Arcutis Biotherapeutics, Inc. Fundamental Analysis (NASDAQ: ARQT)
Arcutis Biotherapeutics, Inc. (NASDAQ: ARQT) shows moderate financial fundamentals with a PE ratio of 119.61, profit margin of 6.15%, and ROE of 15.05%. The company generates $0.4B in annual revenue with strong year-over-year growth of 91.34%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ARQT's fundamental strength across five key dimensions:
Efficiency Score
WeakARQT struggles to generate sufficient returns from assets.
Valuation Score
ModerateARQT shows balanced valuation metrics.
Growth Score
ExcellentARQT delivers strong and consistent growth momentum.
Financial Health Score
ExcellentARQT maintains a strong and stable balance sheet.
Profitability Score
ModerateARQT maintains healthy but balanced margins.
Key Financial Metrics
Is ARQT Expensive or Cheap?
P/E Ratio
ARQT trades at 119.61 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ARQT's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values Arcutis Biotherapeutics, Inc. at 15.63 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 74.56 times EBITDA. This signals the market has high growth expectations.
How Well Does ARQT Make Money?
Net Profit Margin
For every $100 in sales, Arcutis Biotherapeutics, Inc. keeps $6.15 as profit after all expenses.
Operating Margin
Core operations generate 7.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.05 in profit for every $100 of shareholder equity.
ROA
Arcutis Biotherapeutics, Inc. generates $5.84 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Arcutis Biotherapeutics, Inc. generates limited operating cash flow of $37.84M, signaling weaker underlying cash strength.
Free Cash Flow
Arcutis Biotherapeutics, Inc. produces free cash flow of $37.69M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.30 in free cash annually.
FCF Yield
ARQT converts 1.18% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
119.61
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
15.63
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.52
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.92
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How ARQT Stacks Against Its Sector Peers
| Metric | ARQT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 119.61 | 30.55 | Worse (Expensive) |
| ROE | 15.05% | 574.00% | Weak |
| Net Margin | 6.15% | 7255.00% | Weak |
| Debt/Equity | 0.52 | 0.51 | Neutral |
| Current Ratio | 2.92 | 5.76 | Strong Liquidity |
| ROA | 5.84% | -50.00% (disorted) | Weak |
ARQT outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Arcutis Biotherapeutics, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.00%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
96.66%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
98.60%
Industry Style: Defensive, Growth, Innovation
High Growth