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ARCUTIS BIOTHERAPEUTICS INC (ARQT) Stock Fundamental Analysis

NASDAQ:ARQT - Nasdaq - US03969K1088 - Common Stock - Currency: USD

14.675  +0.23 (+1.56%)

Fundamental Rating

2

Taking everything into account, ARQT scores 2 out of 10 in our fundamental rating. ARQT was compared to 568 industry peers in the Biotechnology industry. ARQT has a bad profitability rating. Also its financial health evaluation is rather negative. ARQT is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year ARQT has reported negative net income.
In the past year ARQT has reported a negative cash flow from operations.
In the past 5 years ARQT always reported negative net income.
ARQT had a negative operating cash flow in each of the past 5 years.
ARQT Yearly Net Income VS EBIT VS OCF VS FCFARQT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 -100M -200M -300M

1.2 Ratios

Looking at the Return On Assets, with a value of -40.14%, ARQT is in line with its industry, outperforming 57.04% of the companies in the same industry.
Looking at the Return On Equity, with a value of -88.89%, ARQT is in line with its industry, outperforming 49.65% of the companies in the same industry.
Industry RankSector Rank
ROA -40.14%
ROE -88.89%
ROIC N/A
ROA(3y)-62.08%
ROA(5y)-56.46%
ROE(3y)-177.71%
ROE(5y)-130.52%
ROIC(3y)N/A
ROIC(5y)N/A
ARQT Yearly ROA, ROE, ROICARQT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 2024 -50 -100 -150 -200 -250

1.3 Margins

Looking at the Gross Margin, with a value of 90.27%, ARQT belongs to the top of the industry, outperforming 91.73% of the companies in the same industry.
ARQT does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 90.27%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
ARQT Yearly Profit, Operating, Gross MarginsARQT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 2024 0 -2K -4K -6K -8K

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3

2. Health

2.1 Basic Checks

ARQT does not have a ROIC to compare to the WACC, probably because it is not profitable.
ARQT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ARQT has been increased compared to 5 years ago.
The debt/assets ratio for ARQT has been reduced compared to a year ago.
ARQT Yearly Shares OutstandingARQT Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
ARQT Yearly Total Debt VS Total AssetsARQT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

2.2 Solvency

ARQT has an Altman-Z score of 1.10. This is a bad value and indicates that ARQT is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.10, ARQT is doing good in the industry, outperforming 68.49% of the companies in the same industry.
A Debt/Equity ratio of 0.68 indicates that ARQT is somewhat dependend on debt financing.
The Debt to Equity ratio of ARQT (0.68) is worse than 76.41% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.68
Debt/FCF N/A
Altman-Z 1.1
ROIC/WACCN/A
WACC10.78%
ARQT Yearly LT Debt VS Equity VS FCFARQT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M -200M

2.3 Liquidity

A Current Ratio of 4.15 indicates that ARQT has no problem at all paying its short term obligations.
ARQT has a Current ratio of 4.15. This is comparable to the rest of the industry: ARQT outperforms 48.59% of its industry peers.
A Quick Ratio of 3.97 indicates that ARQT has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.97, ARQT is in line with its industry, outperforming 48.94% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 4.15
Quick Ratio 3.97
ARQT Yearly Current Assets VS Current LiabilitesARQT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

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5

3. Growth

3.1 Past

ARQT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 70.41%, which is quite impressive.
The Revenue has grown by 229.74% in the past year. This is a very strong growth!
EPS 1Y (TTM)70.41%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%87.5%
Revenue 1Y (TTM)229.74%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%427.58%

3.2 Future

ARQT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.63% yearly.
The Revenue is expected to grow by 35.38% on average over the next years. This is a very strong growth
EPS Next Y42.96%
EPS Next 2Y48.94%
EPS Next 3Y46.62%
EPS Next 5Y35.63%
Revenue Next Year66.45%
Revenue Next 2Y52.77%
Revenue Next 3Y47.13%
Revenue Next 5Y35.38%

