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TEMPUS AI INC (TEM) Stock Fundamental Analysis

NASDAQ:TEM - Nasdaq - US88023B1035 - Common Stock - Currency: USD

49.55  +6.32 (+14.62%)

Premarket: 50.55 +1 (+2.02%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to TEM. TEM was compared to 55 industry peers in the Life Sciences Tools & Services industry. While TEM seems to be doing ok healthwise, there are quite some concerns on its profitability. TEM is valued quite expensive, but it does show an excellent growth.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

TEM had negative earnings in the past year.
In the past year TEM has reported a negative cash flow from operations.
In the past 5 years TEM always reported negative net income.
TEM had a negative operating cash flow in each of the past 5 years.
TEM Yearly Net Income VS EBIT VS OCF VS FCFTEM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 -200M -400M -600M

1.2 Ratios

TEM's Return On Assets of -80.59% is on the low side compared to the rest of the industry. TEM is outperformed by 90.91% of its industry peers.
TEM has a Return On Equity of -1324.71%. This is amonst the worse of the industry: TEM underperforms 94.55% of its industry peers.
Industry RankSector Rank
ROA -80.59%
ROE -1324.71%
ROIC N/A
ROA(3y)-60.21%
ROA(5y)-54.09%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
TEM Yearly ROA, ROE, ROICTEM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 0 -500 -1K

1.3 Margins

TEM has a better Gross Margin (54.96%) than 69.09% of its industry peers.
In the last couple of years the Gross Margin of TEM has grown nicely.
TEM 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 54.96%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y19.22%
GM growth 5Y16.28%
TEM Yearly Profit, Operating, Gross MarginsTEM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 0 50 -50 -100 -150 -200

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4

2. Health

2.1 Basic Checks

TEM does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for TEM has been reduced compared to 1 year ago.
The number of shares outstanding for TEM has been reduced compared to 5 years ago.
TEM has a better debt/assets ratio than last year.
TEM Yearly Shares OutstandingTEM Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 50M 100M 150M
TEM Yearly Total Debt VS Total AssetsTEM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

2.2 Solvency

Based on the Altman-Z score of 1.44, we must say that TEM is in the distress zone and has some risk of bankruptcy.
TEM has a Altman-Z score (1.44) which is in line with its industry peers.
A Debt/Equity ratio of 7.73 is on the high side and indicates that TEM has dependencies on debt financing.
TEM's Debt to Equity ratio of 7.73 is on the low side compared to the rest of the industry. TEM is outperformed by 92.73% of its industry peers.
Industry RankSector Rank
Debt/Equity 7.73
Debt/FCF N/A
Altman-Z 1.44
ROIC/WACCN/A
WACC10.56%
TEM Yearly LT Debt VS Equity VS FCFTEM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 0 200M -200M 400M

2.3 Liquidity

TEM has a Current Ratio of 2.29. This indicates that TEM is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.29, TEM is in line with its industry, outperforming 41.82% of the companies in the same industry.
A Quick Ratio of 2.16 indicates that TEM has no problem at all paying its short term obligations.
With a Quick ratio value of 2.16, TEM perfoms like the industry average, outperforming 49.09% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.29
Quick Ratio 2.16
TEM Yearly Current Assets VS Current LiabilitesTEM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 200M 400M 600M

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7

3. Growth

3.1 Past

The earnings per share for TEM have decreased strongly by -391.23% in the last year.
TEM shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.38%.
Measured over the past years, TEM shows a very strong growth in Revenue. The Revenue has been growing by 62.05% on average per year.
EPS 1Y (TTM)-391.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%80.98%
Revenue 1Y (TTM)30.38%
Revenue growth 3Y39.06%
Revenue growth 5Y62.05%
Sales Q2Q%35.85%

