ARCUTIS BIOTHERAPEUTICS INC (ARQT) Fundamental Analysis & Valuation

NASDAQ:ARQT • US03969K1088

Current stock price

22.75 USD
-0.16 (-0.7%)
At close:
22.75 USD
0 (0%)
After Hours:

This ARQT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. ARQT Profitability Analysis

1.1 Basic Checks

  • In the past year ARQT has reported negative net income.
  • ARQT had a negative operating cash flow in the past year.
  • 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 2025 -100M -200M -300M

1.2 Ratios

  • ARQT has a better Return On Assets (-3.73%) than 85.93% of its industry peers.
  • The Return On Equity of ARQT (-8.52%) is better than 88.25% of its industry peers.
Industry RankSector Rank
ROA -3.73%
ROE -8.52%
ROIC N/A
ROA(3y)-40.22%
ROA(5y)-48.11%
ROE(3y)-131.02%
ROE(5y)-122.19%
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 2025 -50 -100 -150 -200 -250

1.3 Margins

  • Looking at the Gross Margin, with a value of 90.24%, ARQT belongs to the top of the industry, outperforming 91.91% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ARQT has grown nicely.
  • The Profit Margin and Operating Margin are not available for ARQT so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 90.24%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.36%
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 2025 0 -2K -4K -6K -8K

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4

2. ARQT Health Analysis

2.1 Basic Checks

  • ARQT does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • Compared to 1 year ago, ARQT has more shares outstanding
  • Compared to 5 years ago, ARQT has more shares outstanding
  • 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 2025 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 2025 100M 200M 300M 400M

2.2 Solvency

  • An Altman-Z score of 4.88 indicates that ARQT is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 4.88, ARQT is doing good in the industry, outperforming 71.87% of the companies in the same industry.
  • ARQT has a Debt/Equity ratio of 0.57. This is a neutral value indicating ARQT is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.57, ARQT is not doing good in the industry: 70.52% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.57
Debt/FCF N/A
Altman-Z 4.88
ROIC/WACCN/A
WACC8.87%
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 2025 0 100M -100M 200M -200M

2.3 Liquidity

  • A Current Ratio of 3.17 indicates that ARQT has no problem at all paying its short term obligations.
  • With a Current ratio value of 3.17, ARQT is not doing good in the industry: 63.20% of the companies in the same industry are doing better.
  • ARQT has a Quick Ratio of 2.99. This indicates that ARQT is financially healthy and has no problem in meeting its short term obligations.
  • ARQT's Quick ratio of 2.99 is on the low side compared to the rest of the industry. ARQT is outperformed by 62.43% of its industry peers.
Industry RankSector Rank
Current Ratio 3.17
Quick Ratio 2.99
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 2025 100M 200M 300M 400M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. ARQT Growth Analysis

3.1 Past

  • ARQT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 87.93%, which is quite impressive.
  • The Revenue has grown by 91.34% in the past year. This is a very strong growth!
  • The Revenue has been growing by 367.11% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)87.93%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%244.44%
Revenue 1Y (TTM)91.34%
Revenue growth 3Y367.11%
Revenue growth 5YN/A
Sales Q2Q%81.48%

3.2 Future

  • ARQT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 89.60% yearly.
  • ARQT is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.69% yearly.
EPS Next Y328.65%
EPS Next 2Y225.15%
EPS Next 3Y154.72%
EPS Next 5Y89.6%
Revenue Next Year37.71%
Revenue Next 2Y33.68%
Revenue Next 3Y29.56%
Revenue Next 5Y23.69%

3.3 Evolution

  • Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
ARQT Yearly Revenue VS EstimatesARQT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 200M 400M 600M 800M 1B
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 2033 0 -10 -20

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3

4. ARQT Valuation Analysis

4.1 Price/Earnings Ratio

  • ARQT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
  • ARQT is valuated quite expensively with a Price/Forward Earnings ratio of 71.07.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ARQT indicates a rather cheap valuation: ARQT is cheaper than 89.60% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of ARQT to the average of the S&P500 Index (23.84), we can say ARQT is valued expensively.
Industry RankSector Rank
PE N/A
Fwd PE 71.07
ARQT Price Earnings VS Forward Price EarningsARQT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 50 -50 -100 -150

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 2 3

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • ARQT's earnings are expected to grow with 154.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y225.15%
EPS Next 3Y154.72%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ARQT Dividend Analysis

5.1 Amount

  • ARQT does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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ARQT Fundamentals: All Metrics, Ratios and Statistics

