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ARCUTIS BIOTHERAPEUTICS INC (ARQT) Stock Fundamental Analysis

USA - NASDAQ:ARQT - US03969K1088 - Common Stock

17.75 USD
+0.15 (+0.85%)
Last: 9/24/2025, 9:43:56 AM
Fundamental Rating

3

Taking everything into account, ARQT scores 3 out of 10 in our fundamental rating. ARQT was compared to 538 industry peers in the Biotechnology industry. Both the profitability and financial health of ARQT have multiple concerns. ARQT is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

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.
ARQT had negative earnings in each of the past 5 years.
In the past 5 years ARQT always reported negative operating cash flow.
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 -26.46%, ARQT is in the better half of the industry, outperforming 71.00% of the companies in the same industry.
ARQT's Return On Equity of -67.11% is in line compared to the rest of the industry. ARQT outperforms 57.81% of its industry peers.
Industry RankSector Rank
ROA -26.46%
ROE -67.11%
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

ARQT has a Gross Margin of 89.10%. This is amongst the best in the industry. ARQT outperforms 90.52% of its industry peers.
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 89.1%
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.
Compared to 1 year ago, ARQT has more shares outstanding
Compared to 5 years ago, ARQT has more shares outstanding
ARQT has a better debt/assets ratio than last year.
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 2.04. This is not the best score and indicates that ARQT is in the grey zone with still only limited risk for bankruptcy at the moment.
ARQT has a Altman-Z score of 2.04. This is in the better half of the industry: ARQT outperforms 67.29% of its industry peers.
A Debt/Equity ratio of 0.77 indicates that ARQT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.77, ARQT is doing worse than 74.16% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.77
Debt/FCF N/A
Altman-Z 2.04
ROIC/WACCN/A
WACC10.27%
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

ARQT has a Current Ratio of 3.20. This indicates that ARQT is financially healthy and has no problem in meeting its short term obligations.
ARQT has a worse Current ratio (3.20) than 61.90% of its industry peers.
ARQT has a Quick Ratio of 3.04. This indicates that ARQT is financially healthy and has no problem in meeting its short term obligations.
With a Quick ratio value of 3.04, ARQT is not doing good in the industry: 60.97% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 3.2
Quick Ratio 3.04
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

The Earnings Per Share has grown by an impressive 65.75% over the past year.
Looking at the last year, ARQT shows a very strong growth in Revenue. The Revenue has grown by 99.50%.
EPS 1Y (TTM)65.75%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%69.05%
Revenue 1Y (TTM)99.5%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%164.13%

3.2 Future

ARQT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 34.49% yearly.
The Revenue is expected to grow by 36.61% on average over the next years. This is a very strong growth
EPS Next Y59.58%
EPS Next 2Y45.26%
EPS Next 3Y41.59%
EPS Next 5Y34.49%
Revenue Next Year79.18%
Revenue Next 2Y53.61%
Revenue Next 3Y46.87%
Revenue Next 5Y36.61%

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 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 0 -10 -20

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2

4. Valuation

4.1 Price/Earnings Ratio

ARQT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 139.06, ARQT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARQT indicates a rather cheap valuation: ARQT is cheaper than 86.99% of the companies listed in the same industry.
ARQT is valuated expensively when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 139.06
ARQT Price Earnings VS Forward Price EarningsARQT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 50 100

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 1.5 2

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ARQT does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as ARQT's earnings are expected to grow with 41.59% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y45.26%
EPS Next 3Y41.59%

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0

5. Dividend

5.1 Amount

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

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ARCUTIS BIOTHERAPEUTICS INC

NASDAQ:ARQT (9/24/2025, 9:43:56 AM)

17.75

+0.15 (+0.85%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)08-06 2025-08-06/amc
Earnings (Next)11-04 2025-11-04
Inst Owners101.47%
Inst Owner Change1.31%
Ins Owners1.79%
Ins Owner Change-0.37%
Market Cap2.13B
Analysts82.86
Price Target23.21 (30.76%)
Short Float %15.84%
Short Ratio10.28
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)13.02%
Min EPS beat(2)6.63%
Max EPS beat(2)19.41%
EPS beat(4)4
Avg EPS beat(4)28.47%
Min EPS beat(4)6.63%
Max EPS beat(4)65.4%
EPS beat(8)8
Avg EPS beat(8)27.08%
EPS beat(12)11
Avg EPS beat(12)19.45%
EPS beat(16)15
Avg EPS beat(16)16.92%
Revenue beat(2)2
Avg Revenue beat(2)6.07%
Min Revenue beat(2)3.7%
Max Revenue beat(2)8.44%
Revenue beat(4)4
Avg Revenue beat(4)11.27%
Min Revenue beat(4)3.7%
Max Revenue beat(4)16.64%
Revenue beat(8)8
Avg Revenue beat(8)38.86%
Revenue beat(12)11
Avg Revenue beat(12)29.19%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)7.06%
PT rev (3m)7.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)20.09%
EPS NY rev (1m)0%
EPS NY rev (3m)18.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)7.02%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 139.06
P/S 8.08
P/FCF N/A
P/OCF N/A
P/B 15.32
P/tB 17.3
EV/EBITDA N/A
EPS(TTM)-0.75
EYN/A
EPS(NY)0.13
Fwd EY0.72%
FCF(TTM)-0.68
FCFYN/A
OCF(TTM)-0.55
OCFYN/A
SpS2.2
BVpS1.16
TBVpS1.03
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -26.46%
ROE -67.11%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 89.1%
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 Turnover0.75
Health
Industry RankSector Rank
Debt/Equity 0.77
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 291.4%
Cap/Sales 6.01%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 3.2
Quick Ratio 3.04
Altman-Z 2.04
F-Score4
WACC10.27%
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)65.75%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%69.05%
EPS Next Y59.58%
EPS Next 2Y45.26%
EPS Next 3Y41.59%
EPS Next 5Y34.49%
Revenue 1Y (TTM)99.5%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%164.13%
Revenue Next Year79.18%
Revenue Next 2Y53.61%
Revenue Next 3Y46.87%
Revenue Next 5Y36.61%
EBIT growth 1Y52.25%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year72.55%
EBIT Next 3Y37.43%
EBIT Next 5Y32.75%
FCF growth 1Y73.69%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y77.07%
OCF growth 3YN/A
OCF growth 5YN/A