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ARCUTIS BIOTHERAPEUTICS INC (ARQT) Stock Fundamental Analysis

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

13.02  -0.4 (-2.98%)

Premarket: 13.29 +0.27 (+2.07%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to ARQT. ARQT was compared to 571 industry peers in the Biotechnology industry. Both the profitability and financial health of ARQT have multiple concerns. While showing a medium growth rate, ARQT is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

ARQT had negative earnings in the past year.
ARQT had a negative operating cash flow in the past year.
ARQT had negative earnings in each of the past 5 years.
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 -100M -200M -300M

1.2 Ratios

ARQT has a Return On Assets of -44.71%. This is comparable to the rest of the industry: ARQT outperforms 50.09% of its industry peers.
With a Return On Equity value of -124.83%, ARQT is not doing good in the industry: 60.96% of the companies in the same industry are doing better.
Industry RankSector Rank
ROA -44.71%
ROE -124.83%
ROIC N/A
ROA(3y)-65.56%
ROA(5y)-56.28%
ROE(3y)-171.19%
ROE(5y)-121.02%
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 -50 -100 -150 -200 -250

1.3 Margins

The Gross Margin of ARQT (89.57%) is better than 92.87% of its industry peers.
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 89.57%
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 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.
ARQT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ARQT is higher compared to a year ago.
ARQT Yearly Shares OutstandingARQT Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M
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 100M 200M 300M 400M

2.2 Solvency

ARQT has an Altman-Z score of -0.67. 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 -0.67, ARQT is doing good in the industry, outperforming 61.14% of the companies in the same industry.
A Debt/Equity ratio of 0.67 indicates that ARQT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.67, ARQT is doing worse than 77.90% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.67
Debt/FCF N/A
Altman-Z -0.67
ROIC/WACCN/A
WACC10.04%
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 0 100M -100M 200M -200M

2.3 Liquidity

ARQT has a Current Ratio of 2.46. This indicates that ARQT is financially healthy and has no problem in meeting its short term obligations.
ARQT has a worse Current ratio (2.46) than 72.55% of its industry peers.
A Quick Ratio of 2.38 indicates that ARQT has no problem at all paying its short term obligations.
With a Quick ratio value of 2.38, ARQT is not doing good in the industry: 71.66% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 2.46
Quick Ratio 2.38
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 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 59.13%, which is quite impressive.
Looking at the last year, ARQT shows a very strong growth in Revenue. The Revenue has grown by 182.85%.
EPS 1Y (TTM)59.13%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%54.79%
Revenue 1Y (TTM)182.85%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%17.44%

3.2 Future

The Earnings Per Share is expected to grow by 21.11% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 65.29% on average over the next years. This is a very strong growth
EPS Next Y65.59%
EPS Next 2Y33.58%
EPS Next 3Y26.28%
EPS Next 5Y21.11%
Revenue Next Year222.23%
Revenue Next 2Y123.95%
Revenue Next 3Y94.45%
Revenue Next 5Y65.29%

3.3 Evolution

ARQT Yearly Revenue VS EstimatesARQT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 200M 400M 600M 800M 1B
ARQT Yearly EPS VS EstimatesARQT Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 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.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for ARQT. No positive earnings are expected for the next year.
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 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 1 -1

4.3 Compensation for Growth

ARQT's earnings are expected to grow with 26.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y33.58%
EPS Next 3Y26.28%

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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 (2/21/2025, 8:01:45 PM)

Premarket: 13.29 +0.27 (+2.07%)

13.02

-0.4 (-2.98%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)11-06 2024-11-06/amc
Earnings (Next)02-25 2025-02-25/amc
Inst Owners106.65%
Inst Owner Change-98.8%
Ins Owners2.04%
Ins Owner Change-1.22%
Market Cap1.52B
Analysts82.86
Price Target19.89 (52.76%)
Short Float %18.13%
Short Ratio8.79
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)21.36%
Min EPS beat(2)20.28%
Max EPS beat(2)22.44%
EPS beat(4)4
Avg EPS beat(4)27.17%
Min EPS beat(4)8.92%
Max EPS beat(4)57.02%
EPS beat(8)8
Avg EPS beat(8)19.12%
EPS beat(12)11
Avg EPS beat(12)14.69%
EPS beat(16)15
Avg EPS beat(16)13.88%
Revenue beat(2)2
Avg Revenue beat(2)10.34%
Min Revenue beat(2)4.03%
Max Revenue beat(2)16.64%
Revenue beat(4)4
Avg Revenue beat(4)67.16%
Min Revenue beat(4)4.03%
Max Revenue beat(4)231.03%
Revenue beat(8)7
Avg Revenue beat(8)38.96%
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)2.63%
PT rev (3m)2.63%
EPS NQ rev (1m)10.35%
EPS NQ rev (3m)10.35%
EPS NY rev (1m)2.32%
EPS NY rev (3m)2.32%
Revenue NQ rev (1m)10.01%
Revenue NQ rev (3m)10.01%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)2.93%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 10.99
P/FCF N/A
P/OCF N/A
P/B 9.73
P/tB 10.38
EV/EBITDA N/A
EPS(TTM)-1.79
EYN/A
EPS(NY)-0.85
Fwd EYN/A
FCF(TTM)-1.43
FCFYN/A
OCF(TTM)-1.43
OCFYN/A
SpS1.19
BVpS1.34
TBVpS1.25
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -44.71%
ROE -124.83%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 89.57%
FCFM N/A
ROA(3y)-65.56%
ROA(5y)-56.28%
ROE(3y)-171.19%
ROE(5y)-121.02%
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 Turnover0.32
Health
Industry RankSector Rank
Debt/Equity 0.67
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 5.96%
Cap/Sales 0.11%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.46
Quick Ratio 2.38
Altman-Z -0.67
F-Score4
WACC10.04%
ROIC/WACCN/A
Cap/Depr(3y)917.86%
Cap/Depr(5y)689.77%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)59.13%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%54.79%
EPS Next Y65.59%
EPS Next 2Y33.58%
EPS Next 3Y26.28%
EPS Next 5Y21.11%
Revenue 1Y (TTM)182.85%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%17.44%
Revenue Next Year222.23%
Revenue Next 2Y123.95%
Revenue Next 3Y94.45%
Revenue Next 5Y65.29%
EBIT growth 1Y26.74%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year39.83%
EBIT Next 3Y22.57%
EBIT Next 5Y23.89%
FCF growth 1Y35.9%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y29.66%
OCF growth 3YN/A
OCF growth 5YN/A