ARCUTIS BIOTHERAPEUTICS INC

NASDAQ:ARQT (3/13/2026, 8:10:14 PM)

After market: 22.75 0 (0%)

22.75

-0.16 (-0.7%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)02-25
Earnings (Next)05-04
Inst Owners100.42%
Inst Owner Change2.34%
Ins Owners0.72%
Ins Owner Change-1.08%
Market Cap2.82B
Revenue(TTM)376.07M
Net Income(TTM)-16.14M
Analysts82.86
Price Target32.39 (42.37%)
Short Float %14.63%
Short Ratio10.67
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)85.65%
Min EPS beat(2)12.39%
Max EPS beat(2)158.91%
EPS beat(4)4
Avg EPS beat(4)49.33%
Min EPS beat(4)6.63%
Max EPS beat(4)158.91%
EPS beat(8)8
Avg EPS beat(8)45.31%
EPS beat(12)12
Avg EPS beat(12)33.08%
EPS beat(16)15
Avg EPS beat(16)27.01%
Revenue beat(2)2
Avg Revenue beat(2)12.07%
Min Revenue beat(2)11.84%
Max Revenue beat(2)12.3%
Revenue beat(4)4
Avg Revenue beat(4)9.07%
Min Revenue beat(4)3.7%
Max Revenue beat(4)12.3%
Revenue beat(8)8
Avg Revenue beat(8)38.03%
Revenue beat(12)11
Avg Revenue beat(12)27.71%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0.4%
EPS NQ rev (1m)-53.3%
EPS NQ rev (3m)-53.3%
EPS NY rev (1m)-16.09%
EPS NY rev (3m)-14.52%
Revenue NQ rev (1m)3.09%
Revenue NQ rev (3m)3.09%
Revenue NY rev (1m)5.95%
Revenue NY rev (3m)6.08%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 71.07
P/S 7.5
P/FCF N/A
P/OCF N/A
P/B 14.89
P/tB 16.15
EV/EBITDA N/A
EPS(TTM)-0.14
EYN/A
EPS(NY)0.32
Fwd EY1.41%
FCF(TTM)-0.13
FCFYN/A
OCF(TTM)-0.05
OCFYN/A
SpS3.03
BVpS1.53
TBVpS1.41
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA -3.73%
ROE -8.52%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 90.24%
FCFM N/A
ROA(3y)-40.22%
ROA(5y)-48.11%
ROE(3y)-131.02%
ROE(5y)-122.19%
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
ROICexgc growth 3YN/A
ROICexgc 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 3Y4.36%
GM growth 5YN/A
F-Score4
Asset Turnover0.87
Health
Industry RankSector Rank
Debt/Equity 0.57
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 228.97%
Cap/Sales 2.84%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 3.17
Quick Ratio 2.99
Altman-Z 4.88
F-Score4
WACC8.87%
ROIC/WACCN/A
Cap/Depr(3y)151.66%
Cap/Depr(5y)636.09%
Cap/Sales(3y)2.06%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)87.93%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%244.44%
EPS Next Y328.65%
EPS Next 2Y225.15%
EPS Next 3Y154.72%
EPS Next 5Y89.6%
Revenue 1Y (TTM)91.34%
Revenue growth 3Y367.11%
Revenue growth 5YN/A
Sales Q2Q%81.48%
Revenue Next Year37.71%
Revenue Next 2Y33.68%
Revenue Next 3Y29.56%
Revenue Next 5Y23.69%
EBIT growth 1Y90.48%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year587.54%
EBIT Next 3Y165.68%
EBIT Next 5Y88.77%
FCF growth 1Y86.09%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y94.98%
OCF growth 3YN/A
OCF growth 5YN/A

ARCUTIS BIOTHERAPEUTICS INC / ARQT Fundamental Analysis FAQ

What is the ChartMill fundamental rating of ARCUTIS BIOTHERAPEUTICS INC (ARQT) stock?

ChartMill assigns a fundamental rating of 4 / 10 to ARQT.


What is the valuation status for ARQT stock?

ChartMill assigns a valuation rating of 3 / 10 to ARCUTIS BIOTHERAPEUTICS INC (ARQT). This can be considered as Overvalued.


What is the profitability of ARQT stock?

ARCUTIS BIOTHERAPEUTICS INC (ARQT) has a profitability rating of 3 / 10.


Can you provide the expected EPS growth for ARQT stock?

The Earnings per Share (EPS) of ARCUTIS BIOTHERAPEUTICS INC (ARQT) is expected to grow by 328.65% in the next year.