3.3 Evolution

ARQT Yearly Revenue VS EstimatesARQT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 200M 400M 600M 800M
ARQT Yearly EPS VS EstimatesARQT Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 -10 -20

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for ARQT. In the last year negative earnings were reported.
Also next year ARQT is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
ARQT Price Earnings VS Forward Price EarningsARQT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 40 60 80

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
ARQT Per share dataARQT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 0.5 -0.5 1 -1 1.5

4.3 Compensation for Growth

A more expensive valuation may be justified as ARQT's earnings are expected to grow with 46.62% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y48.94%
EPS Next 3Y46.62%

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0

5. Dividend

5.1 Amount

No dividends for ARQT!.
Industry RankSector Rank
Dividend Yield N/A

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ARCUTIS BIOTHERAPEUTICS INC

NASDAQ:ARQT (4/24/2025, 3:21:04 PM)

14.675

+0.23 (+1.56%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)02-25 2025-02-25/amc
Earnings (Next)05-06 2025-05-06
Inst Owners106.65%
Inst Owner Change0%
Ins Owners2.04%
Ins Owner Change0.32%
Market Cap1.74B
Analysts82.86
Price Target20.66 (40.78%)
Short Float %18.45%
Short Ratio9.07
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)43.92%
Min EPS beat(2)22.44%
Max EPS beat(2)65.4%
EPS beat(4)4
Avg EPS beat(4)41.29%
Min EPS beat(4)20.28%
Max EPS beat(4)65.4%
EPS beat(8)8
Avg EPS beat(8)24.96%
EPS beat(12)11
Avg EPS beat(12)19.57%
EPS beat(16)15
Avg EPS beat(16)17.22%
Revenue beat(2)2
Avg Revenue beat(2)16.47%
Min Revenue beat(2)16.29%
Max Revenue beat(2)16.64%
Revenue beat(4)4
Avg Revenue beat(4)67%
Min Revenue beat(4)4.03%
Max Revenue beat(4)231.03%
Revenue beat(8)7
Avg Revenue beat(8)37.03%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.89%
PT rev (3m)6.58%
EPS NQ rev (1m)4.7%
EPS NQ rev (3m)39.44%
EPS NY rev (1m)21.77%
EPS NY rev (3m)33.93%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)12.71%
Revenue NY rev (1m)2.3%
Revenue NY rev (3m)14.73%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 8.86
P/FCF N/A
P/OCF N/A
P/B 11.05
P/tB 11.76
EV/EBITDA N/A
EPS(TTM)-1.16
EYN/A
EPS(NY)-0.66
Fwd EYN/A
FCF(TTM)-0.99
FCFYN/A
OCF(TTM)-0.95
OCFYN/A
SpS1.66
BVpS1.33
TBVpS1.25
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -40.14%
ROE -88.89%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 90.27%
FCFM N/A
ROA(3y)-62.08%
ROA(5y)-56.46%
ROE(3y)-177.71%
ROE(5y)-130.52%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.56
Health
Industry RankSector Rank
Debt/Equity 0.68
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 197.88%
Cap/Sales 2.62%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 4.15
Quick Ratio 3.97
Altman-Z 1.1
F-Score4
WACC10.78%
ROIC/WACCN/A
Cap/Depr(3y)909.75%
Cap/Depr(5y)643.63%
Cap/Sales(3y)211.41%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)70.41%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%87.5%
EPS Next Y42.96%
EPS Next 2Y48.94%
EPS Next 3Y46.62%
EPS Next 5Y35.63%
Revenue 1Y (TTM)229.74%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%427.58%
Revenue Next Year66.45%
Revenue Next 2Y52.77%
Revenue Next 3Y47.13%
Revenue Next 5Y35.38%
EBIT growth 1Y46.75%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year37.93%
EBIT Next 3Y37.44%
EBIT Next 5Y32.75%
FCF growth 1Y52.6%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y54.6%
OCF growth 3YN/A
OCF growth 5YN/A