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ARCUTIS BIOTHERAPEUTICS INC (ARQT) Stock Fundamental Analysis

NASDAQ:ARQT - US03969K1088 - Common Stock

15.49 USD
-0.16 (-1.02%)
Last: 8/28/2025, 8:00:00 PM
15.3595 USD
-0.13 (-0.84%)
Pre-Market: 8/29/2025, 9:03:45 AM
Fundamental Rating

3

Taking everything into account, ARQT scores 3 out of 10 in our fundamental rating. ARQT was compared to 547 industry peers in the Biotechnology industry. ARQT may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, ARQT is valued expensive at the moment.


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.
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 -26.46%, ARQT is in the better half of the industry, outperforming 71.85% of the companies in the same industry.
ARQT has a Return On Equity (-67.11%) which is in line with 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

The Gross Margin of ARQT (89.10%) is better than 90.86% 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.
The number of shares outstanding for ARQT has been increased compared to 1 year ago.
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 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 1.32. This is a bad value and indicates that ARQT is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ARQT (1.32) is better than 65.45% of its industry peers.
ARQT has a Debt/Equity ratio of 0.77. This is a neutral value indicating ARQT is somewhat dependend on debt financing.
ARQT has a worse Debt to Equity ratio (0.77) than 74.22% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.77
Debt/FCF N/A
Altman-Z 1.32
ROIC/WACCN/A
WACC10.16%
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.
With a Current ratio value of 3.20, ARQT is not doing good in the industry: 61.61% of the companies in the same industry are doing better.
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: 60.88% 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

ARQT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 65.75%, which is quite impressive.
ARQT shows a strong growth in Revenue. In the last year, 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

Based on estimates for the next years, ARQT will show a very strong growth in Earnings Per Share. The EPS will grow by 34.49% on average per year.
Based on estimates for the next years, ARQT will show a very strong growth in Revenue. The Revenue will grow by 36.61% on average per year.
EPS Next Y59.58%
EPS Next 2Y45.26%
EPS Next 3Y41.59%
EPS Next 5Y34.49%
Revenue Next Year79.18%
Revenue Next 2Y53.79%
Revenue Next 3Y46.99%
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

The Price/Earnings Ratio is negative for ARQT. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 121.35 indicates a quite expensive valuation of ARQT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARQT indicates a rather cheap valuation: ARQT is cheaper than 87.93% of the companies listed in the same industry.
ARQT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.78.
Industry RankSector Rank
PE N/A
Fwd PE 121.35
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.
ARQT's earnings are expected to grow with 41.59% in the coming years. This may justify a more expensive valuation.
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 (8/28/2025, 8:00:00 PM)

Premarket: 15.3595 -0.13 (-0.84%)

15.49

-0.16 (-1.02%)

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 Change1.71%
Market Cap1.86B
Analysts82.86
Price Target23.21 (49.84%)
Short Float %15.44%
Short Ratio8.96
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)6.88%
PT rev (3m)8.33%
EPS NQ rev (1m)13.2%
EPS NQ rev (3m)25.13%
EPS NY rev (1m)17.19%
EPS NY rev (3m)18.03%
Revenue NQ rev (1m)6.66%
Revenue NQ rev (3m)10.75%
Revenue NY rev (1m)7.11%
Revenue NY rev (3m)7.02%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 121.35
P/S 7.05
P/FCF N/A
P/OCF N/A
P/B 13.37
P/tB 15.1
EV/EBITDA N/A
EPS(TTM)-0.75
EYN/A
EPS(NY)0.13
Fwd EY0.82%
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 1.32
F-Score4
WACC10.16%
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 2Y53.79%
Revenue Next 3Y46.99%
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