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TARSUS PHARMACEUTICALS INC (TARS) Stock Fundamental Analysis

NASDAQ:TARS - Nasdaq - US87650L1035 - Common Stock - Currency: USD

44.94  +1.24 (+2.84%)

Fundamental Rating

4

Overall TARS gets a fundamental rating of 4 out of 10. We evaluated TARS against 198 industry peers in the Pharmaceuticals industry. While TARS seems to be doing ok healthwise, there are quite some concerns on its profitability. TARS is valued quite expensive, but it does show an excellent growth.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

TARS had negative earnings in the past year.
In the past year TARS has reported a negative cash flow from operations.
In the past 5 years TARS always reported negative net income.
TARS had negative operating cash flow in 4 of the past 5 years.
TARS Yearly Net Income VS EBIT VS OCF VS FCFTARS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 2024 0 -50M -100M

1.2 Ratios

The Return On Assets of TARS (-20.96%) is better than 60.61% of its industry peers.
TARS has a Return On Equity of -30.64%. This is in the better half of the industry: TARS outperforms 62.63% of its industry peers.
Industry RankSector Rank
ROA -20.96%
ROE -30.64%
ROIC N/A
ROA(3y)-36.36%
ROA(5y)-26.48%
ROE(3y)-50.88%
ROE(5y)-35.42%
ROIC(3y)N/A
ROIC(5y)N/A
TARS Yearly ROA, ROE, ROICTARS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 2024 -20 -40 -60

1.3 Margins

Looking at the Gross Margin, with a value of 92.99%, TARS belongs to the top of the industry, outperforming 96.46% of the companies in the same industry.
In the last couple of years the Gross Margin of TARS has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for TARS so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 92.99%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.18%
GM growth 5YN/A
TARS Yearly Profit, Operating, Gross MarginsTARS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 0 -200 -400 -600 -800

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5

2. Health

2.1 Basic Checks

TARS does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, TARS has more shares outstanding
Compared to 5 years ago, TARS has more shares outstanding
Compared to 1 year ago, TARS has a worse debt to assets ratio.
TARS Yearly Shares OutstandingTARS Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
TARS Yearly Total Debt VS Total AssetsTARS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

2.2 Solvency

TARS has an Altman-Z score of 6.57. This indicates that TARS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TARS (6.57) is better than 84.34% of its industry peers.
TARS has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.21, TARS perfoms like the industry average, outperforming 46.46% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.21
Debt/FCF N/A
Altman-Z 6.57
ROIC/WACCN/A
WACC9.98%
TARS Yearly LT Debt VS Equity VS FCFTARS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M

2.3 Liquidity

TARS has a Current Ratio of 5.57. This indicates that TARS is financially healthy and has no problem in meeting its short term obligations.
TARS has a better Current ratio (5.57) than 74.75% of its industry peers.
A Quick Ratio of 5.54 indicates that TARS has no problem at all paying its short term obligations.
With a decent Quick ratio value of 5.54, TARS is doing good in the industry, outperforming 75.25% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 5.57
Quick Ratio 5.54
TARS Yearly Current Assets VS Current LiabilitesTARS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

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7

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 42.77% over the past year.
Looking at the last year, TARS shows a very strong growth in Revenue. The Revenue has grown by 449.05%.
TARS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 47.48% yearly.
EPS 1Y (TTM)42.77%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%36.63%
Revenue 1Y (TTM)449.05%
Revenue growth 3Y47.48%
Revenue growth 5YN/A
Sales Q2Q%183.68%

3.2 Future

Based on estimates for the next years, TARS will show a very strong growth in Earnings Per Share. The EPS will grow by 33.50% on average per year.
TARS is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 41.10% yearly.
EPS Next Y60.14%
EPS Next 2Y61.24%
EPS Next 3Y53.83%
EPS Next 5Y33.5%
Revenue Next Year125.34%
Revenue Next 2Y84.34%
Revenue Next 3Y65.67%
Revenue Next 5Y41.1%

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
TARS Yearly Revenue VS EstimatesTARS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 500M 1B
TARS Yearly EPS VS EstimatesTARS Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 2 -2 4 -4 6

