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ARCUTIS BIOTHERAPEUTICS INC (ARQT) Stock Fundamental Analysis

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

14.65  -0.26 (-1.74%)

After market: 14.6 -0.05 (-0.34%)

Fundamental Rating

2

ARQT gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 566 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.
In the past year ARQT has reported a negative cash flow from operations.
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

With a Return On Assets value of -40.14%, ARQT perfoms like the industry average, outperforming 56.18% of the companies in the same industry.
ARQT's Return On Equity of -88.89% is in line compared to the rest of the industry. ARQT outperforms 49.12% of its industry peers.
Industry RankSector Rank
ROA -40.14%
ROE -88.89%
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 90.27%. This is amongst the best in the industry. ARQT outperforms 91.87% 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 90.27%
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
ARQT has more shares outstanding than it did 5 years ago.
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

Based on the Altman-Z score of 1.27, we must say that ARQT is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.27, ARQT is in the better half of the industry, outperforming 69.08% of the companies in the same industry.
ARQT has a Debt/Equity ratio of 0.68. This is a neutral value indicating ARQT is somewhat dependend on debt financing.
ARQT's Debt to Equity ratio of 0.68 is on the low side compared to the rest of the industry. ARQT is outperformed by 76.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.68
Debt/FCF N/A
Altman-Z 1.27
ROIC/WACCN/A
WACC10.4%
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

A Current Ratio of 4.15 indicates that ARQT has no problem at all paying its short term obligations.
ARQT has a Current ratio (4.15) which is comparable to the rest of the industry.
A Quick Ratio of 3.97 indicates that ARQT has no problem at all paying its short term obligations.
ARQT's Quick ratio of 3.97 is in line compared to the rest of the industry. ARQT outperforms 49.12% of its industry peers.
Industry RankSector Rank
Current Ratio 4.15
Quick Ratio 3.97
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 70.41%, which is quite impressive.
ARQT shows a strong growth in Revenue. In the last year, the Revenue has grown by 229.74%.
EPS 1Y (TTM)70.41%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%87.5%
Revenue 1Y (TTM)229.74%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%427.58%

3.2 Future

The Earnings Per Share is expected to grow by 35.63% on average over the next years. This is a very strong growth
Based on estimates for the next years, ARQT will show a very strong growth in Revenue. The Revenue will grow by 35.38% on average per year.
EPS Next Y42.96%
EPS Next 2Y48.94%
EPS Next 3Y46.62%
EPS Next 5Y35.63%
Revenue Next Year64.14%
Revenue Next 2Y52.26%
Revenue Next 3Y47.13%
Revenue Next 5Y35.38%

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
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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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for ARQT. In the last year negative earnings were reported.
Also next year ARQT is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
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 -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 0.5 -0.5 1 -1 1.5

4.3 Compensation for Growth

A more expensive valuation may be justified as ARQT's earnings are expected to grow with 46.62% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y48.94%
EPS Next 3Y46.62%

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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 (5/1/2025, 7:24:35 PM)

After market: 14.6 -0.05 (-0.34%)

14.65

-0.26 (-1.74%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)02-25 2025-02-25/amc
Earnings (Next)05-06 2025-05-06
Inst Owners106.65%
Inst Owner Change0.03%
Ins Owners2.04%
Ins Owner Change0.32%
Market Cap1.74B
Analysts82.86
Price Target21.42 (46.21%)
Short Float %13.43%
Short Ratio5.85
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)43.92%
Min EPS beat(2)22.44%
Max EPS beat(2)65.4%
EPS beat(4)4
Avg EPS beat(4)41.29%
Min EPS beat(4)20.28%
Max EPS beat(4)65.4%
EPS beat(8)8
Avg EPS beat(8)24.96%
EPS beat(12)11
Avg EPS beat(12)19.57%
EPS beat(16)15
Avg EPS beat(16)17.22%
Revenue beat(2)2
Avg Revenue beat(2)16.47%
Min Revenue beat(2)16.29%
Max Revenue beat(2)16.64%
Revenue beat(4)4
Avg Revenue beat(4)67%
Min Revenue beat(4)4.03%
Max Revenue beat(4)231.03%
Revenue beat(8)7
Avg Revenue beat(8)37.03%
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)5.66%
PT rev (3m)10.53%
EPS NQ rev (1m)4.7%
EPS NQ rev (3m)39.44%
EPS NY rev (1m)4.18%
EPS NY rev (3m)33.93%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)12.71%
Revenue NY rev (1m)0.88%
Revenue NY rev (3m)7.56%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 8.84
P/FCF N/A
P/OCF N/A
P/B 11.03
P/tB 11.74
EV/EBITDA N/A
EPS(TTM)-1.16
EYN/A
EPS(NY)-0.66
Fwd EYN/A
FCF(TTM)-0.99
FCFYN/A
OCF(TTM)-0.95
OCFYN/A
SpS1.66
BVpS1.33
TBVpS1.25
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -40.14%
ROE -88.89%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 90.27%
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 Turnover0.56
Health
Industry RankSector Rank
Debt/Equity 0.68
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 197.88%
Cap/Sales 2.62%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 4.15
Quick Ratio 3.97
Altman-Z 1.27
F-Score4
WACC10.4%
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)70.41%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%87.5%
EPS Next Y42.96%
EPS Next 2Y48.94%
EPS Next 3Y46.62%
EPS Next 5Y35.63%
Revenue 1Y (TTM)229.74%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%427.58%
Revenue Next Year64.14%
Revenue Next 2Y52.26%
Revenue Next 3Y47.13%
Revenue Next 5Y35.38%
EBIT growth 1Y46.75%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year37.93%
EBIT Next 3Y37.44%
EBIT Next 5Y32.75%
FCF growth 1Y52.6%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y54.6%
OCF growth 3YN/A
OCF growth 5YN/A