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HCM, HUTCHMED (China) Limited

Pharmaceuticals consumer brand Distress / turnaround

Revenue is Oncology/Immunology (52%) and Other Ventures (48%).

Latest annual: FY2025 20-F · 1 ADS = 5 ordinary shares

HCM · HUTCHMED (China) Limited

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

Gross margin 39% 5-yr avg 41%

Operating margin −7.1% 5-yr avg −39.9%

ROIC −3% 5-yr avg −29%

Owner-earnings margin −14% 5-yr avg −23%

Free cash flow margin −14% 5-yr avg −26%

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: A pharmaceutical business, where patents grant a temporary monopoly the pipeline must keep refilling.
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 −33% through the cycle on a 35% 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
$67M	$71M	—	—	—	—	$115M	$454M	$281M	$212M	$212M	Gross profitGross prof.
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
$10M	$14M	$17M	$21M	$24M	$41M	$76M	$100M	$92M	$95M	$95M	Net PP&ENet PP&E
$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

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

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.

III

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 interest

Operating 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.
How heavy is the debt, net of cash? +$1.3B

Net cash

Cash $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.
How long is cash tied up? 80d

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?

Return on invested capital -23%

Below average through the cycle

10-yr median, range -102%–3%; -3% latest = NOPAT ($34M) ÷ invested capital $1.3B

Industry peers: median -35%

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.
Owner-earnings margin -16%

Consumes cash through the cycle

10-yr median margin, range -65%–25%; latest ($79M) = operating cash ($65M) − maintenance capex $14M

Industry peers: median -13%

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 -16% median across 10 years.
Are earnings backed by cash? -0.14×

Thinly cash-backed

Cash 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?

Where do the earnings go? —

Not enough data

What this means
The filing data didn't include the inputs for this check.
Investing or harvesting? 1.06×

Maintaining

Capex $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 4 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 Miss

Revenue ≥ $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 Pass

Current 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 Pass

Debt ≤ 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 Miss

A 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 —

Uninterrupted dividends · no dividend line tagged in the data

What this means
An unbroken dividend was Graham's mark of durability. This record carries no dividends-paid line in any year — common for partnerships, whose distributions file under tags the chain doesn't read — so the criterion is withheld rather than judged on silence.
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.

All figures as filed; the source filing is linked above.

Current Position

as of fiscal year-end, Dec 31, 2025

Can 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.

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 column names the period it is read over, and a median resting on fewer than three years carries that count beside it; the group median at the foot is the line to read each figure against.

Company	Revenuelatest FY, USD	Gross marginmedian over the record	Op. marginmedian over the record	ROICmedian over the record	Owner earn. marginmedian over the record
TGTXTG Therapeutics Inc.	$616M	88%4y	12.7%3y	-572%	-12%3y
OPKOPKO Health Inc.	$607M	34%	-18.8%	-8%	-13%
INSMInsmed Incorporated	$606M	77%	-199.0%	-138%	-178%
CPRXCatalyst Pharmaceuticals Inc.	$589M	86%	37.2%	48%	38%
HCMHUTCHMED (China) Limited	$549M	35%	-32.7%	-23%	-16%
MIRMMirum Pharmaceuticals Inc.	$521M	—	-42.3%	-61%	-18%
BBIOBridgeBio Pharma Inc.	$502M	96%	-656.4%	-154%1y	-546%
NATRNature's Sunshine Products Inc.	$480M	73%	4.3%	12%	4%
Group median	—	77%	-25.7%	-42%	-14%

The price

What a price has to assume.

What the price implies

reverse-DCF

Enter 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.

Today’s price $

Base Normalize · through-cycle ($30M) Net of stock comp

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.65% 10-year Treasury (Aug 19, 2026) + 4.35 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth, delivered—

Owner-earnings yield—

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 (4.65%, as of Aug 19, 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 ($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.

Weigh HCM against another business →

Cite: Owner Scorecard, "HUTCHMED (China) Limited (HCM), the owner's record," https://ownerscorecard.com/c/HCM, data as of 2026-08-17.

Manual order: ← HBM its page in the Manual HDB →

Industry order: ← GYRE the Pharmaceuticals chapter HRMY →