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HUTCHMED (China)STU:H7T1 72 Net Margin % is 5.72% as of Jun. 2026. GuruFocus rates STU:H7T1 with a GF Score™ of 72/100 and a GF Value™ of €11.20 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 962 Drug Manufacturers companies, HUTCHMED (China) ranks worse than 56.96% on this metric.
HUTCHMED (China) (STU:H7T1) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
HUTCHMED (China) Net Margin % Related Terms
HUTCHMED (China) Net Margin % Historical Data
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The historical data trend for HUTCHMED (China)'s Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:H7T1 vs ZTS, UTHR, VTRS: Net Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, HUTCHMED (China)'s Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
HUTCHMED (China) Net Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, HUTCHMED (China)'s Net Margin % distribution charts can be found below:
* The bar in red indicates where HUTCHMED (China)'s Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HUTCHMED (China) (STU:H7T1) has a Net Margin % of 5.72% as of Jun. 2026. Net margin is the ratio of total net income to net sales. View historical data on HUTCHMED (China) and its competitors. According to the industry distribution chart, HUTCHMED (China) ranks #548 out of 962 companies in the Drug Manufacturers industry, placing it in the top 57%.
Is HUTCHMED (China)'s Net Margin % too high?
HUTCHMED (China)'s current Net Margin % is 5.72%. The Drug Manufacturers industry median Net Margin % is 5.37. HUTCHMED (China)'s value of 5.72% is 6.5% above this industry median. Based on the distribution chart, HUTCHMED (China) ranks #548 out of 962 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, HUTCHMED (China) has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does HUTCHMED (China)'s Net Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, HUTCHMED (China) ranks #548 out of 962 companies for Net Margin %. This places HUTCHMED (China) in the lower half of its industry. The industry median Net Margin % is 5.37. HUTCHMED (China)'s value of 5.72% is 6.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Drug Manufacturers company?
The median Net Margin % among Drug Manufacturers companies is 5.37, based on 962 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. HUTCHMED (China)'s current Net Margin % of 5.72% is 6.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on HUTCHMED (China) and its competitors. For the Drug Manufacturers industry, the median Net Margin % is 5.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HUTCHMED (China)'s current Net Margin % is 5.72%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HUTCHMED (China) stock overvalued right now?
Based on GuruFocus' analysis, HUTCHMED (China) (STU:H7T1) is currently considered Modestly Undervalued. The stock's GF Value™ is €11.20, compared to a current price of €10.00 — trading 10.7% below its estimated fair value. The current Net Margin % is 5.72% and 6.5% above the Drug Manufacturers industry median of 5.37. HUTCHMED (China)'s overall GF Score™ is 72/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For HUTCHMED (China) (STU:H7T1), the current Net Margin % is 5.72% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is HUTCHMED (China) (STU:H7T1) Overvalued in 2026?
Based on GuruFocus' analysis, HUTCHMED (China) stock appears to be undervalued.
The current stock price of €10.00 is trading 10.7% below its estimated GF Value™ of €11.20.
GuruFocus considers HUTCHMED (China) to be Modestly Undervalued.
Key valuation signals for STU:H7T1:
Net Margin %: 5.72%
GF Value™: €11.20 vs. price of €10.00 (10.7% below fair value)
Industry Position: 6.5% above the Drug Manufacturers median (#548 of 962)
No single metric tells the full story. See the STU:H7T1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HUTCHMED (China) Ltd is a biopharmaceutical company engaged in the discovery, development, and commercialization of targeted therapies and immunotherapies for the treatment of cancer and immunological diseases. The company has a portfolio of several cancer drug candidates currently in clinical studies world-wide and an extensive commercial infrastructure in its home market, China. The company operates in two reportable segments: Oncology/Immunology and Other Ventures.
72GF Score
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