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3

4. Valuation

4.1 Price/Earnings Ratio

TARS reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 24.17, TARS is valued on the expensive side.
TARS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TARS is cheaper than 75.25% of the companies in the same industry.
TARS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.50, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 24.17
TARS Price Earnings VS Forward Price EarningsTARS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 -10 20

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
TARS Per share dataTARS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 6 8

4.3 Compensation for Growth

TARS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as TARS's earnings are expected to grow with 53.83% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y61.24%
EPS Next 3Y53.83%

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0

5. Dividend

5.1 Amount

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

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TARSUS PHARMACEUTICALS INC

NASDAQ:TARS (5/19/2025, 3:48:31 PM)

44.94

+1.24 (+2.84%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)05-01 2025-05-01/amc
Earnings (Next)08-06 2025-08-06/amc
Inst Owners102.92%
Inst Owner Change5.22%
Ins Owners3.37%
Ins Owner Change0.95%
Market Cap1.89B
Analysts87.14
Price Target72.27 (60.81%)
Short Float %22.73%
Short Ratio12.09
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)17.45%
Min EPS beat(2)14.11%
Max EPS beat(2)20.78%
EPS beat(4)4
Avg EPS beat(4)20.01%
Min EPS beat(4)6.62%
Max EPS beat(4)38.51%
EPS beat(8)7
Avg EPS beat(8)13.17%
EPS beat(12)11
Avg EPS beat(12)18.33%
EPS beat(16)13
Avg EPS beat(16)19.65%
Revenue beat(2)2
Avg Revenue beat(2)8.8%
Min Revenue beat(2)5.98%
Max Revenue beat(2)11.62%
Revenue beat(4)4
Avg Revenue beat(4)13.14%
Min Revenue beat(4)5.98%
Max Revenue beat(4)26.37%
Revenue beat(8)7
Avg Revenue beat(8)61.6%
Revenue beat(12)8
Avg Revenue beat(12)32.04%
Revenue beat(16)9
Avg Revenue beat(16)32.06%
PT rev (1m)3.12%
PT rev (3m)5.95%
EPS NQ rev (1m)11.49%
EPS NQ rev (3m)33.31%
EPS NY rev (1m)21.22%
EPS NY rev (3m)35.34%
Revenue NQ rev (1m)8.58%
Revenue NQ rev (3m)27.4%
Revenue NY rev (1m)11.23%
Revenue NY rev (3m)21.26%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 24.17
P/S 8.08
P/FCF N/A
P/OCF N/A
P/B 5.51
P/tB 5.65
EV/EBITDA N/A
EPS(TTM)-2.73
EYN/A
EPS(NY)1.86
Fwd EY4.14%
FCF(TTM)-1.73
FCFYN/A
OCF(TTM)-1.57
OCFYN/A
SpS5.56
BVpS8.15
TBVpS7.96
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -20.96%
ROE -30.64%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 92.99%
FCFM N/A
ROA(3y)-36.36%
ROA(5y)-26.48%
ROE(3y)-50.88%
ROE(5y)-35.42%
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 3Y-1.18%
GM growth 5YN/A
F-Score4
Asset Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 0.21
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 493.5%
Cap/Sales 2.99%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 5.57
Quick Ratio 5.54
Altman-Z 6.57
F-Score4
WACC9.98%
ROIC/WACCN/A
Cap/Depr(3y)439.33%
Cap/Depr(5y)393.66%
Cap/Sales(3y)12.37%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)42.77%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%36.63%
EPS Next Y60.14%
EPS Next 2Y61.24%
EPS Next 3Y53.83%
EPS Next 5Y33.5%
Revenue 1Y (TTM)449.05%
Revenue growth 3Y47.48%
Revenue growth 5YN/A
Sales Q2Q%183.68%
Revenue Next Year125.34%
Revenue Next 2Y84.34%
Revenue Next 3Y65.67%
Revenue Next 5Y41.1%
EBIT growth 1Y29.97%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year45.95%
EBIT Next 3Y48.86%
EBIT Next 5Y22.13%
FCF growth 1Y-29.21%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-18.27%
OCF growth 3YN/A
OCF growth 5YN/A