HUTCHMED DRC Profitability Analysis
| HCM Stock | USD 17.41 0.05 0.29% |
For HUTCHMED DRC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of HUTCHMED DRC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well HUTCHMED DRC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between HUTCHMED DRC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of HUTCHMED DRC over time as well as its relative position and ranking within its peers.
HUTCHMED |
HUTCHMED DRC's Revenue Breakdown by Earning Segment
Check out Risk vs Return Analysis.
Is Pharmaceuticals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of HUTCHMED DRC. If investors know HUTCHMED will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about HUTCHMED DRC listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.84) | Earnings Share (0.25) | Revenue Per Share 3.575 | Quarterly Revenue Growth (0.43) | Return On Assets (0.06) |
The market value of HUTCHMED DRC is measured differently than its book value, which is the value of HUTCHMED that is recorded on the company's balance sheet. Investors also form their own opinion of HUTCHMED DRC's value that differs from its market value or its book value, called intrinsic value, which is HUTCHMED DRC's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because HUTCHMED DRC's market value can be influenced by many factors that don't directly affect HUTCHMED DRC's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between HUTCHMED DRC's value and its price as these two are different measures arrived at by different means. Investors typically determine if HUTCHMED DRC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, HUTCHMED DRC's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
HUTCHMED DRC Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining HUTCHMED DRC's current stock value. Our valuation model uses many indicators to compare HUTCHMED DRC value to that of its competitors to determine the firm's financial worth. HUTCHMED DRC is one of the top stocks in return on equity category among its peers. It is rated # 2 in return on asset category among its peers . Comparative valuation analysis is a catch-all technique that is used if you cannot value HUTCHMED DRC by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.HUTCHMED Return On Asset vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
HUTCHMED DRC |
| = | -0.0544 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
HUTCHMED DRC |
| = | -0.059 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
HUTCHMED Return On Asset Comparison
HUTCHMED DRC is currently under evaluation in return on asset category among its peers.
HUTCHMED DRC Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in HUTCHMED DRC, profitability is also one of the essential criteria for including it into their portfolios because, without profit, HUTCHMED DRC will eventually generate negative long term returns. The profitability progress is the general direction of HUTCHMED DRC's change in net profit over the period of time. It can combine multiple indicators of HUTCHMED DRC, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
HUTCHMED Limited discovers, develops, and commercializes targeted therapeutics and immunotherapies for cancer and immunological diseases in HongKong and internationally. The company was incorporated in 2000 and is headquartered in Central, Hong Kong. Hutchmed China operates under Drug ManufacturersSpecialty Generic classification in the United States and is traded on NASDAQ Exchange. It employs 2110 people.
HUTCHMED Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on HUTCHMED DRC. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of HUTCHMED DRC position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the HUTCHMED DRC's important profitability drivers and their relationship over time.
HUTCHMED DRC Profitability Trends
HUTCHMED DRC profitability trend refers to the progression of profit or loss within a business. An upward trend means that HUTCHMED DRC's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is HUTCHMED DRC's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
Use HUTCHMED DRC in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if HUTCHMED DRC position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in HUTCHMED DRC will appreciate offsetting losses from the drop in the long position's value.HUTCHMED DRC Pair Trading
HUTCHMED DRC Pair Trading Analysis
The ability to find closely correlated positions to HUTCHMED DRC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace HUTCHMED DRC when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back HUTCHMED DRC - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling HUTCHMED DRC to buy it.
The correlation of HUTCHMED DRC is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as HUTCHMED DRC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if HUTCHMED DRC moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for HUTCHMED DRC can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your HUTCHMED DRC position
In addition to having HUTCHMED DRC in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Restaraunts Hotels Motels Thematic Idea Now
Restaraunts Hotels Motels
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Restaraunts Hotels Motels theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Restaraunts Hotels Motels Theme or any other thematic opportunities.
| View All Next | Launch |
Check out Risk vs Return Analysis. To learn how to invest in HUTCHMED Stock, please use our How to Invest in HUTCHMED DRC guide.You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
To fully project HUTCHMED DRC's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of HUTCHMED DRC at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include HUTCHMED DRC's income statement, its balance sheet, and the statement of cash flows.