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HUTCHMED (China)HMDCF 64 Net-Net Working Capital is $1.13 as of Dec. 2025. GuruFocus rates HMDCF with a GF Score™ of 64/100 and a GF Value™ of $3.76 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 416 Drug Manufacturers companies, HUTCHMED (China) ranks better than 89.42% on this metric.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
HUTCHMED (China)'s Net-Net Working Capital for the quarter that ended in Dec. 2025 was $1.13.
The industry rank for HUTCHMED (China)'s Net-Net Working Capital or its related term are showing as below:
HMDCF's Price-to-Net-Net-Working-Capital is ranked better than 89.42% of 416
companies
in the Drug Manufacturers industry
Industry Median: 7.9
vs HMDCF: 1.96
HUTCHMED (China) (OTCPK:HMDCF) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
HUTCHMED (China) Net-Net Working Capital Related Terms
HUTCHMED (China) Net-Net Working Capital Historical Data
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The historical data trend for HUTCHMED (China)'s Net-Net Working Capital 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.
HMDCF vs ZTS, UTHR, VTRS: Net-Net Working Capital Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, HUTCHMED (China)'s Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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) Price-to-Net-Net-Working-Capital vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, HUTCHMED (China)'s Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where HUTCHMED (China)'s Price-to-Net-Net-Working-Capital 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.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $1.13 mean?
HUTCHMED (China) (HMDCF) has a Net-Net Working Capital of $1.13 as of Dec. 2025. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on HUTCHMED (China) According to the industry distribution chart, HUTCHMED (China) ranks #44 out of 416 companies in the Drug Manufacturers industry, placing it in the top 10.6%.
Is HUTCHMED (China)'s Net-Net Working Capital too high?
HUTCHMED (China)'s current Net-Net Working Capital is $1.13. The Drug Manufacturers industry median Net-Net Working Capital is 7.90. HUTCHMED (China)'s value of $1.13 is 85.7% below this industry median. Based on the distribution chart, HUTCHMED (China) ranks #44 out of 416 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, HUTCHMED (China) has a GF Score™ of 64/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does HUTCHMED (China)'s Net-Net Working Capital compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, HUTCHMED (China) ranks #44 out of 416 companies for Net-Net Working Capital. This places HUTCHMED (China) in the top 11% of its industry — outperforming the majority of peers. The industry median Net-Net Working Capital is 7.90. HUTCHMED (China)'s value of $1.13 is 85.7% below 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-Net Working Capital for a Drug Manufacturers company?
The median Net-Net Working Capital among Drug Manufacturers companies is 7.90, based on 416 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. HUTCHMED (China)'s current Net-Net Working Capital of $1.13 is 85.7% below 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-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on HUTCHMED (China) For the Drug Manufacturers industry, the median Net-Net Working Capital is 7.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HUTCHMED (China)'s current Net-Net Working Capital is $1.13. 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) (HMDCF) is currently considered Possible Value Trap. The stock's GF Value™ is $3.76, compared to a current price of $2.16 — trading 42.6% below its estimated fair value. The current Net-Net Working Capital is $1.13 and 85.7% below the Drug Manufacturers industry median of 7.90. HUTCHMED (China)'s overall GF Score™ is 64/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For HUTCHMED (China) (HMDCF), the current Net-Net Working Capital is $1.13 as of Dec. 2025. 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) (HMDCF) Overvalued in 2026?
Based on GuruFocus' analysis, HUTCHMED (China) stock appears to be undervalued.
The current stock price of $2.16 is trading 42.6% below its estimated GF Value™ of $3.76.
GuruFocus considers HUTCHMED (China) to be Possible Value Trap.
Key valuation signals for HMDCF:
Net-Net Working Capital: $1.13
GF Value™: $3.76 vs. price of $2.16 (42.6% below fair value)
Industry Position: 85.7% below the Drug Manufacturers median (#44 of 416)
No single metric tells the full story. See the HMDCF 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.
64GF Score
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