Tarsus Pharmaceuticals, Inc. Fundamental Analysis (NASDAQ: TARS)
Tarsus Pharmaceuticals, Inc. (NASDAQ: TARS) shows weak financial fundamentals with a PE ratio of -82.35, profit margin of -7.67%, and ROE of -13.53%. The company generates $0.6B in annual revenue with weak year-over-year growth of 1.47%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 30.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TARS's fundamental strength across five key dimensions:
Efficiency Score
WeakTARS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTARS trades at attractive valuation levels.
Growth Score
ModerateTARS shows steady but slowing expansion.
Financial Health Score
ExcellentTARS maintains a strong and stable balance sheet.
Profitability Score
WeakTARS struggles to sustain strong margins.
Key Financial Metrics
Is TARS Expensive or Cheap?
P/E Ratio
TARS trades at -82.35 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TARS's PEG of -0.98 indicates potential undervaluation.
Price to Book
The market values Tarsus Pharmaceuticals, Inc. at 11.23 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -112.96 times EBITDA. This is generally considered low.
How Well Does TARS Make Money?
Net Profit Margin
For every $100 in sales, Tarsus Pharmaceuticals, Inc. keeps $-7.67 as profit after all expenses.
Operating Margin
Core operations generate -8.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-13.53 in profit for every $100 of shareholder equity.
ROA
Tarsus Pharmaceuticals, Inc. generates $-7.60 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tarsus Pharmaceuticals, Inc. produces operating cash flow of $79.02M, showing steady but balanced cash generation.
Free Cash Flow
Tarsus Pharmaceuticals, Inc. generates strong free cash flow of $61.02M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.42 in free cash annually.
FCF Yield
TARS converts 1.57% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-82.35
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.98
vs 25 benchmark
P/B Ratio
Price to book value ratio
11.23
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.37
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.14
vs 25 benchmark
ROA
Return on assets percentage
-0.08
vs 25 benchmark
ROCE
Return on capital employed
-0.11
vs 25 benchmark
How TARS Stacks Against Its Sector Peers
| Metric | TARS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -82.35 | 31.74 | Better (Cheaper) |
| ROE | -13.53% | 531.00% | Weak |
| Net Margin | -7.67% | 21584.00% | Weak |
| Debt/Equity | 0.26 | 0.54 | Strong (Low Leverage) |
| Current Ratio | 3.20 | 5.58 | Strong Liquidity |
| ROA | -7.60% | -90.00% (disorted) | Weak |
TARS outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Tarsus Pharmaceuticals, 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
-20.49%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
71.35%
Industry Style: Defensive, Growth, Innovation
High Growth