $159M | $28M | $133M | $133M | $123M | $120M |
Includes 30+ ratios · 21 years · Updated daily
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Quick answers to the most common questions about buying HCM stock.
HUTCHMED (China) Limited's current P/E ratio is 148.0x. The historical average is 59.8x. This places it at the 100th percentile of its historical range.
HUTCHMED (China) Limited's return on equity (ROE) is 45.3%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is -8.6%.
Based on historical data, HUTCHMED (China) Limited is trading at a P/E of 148.0x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
HUTCHMED (China) Limited has 38.7% gross margin and -10.0% operating margin.
Key Metrics
Top Statement Risk
Milestone revenue volatility and thin cash
Milestone Distortions Mask Core Profitability
TTM net margin of 83.3% is inflated by one-time licensing gains, while operating margin remains negative at -9.95%, per reported financials. Core operations are barely profitable, as evidenced by 2026Q2 net income of only $8.0M.
The reported net margin is not indicative of recurring earning power; it reflects a $227.5M windfall in 2025Q1-Q2, likely from the Takeda upfront payment. Excluding such non-recurring items, the underlying business operates at a loss, with operating margin improving to +0.3% in 2026Q2 only due to aggressive R&D and SG&A cuts. Investors should focus on ex-item operating margins and the trajectory of royalty income from Fruzaqla, which may eventually drive sustainable profitability.
Capital Returns Distorted by One-Time Gains
ROE swung from 22.6% in 2025Q1 to 0.6% in 2026Q2, per reported figures, reflecting the absence of milestone income. ROIC remains near zero, indicating the core business is not yet generating returns above its cost of capital.
The 2025 spike in ROE was driven by the licensing windfall, not operational compounding. With ROIC hovering around 0% and negative in several quarters, the company is still in an investment phase, deploying capital into R&D and commercialization ahead of potential returns. The low asset turnover of 0.08x suggests an asset-heavy model relative to revenue, but this is typical for a biotech with a growing pipeline. Sustainable value creation will depend on converting pipeline assets into royalty streams that lift ROIC above the cost of capital.
Working Capital Efficiency Improves but Cash Cycle Lengthens
Cash conversion cycle extended from 90 days in 2024Q1 to 83 days in 2026Q2, per reported data, as DSO improved to 77 days but DPO remained low. Asset turnover is minimal at 0.08x, reflecting the capital-intensive nature of drug development.
The modest improvement in CCC is driven by faster receivables collection, but the cycle remains long due to high inventory days (32) and low payable days (27), indicating limited supplier leverage. The asset turnover of 0.08x is typical for a biotech with significant cash and investments relative to revenue, but it underscores the need for revenue growth to improve efficiency. As royalty income scales, asset turnover should improve, but investors should monitor working capital swings that have historically caused cash flow volatility.
Minimal Debt Masks Refinancing and Funding Needs
Debt-to-equity stands at 0.07, per reported figures, indicating a conservative leverage profile. However, interest coverage is not reported, and the thin cash position of $71M relative to R&D commitments suggests potential funding gaps if milestones are delayed.
The low leverage provides ample headroom for borrowing, but the company's reliance on partnership milestones for cash generation introduces refinancing risk. With operating losses persisting and cash reserves declining from $204M in 2024Q1 to $106.6M in 2026Q2, the company may need to access capital markets or secure additional partnerships to fund its pipeline. The absence of guidance increases uncertainty around near-term cash needs, warranting close monitoring of management's capital allocation decisions.
High Liquidity Ratios but Shrinking Cash Cushion
Current ratio improved to 5.64 in 2026Q2, per reported figures, but cash and equivalents fell to $71M, down from $204M in 2024Q1. The quick ratio of 5.50 suggests minimal inventory dependence, yet the absolute cash buffer appears thin relative to operating burn.
The high current ratio is largely due to a substantial equity infusion that boosted total assets, but the declining cash balance indicates a shrinking liquidity buffer. With quarterly operating losses and R&D expenses averaging around $40M, the current cash position may only cover a few quarters of operations without additional milestone payments or financing. Investors should monitor the runway and the potential need for dilutive capital raises if milestones are delayed.
Misapplied Net Margin Obscures Core Economics
The most commonly misapplied ratio is net margin, which at 83.3% TTM is distorted by one-time licensing gains, per reported financials. Investors should instead use operating margin or ex-item net income to assess recurring profitability.
Headline net margin is misleading for HUTCHMED because it includes large, non-recurring upfront payments from partnerships like Takeda. These payments are not indicative of ongoing earning power and can create a false sense of profitability. A more appropriate metric is operating margin, which reflects the cost of R&D and commercialization, or a normalized net margin that excludes milestone income. Additionally, cash flow from operations should be scrutinized, as cumulative net income of $503M over ten quarters contrasts with negative operating cash flow of -$32M, highlighting the earnings-cash gap. Investors should adjust for these distortions to avoid overvaluing the company's core operations.