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ARCUTIS BIOTHERAPEUTICS INC (ARQT) Stock Fundamental Analysis

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

13.43  -0.07 (-0.52%)

After market: 13.43 0 (0%)

Fundamental Rating

3

Taking everything into account, ARQT scores 3 out of 10 in our fundamental rating. ARQT was compared to 559 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.
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

ARQT has a Return On Assets of -37.70%. This is comparable to the rest of the industry: ARQT outperforms 58.68% of its industry peers.
ARQT has a Return On Equity of -90.93%. This is comparable to the rest of the industry: ARQT outperforms 47.94% of its industry peers.
Industry RankSector Rank
ROA -37.7%
ROE -90.93%
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 (88.39%) is better than 91.06% of its industry peers.
ARQT 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 88.39%
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

Based on the Altman-Z score of 0.37, 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 0.37, ARQT is in the better half of the industry, outperforming 64.58% of the companies in the same industry.
A Debt/Equity ratio of 0.75 indicates that ARQT is somewhat dependend on debt financing.
ARQT has a worse Debt to Equity ratio (0.75) than 75.31% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.75
Debt/FCF N/A
Altman-Z 0.37
ROIC/WACCN/A
WACC15.6%
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 3.55. This indicates that ARQT is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ARQT (3.55) is comparable to the rest of the industry.
ARQT has a Quick Ratio of 3.37. This indicates that ARQT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.37, ARQT is in line with its industry, outperforming 40.61% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.55
Quick Ratio 3.37
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 64.51% over the past year.
Looking at the last year, ARQT shows a very strong growth in Revenue. The Revenue has grown by 100.03%.
EPS 1Y (TTM)64.51%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%37.5%
Revenue 1Y (TTM)100.03%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%32.84%

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 34.31% on average per year.
ARQT is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 34.57% yearly.
EPS Next Y50.68%
EPS Next 2Y46.29%
EPS Next 3Y45%
EPS Next 5Y34.31%
Revenue Next Year67.43%
Revenue Next 2Y51.99%
Revenue Next 3Y46.38%
Revenue Next 5Y34.57%

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 82.59, 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 88.55% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.13. ARQT is valued rather expensively when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 82.59
ARQT Price Earnings VS Forward Price EarningsARQT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 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

ARQT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ARQT's earnings are expected to grow with 45.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y46.29%
EPS Next 3Y45%

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0

5. Dividend

5.1 Amount

No dividends for ARQT!.
Industry RankSector Rank
Dividend Yield N/A

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ARCUTIS BIOTHERAPEUTICS INC

NASDAQ:ARQT (6/13/2025, 8:00:01 PM)

After market: 13.43 0 (0%)

13.43

-0.07 (-0.52%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)05-06 2025-05-06/amc
Earnings (Next)08-12 2025-08-12
Inst Owners101.3%
Inst Owner Change-2.44%
Ins Owners1.75%
Ins Owner Change1.05%
Market Cap1.60B
Analysts84.62
Price Target21.57 (60.61%)
Short Float %14.87%
Short Ratio7.14
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)36.01%
Min EPS beat(2)6.63%
Max EPS beat(2)65.4%
EPS beat(4)4
Avg EPS beat(4)28.69%
Min EPS beat(4)6.63%
Max EPS beat(4)65.4%
EPS beat(8)8
Avg EPS beat(8)25.78%
EPS beat(12)11
Avg EPS beat(12)18.7%
EPS beat(16)15
Avg EPS beat(16)16.25%
Revenue beat(2)2
Avg Revenue beat(2)10%
Min Revenue beat(2)3.7%
Max Revenue beat(2)16.29%
Revenue beat(4)4
Avg Revenue beat(4)10.17%
Min Revenue beat(4)3.7%
Max Revenue beat(4)16.64%
Revenue beat(8)8
Avg Revenue beat(8)39.13%
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)0.68%
PT rev (3m)6.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.17%
EPS NY rev (1m)0%
EPS NY rev (3m)32.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.9%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 82.59
P/S 7.52
P/FCF N/A
P/OCF N/A
P/B 11.22
P/tB 12.69
EV/EBITDA N/A
EPS(TTM)-1.04
EYN/A
EPS(NY)0.16
Fwd EY1.21%
FCF(TTM)-0.98
FCFYN/A
OCF(TTM)-0.93
OCFYN/A
SpS1.79
BVpS1.2
TBVpS1.06
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -37.7%
ROE -90.93%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 88.39%
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 Turnover0.62
Health
Industry RankSector Rank
Debt/Equity 0.75
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 107.04%
Cap/Sales 2.7%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 3.55
Quick Ratio 3.37
Altman-Z 0.37
F-Score4
WACC15.6%
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)64.51%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%37.5%
EPS Next Y50.68%
EPS Next 2Y46.29%
EPS Next 3Y45%
EPS Next 5Y34.31%
Revenue 1Y (TTM)100.03%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%32.84%
Revenue Next Year67.43%
Revenue Next 2Y51.99%
Revenue Next 3Y46.38%
Revenue Next 5Y34.57%
EBIT growth 1Y38.25%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year58.47%
EBIT Next 3Y34.85%
EBIT Next 5Y32.75%
FCF growth 1Y61.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y60.53%
OCF growth 3YN/A
OCF growth 5YN/A