3.2 Future

Based on estimates for the next years, TEM will show a very strong growth in Earnings Per Share. The EPS will grow by 33.00% on average per year.
Based on estimates for the next years, TEM will show a very strong growth in Revenue. The Revenue will grow by 40.37% on average per year.
EPS Next Y75.85%
EPS Next 2Y43.86%
EPS Next 3Y33%
EPS Next 5YN/A
Revenue Next Year75.04%
Revenue Next 2Y47.88%
Revenue Next 3Y40.37%
Revenue Next 5YN/A

3.3 Evolution

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
TEM Yearly Revenue VS EstimatesTEM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B
TEM Yearly EPS VS EstimatesTEM Yearly EPS VS EstimatesYearly EPS VS Estimates 2024 2025 2026 2027 0 -1 -2 -3

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1

4. Valuation

4.1 Price/Earnings Ratio

TEM reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for TEM. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A
TEM Price Earnings VS Forward Price EarningsTEM 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
TEM Per share dataTEM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4

4.3 Compensation for Growth

A more expensive valuation may be justified as TEM's earnings are expected to grow with 33.00% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y43.86%
EPS Next 3Y33%

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0

5. Dividend

5.1 Amount

TEM does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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TEMPUS AI INC

NASDAQ:TEM (4/23/2025, 8:00:01 PM)

Premarket: 50.55 +1 (+2.02%)

49.55

+6.32 (+14.62%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)02-24 2025-02-24/amc
Earnings (Next)N/A N/A
Inst Owners37.35%
Inst Owner Change0.25%
Ins Owners7.86%
Ins Owner Change-8.71%
Market Cap8.57B
Analysts73.33
Price Target66.68 (34.57%)
Short Float %16.23%
Short Ratio1.02
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)15.8%
Min EPS beat(2)11.44%
Max EPS beat(2)20.15%
EPS beat(4)3
Avg EPS beat(4)-9.23%
Min EPS beat(4)-120.52%
Max EPS beat(4)52.02%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.2%
Min Revenue beat(2)-2.18%
Max Revenue beat(2)-0.22%
Revenue beat(4)1
Avg Revenue beat(4)-0.29%
Min Revenue beat(4)-2.18%
Max Revenue beat(4)2.21%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)-0.95%
PT rev (3m)9.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.69%
EPS NY rev (1m)10.2%
EPS NY rev (3m)14.18%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)25.24%
Revenue NY rev (1m)-1.44%
Revenue NY rev (3m)25.69%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 12.36
P/FCF N/A
P/OCF N/A
P/B 152.18
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-2.53
EYN/A
EPS(NY)-0.61
Fwd EYN/A
FCF(TTM)-1.22
FCFYN/A
OCF(TTM)-1.09
OCFYN/A
SpS4.01
BVpS0.33
TBVpS-0.17
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -80.59%
ROE -1324.71%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 54.96%
FCFM N/A
ROA(3y)-60.21%
ROA(5y)-54.09%
ROE(3y)N/A
ROE(5y)N/A
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 3Y19.22%
GM growth 5Y16.28%
F-Score4
Asset Turnover0.75
Health
Industry RankSector Rank
Debt/Equity 7.73
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 59.39%
Cap/Sales 3.19%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.29
Quick Ratio 2.16
Altman-Z 1.44
F-Score4
WACC10.56%
ROIC/WACCN/A
Cap/Depr(3y)74.55%
Cap/Depr(5y)66.22%
Cap/Sales(3y)5.14%
Cap/Sales(5y)5.43%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-391.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%80.98%
EPS Next Y75.85%
EPS Next 2Y43.86%
EPS Next 3Y33%
EPS Next 5YN/A
Revenue 1Y (TTM)30.38%
Revenue growth 3Y39.06%
Revenue growth 5Y62.05%
Sales Q2Q%35.85%
Revenue Next Year75.04%
Revenue Next 2Y47.88%
Revenue Next 3Y40.37%
Revenue Next 5YN/A
EBIT growth 1Y-252.44%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year102.61%
EBIT Next 3Y47.73%
EBIT Next 5YN/A
FCF growth 1Y15.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y11.8%
OCF growth 3YN/A
OCF growth 5YN/A