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TARSUS PHARMACEUTICALS INC (TARS) Stock Fundamental Analysis

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

41.15  +0.7 (+1.73%)

After market: 41.15 0 (0%)

Fundamental Rating

4

TARS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 195 industry peers in the Pharmaceuticals industry. The financial health of TARS is average, but there are quite some concerns on its profitability. TARS shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year TARS has reported negative net income.
TARS had a negative operating cash flow in the past year.
TARS had negative earnings in each of the past 5 years.
In the past 5 years TARS reported 4 times negative operating cash flow.
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

TARS has a Return On Assets of -20.96%. This is comparable to the rest of the industry: TARS outperforms 60.00% of its industry peers.
With a decent Return On Equity value of -30.64%, TARS is doing good in the industry, outperforming 63.08% of the companies in the same industry.
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

The Gross Margin of TARS (92.99%) is better than 96.41% of its industry peers.
In the last couple of years the Gross Margin of TARS has remained more or less at the same level.
TARS 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 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
TARS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TARS is higher compared to a year ago.
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 6.06. This indicates that TARS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TARS (6.06) is better than 82.56% 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.
TARS's Debt to Equity ratio of 0.21 is in line compared to the rest of the industry. TARS outperforms 43.59% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.21
Debt/FCF N/A
Altman-Z 6.06
ROIC/WACCN/A
WACC9.94%
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

A Current Ratio of 5.57 indicates that TARS has no problem at all paying its short term obligations.
With a decent Current ratio value of 5.57, TARS is doing good in the industry, outperforming 74.36% of the companies in the same industry.
TARS has a Quick Ratio of 5.54. This indicates that TARS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 5.54, TARS is in the better half of the industry, outperforming 74.87% 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.
The Revenue has grown by 449.05% in the past year. This is a very strong growth!
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

TARS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.05% yearly.
TARS is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 40.77% yearly.
EPS Next Y60.97%
EPS Next 2Y61.86%
EPS Next 3Y50.64%
EPS Next 5Y18.05%
Revenue Next Year128.77%
Revenue Next 2Y81.59%
Revenue Next 3Y65.38%
Revenue Next 5Y40.77%

3.3 Evolution

The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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 2031 2032 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.
The Price/Forward Earnings ratio is 21.42, which indicates a rather expensive current valuation of TARS.
TARS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TARS is cheaper than 72.31% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, TARS is valued at the same level.
Industry RankSector Rank
PE N/A
Fwd PE 21.42
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.
TARS's earnings are expected to grow with 50.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y61.86%
EPS Next 3Y50.64%

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0

5. Dividend

5.1 Amount

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

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TARSUS PHARMACEUTICALS INC

NASDAQ:TARS (7/3/2025, 5:00:01 PM)

After market: 41.15 0 (0%)

41.15

+0.7 (+1.73%)

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 Owners101.37%
Inst Owner Change5.22%
Ins Owners3.31%
Ins Owner Change1.13%
Market Cap1.73B
Analysts87.14
Price Target72.57 (76.35%)
Short Float %21.04%
Short Ratio12.29
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)0.4%
PT rev (3m)5.99%
EPS NQ rev (1m)4.79%
EPS NQ rev (3m)23.28%
EPS NY rev (1m)2.08%
EPS NY rev (3m)36.69%
Revenue NQ rev (1m)1.55%
Revenue NQ rev (3m)12.61%
Revenue NY rev (1m)1.53%
Revenue NY rev (3m)16.76%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 21.42
P/S 7.4
P/FCF N/A
P/OCF N/A
P/B 5.05
P/tB 5.17
EV/EBITDA N/A
EPS(TTM)-2.73
EYN/A
EPS(NY)1.92
Fwd EY4.67%
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 6.06
F-Score4
WACC9.94%
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 Y60.97%
EPS Next 2Y61.86%
EPS Next 3Y50.64%
EPS Next 5Y18.05%
Revenue 1Y (TTM)449.05%
Revenue growth 3Y47.48%
Revenue growth 5YN/A
Sales Q2Q%183.68%
Revenue Next Year128.77%
Revenue Next 2Y81.59%
Revenue Next 3Y65.38%
Revenue Next 5Y40.77%
EBIT growth 1Y29.97%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year75.89%
EBIT Next 3Y59.31%
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