AIM:HCM

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Executive Summary

Hutchison China MediTech Limited, a commercial-stage biopharmaceutical company, engages in the discovery, development, and commercialization of targeted therapeutics and immunotherapies for oncology and immunological diseases in the People’s Republic of China. More Details


Snowflake Analysis

Excellent balance sheet and slightly overvalued.

Share Price & News

How has Hutchison China MediTech's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HCM is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: HCM's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

1.8%

HCM

-4.1%

GB Pharmaceuticals

-0.4%

GB Market


1 Year Return

23.5%

HCM

-5.5%

GB Pharmaceuticals

-10.1%

GB Market

Return vs Industry: HCM exceeded the UK Pharmaceuticals industry which returned -5.5% over the past year.

Return vs Market: HCM exceeded the UK Market which returned -10.1% over the past year.


Shareholder returns

HCMIndustryMarket
7 Day1.8%-4.1%-0.4%
30 Day2.5%0.8%13.4%
90 Day-6.5%-5.8%6.4%
1 Year23.5%23.5%-2.0%-5.5%-6.5%-10.1%
3 Year-10.4%-10.4%48.3%32.1%1.5%-10.9%
5 Year65.3%65.3%68.0%35.5%27.4%-1.6%

Long-Term Price Volatility Vs. Market

How volatile is Hutchison China MediTech's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hutchison China MediTech undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HCM (£4.58) is trading below our estimate of fair value (£56.76)

Significantly Below Fair Value: HCM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HCM is unprofitable, so we can't compare its PE Ratio to the GB Pharmaceuticals industry average.

PE vs Market: HCM is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HCM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HCM is overvalued based on its PB Ratio (12.3x) compared to the GB Pharmaceuticals industry average (4.2x).


Next Steps

Future Growth

How is Hutchison China MediTech forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

52.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HCM is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: HCM is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: HCM is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: HCM's revenue (29.9% per year) is forecast to grow faster than the UK market (6.8% per year).

High Growth Revenue: HCM's revenue (29.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HCM is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Hutchison China MediTech performed over the past 5 years?

-34.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HCM is currently unprofitable.

Growing Profit Margin: HCM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HCM is unprofitable, and losses have increased over the past 5 years at a rate of 34.4% per year.

Accelerating Growth: Unable to compare HCM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HCM is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (21.9%).


Return on Equity

High ROE: HCM has a negative Return on Equity (-29.55%), as it is currently unprofitable.


Next Steps

Financial Health

How is Hutchison China MediTech's financial position?


Financial Position Analysis

Short Term Liabilities: HCM's short term assets ($374.7M) exceed its short term liabilities ($119.4M).

Long Term Liabilities: HCM's short term assets ($374.7M) exceed its long term liabilities ($39.1M).


Debt to Equity History and Analysis

Debt Level: HCM's debt to equity ratio (7.5%) is considered satisfactory.

Reducing Debt: HCM's debt to equity ratio has reduced from 48.9% to 7.5% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: HCM has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if HCM has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Hutchison China MediTech current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HCM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HCM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HCM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HCM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HCM's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.8yrs

Average management tenure


CEO

Christian Hogg (54 yo)

14.83yrs

Tenure

US$1,441,232

Compensation

Mr. Christian Hogg, BSc, MBA has been the Chief Executive Officer of Hutchison China MediTech Ltd., since 2006. Mr. Hogg serves as the Chief Operating Officer of Healthcare Investments of Hutchison Whampoa...


CEO Compensation Analysis

Compensation vs Market: Christian's total compensation ($USD1.44M) is below average for companies of similar size in the UK market ($USD2.12M).

Compensation vs Earnings: Christian's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Chi Keung To
Executive Chairman14.83yrsUS$80.00k0.35%
$ 11.6m
Christian Hogg
CEO & Executive Director14.83yrsUS$1.44m1.58%
$ 52.5m
Johnny Cheng
CFO & Executive Director9.83yrsUS$769.68k0.37%
$ 12.2m
Wei-Guo Su
Chief Scientific Officer3.67yrsUS$1.13m0.043%
$ 1.4m
Edith Shih
Company Secretary & Non-Executive Director14.83yrsUS$70.00k0.17%
$ 5.6m
Mark Lee
Senior Vice President of Corporate Finance & Developmentno datano datano data
Charles Nixon
Group General Counsel4.83yrsno datano data
Andrew Shih
Senior Vice President of Human Resources - Organization & Leadership Development1.83yrsno datano data
May Wang
Senior Vice President of Business Development & Strategic Alliancesno datano datano data
Hong Chen
Chief Commercial Officer - China2.83yrsno datano data
Zhenping Wu
Senior Vice President of Pharmaceutical Sciences8.83yrsno datano data
Marek Kania
MD & Chief Medical Officer of International2.83yrsno datano data

8.8yrs

Average Tenure

57yo

Average Age

Experienced Management: HCM's management team is seasoned and experienced (8.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chi Keung To
Executive Chairman14.83yrsUS$80.00k0.35%
$ 11.6m
Christian Hogg
CEO & Executive Director14.83yrsUS$1.44m1.58%
$ 52.5m
Johnny Cheng
CFO & Executive Director9.83yrsUS$769.68k0.37%
$ 12.2m
Wei-Guo Su
Chief Scientific Officer3.67yrsUS$1.13m0.043%
$ 1.4m
Edith Shih
Company Secretary & Non-Executive Director14.83yrsUS$70.00k0.17%
$ 5.6m
Dan Eldar
Non-Executive Director4.25yrsUS$70.00k0.0090%
$ 299.8k
Graeme Allan Jack
Independent Non-Executive Director3.67yrsUS$104.00k0.0021%
$ 70.3k
Paul Rutherford Carter
Senior Independent Non-Executive Director3.75yrsUS$117.00k0.0050%
$ 165.2k
Karen Jean Ferrante
Independent Non-Executive Director3.75yrsUS$102.50k0.0041%
$ 135.7k
Shu Kam Mok
Independent Non-Executive Director3.08yrsUS$84.00k0.0071%
$ 234.5k

4.0yrs

Average Tenure

62.5yo

Average Age

Experienced Board: HCM's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.8%.


Top Shareholders

Company Information

Hutchison China MediTech Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hutchison China MediTech Limited
  • Ticker: HCM
  • Exchange: AIM
  • Founded: 2000
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: UK£3.317b
  • Shares outstanding: 724.17m
  • Website: https://www.chi-med.com

Number of Employees


Location

  • Hutchison China MediTech Limited
  • Cheung Kong Center
  • 48th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HCMAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPMay 2006
HNCM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2006
H7T2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2006
HCMNasdaqGS (Nasdaq Global Select)SPONSORED ADRUSUSDMar 2016
H7T1DB (Deutsche Boerse AG)SPONSORED ADRDEEURMar 2016

Biography

Hutchison China MediTech Limited, a commercial-stage biopharmaceutical company, engages in the discovery, development, and commercialization of targeted therapeutics and immunotherapies for oncology and im...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/28 18:51
End of Day Share Price2020/11/27 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.