Tempus AI, Inc.
Tempus AI, Inc. Fundamental Analysis
Tempus AI, Inc. (TEM) shows moderate financial fundamentals with a PE ratio of -49.61, profit margin of -18.45%, and ROE of -67.96%. The company generates $1.1B in annual revenue with strong year-over-year growth of 30.38%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -53.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TEM's fundamental strength across five key dimensions:
Efficiency Score
WeakTEM struggles to generate sufficient returns from assets.
Valuation Score
ModerateTEM shows balanced valuation metrics.
Growth Score
ModerateTEM shows steady but slowing expansion.
Financial Health Score
ModerateTEM shows balanced financial health with some risks.
Profitability Score
WeakTEM struggles to sustain strong margins.
Key Financial Metrics
Is TEM Expensive or Cheap?
P/E Ratio
TEM trades at -49.61 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TEM's PEG of 58.54 indicates potential overvaluation.
Price to Book
The market values Tempus AI, Inc. at 19.92 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -103.82 times EBITDA. This is generally considered low.
How Well Does TEM Make Money?
Net Profit Margin
For every $100 in sales, Tempus AI, Inc. keeps $-18.45 as profit after all expenses.
Operating Margin
Core operations generate -21.81 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-67.96 in profit for every $100 of shareholder equity.
ROA
Tempus AI, Inc. generates $-8.94 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tempus AI, Inc. generates limited operating cash flow of $-217.93M, signaling weaker underlying cash strength.
Free Cash Flow
Tempus AI, Inc. generates weak or negative free cash flow of $-245.15M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.42 in free cash annually.
FCF Yield
TEM converts -2.45% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-49.61
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
58.54
vs 25 benchmark
P/B Ratio
Price to book value ratio
19.92
vs 25 benchmark
P/S Ratio
Price to sales ratio
9.04
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.63
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.28
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.68
vs 25 benchmark
ROA
Return on assets percentage
-0.09
vs 25 benchmark
ROCE
Return on capital employed
-0.12
vs 25 benchmark
How TEM Stacks Against Its Sector Peers
| Metric | TEM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -49.61 | 29.43 | Better (Cheaper) |
| ROE | -67.96% | 800.00% | Weak |
| Net Margin | -18.45% | -20145.00% (disorted) | Weak |
| Debt/Equity | 2.63 | 0.30 | Weak (High Leverage) |
| Current Ratio | 3.28 | 4.64 | Strong Liquidity |
| ROA | -8.94% | -17936.00% (disorted) | Weak |
TEM outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Tempus AI, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
1398.29%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-723.34%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-116.46%
Industry Style: Defensive, Growth, Innovation
Declining