Arcutis Biotherapeutics, Inc.
$21.35
-0.56%Arcutis Biotherapeutics, Inc., a biopharmaceutical company, focuses on developing and commercializing treatments for dermatological diseases. Its lead product candidate is ARQ-151, a topical roflumilast cream that has completed Phase III clinical trials for the treatment of plaque psoriasis and atopic dermatitis. The company is also developing ARQ-154, a topical foam formulation of roflumilast for the treatment of seborrheic dermatitis and scalp psoriasis; ARQ-252, a selective topical janus kinase type 1 inhibitor for hand eczema and vitiligo; and ARQ-255, a topical formulation of ARQ-252 designed to reach deeper into the skin in order to treat alopecia areata. The company was formerly known as Arcutis, Inc. and changed its name to Arcutis Biotherapeutics, Inc. in October 2019. Arcutis Biotherapeutics, Inc. was incorporated in 2016 and is headquartered in Westlake Village, California.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -164.2).
Valuation inputs: P/E -164.2, earnings yield N/A, momentum -0.6%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -8.5%, ROIC -4.0%).
Profitability stack: net margin -4.3%, ROE -8.5%, ROIC -4.0%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +56.2%, momentum -0.6%, net margin -4.3%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Arcutis Biotherapeutics, Inc. Market vs Earnings Trajectory
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Arcutis Biotherapeutics, Inc. Fair Value Envelope
Arcutis Biotherapeutics, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Arcutis Biotherapeutics, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Weak cash conversion. Significant portion of earnings not converting to cash—review working capital trends and capital intensity.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extension—monitor closely.
Cash Flow Quality Insight
Working capital strain: Significant cash tied up in operations. Monitor receivables collection, inventory turns, and payment terms to optimize cash conversion cycle.
Arcutis Biotherapeutics, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Arcutis Biotherapeutics, Inc. Street Expectations Map
Wall Street analysts project that ARQT stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 34.00, with estimates ranging from a low of 34.00 to a high of 34.00.
The consensus 1-year price target stands at 34.00, with estimates ranging from a low of 34.00 to a high of 34.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.
Arcutis Biotherapeutics, Inc. Insider Positioning
During the last 12 months, insiders have purchased $65K and sold $10.83M worth of ARQT shares, resulting in $10.76M of net selling activity.
3 Months
0
0.00
25.2K
588.39K
-588K
-$588K
3-6 Months
0
0.00
85.4K
2.26M
-2.3M
-$2.26M
6-9 Months
0
0.00
234.4K
6.08M
-6.1M
-$6.08M
9-12 Months
4.9K
64.86K
126.7K
1.91M
-1.8M
-$1.84M
Top Buyers
Heron Patrick J
Director
$65K
Top Sellers
Watanabe Todd
Director, Officer: See Remarks
$3.46M
Welgus Howard G.
Director
$1.99M
Burnett Patrick
Officer: See Remarks
$1.52M
Matsuda Masaru
Officer: See Remarks
$1.13M
Leonard Keith R
Director
$997K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $10.76M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
No Dividend Yield Data
ARQT has not reported any dividend yield values in the available annual periods.
arqt Dividend History
Learning Layer
Related Guides
Build conviction on ARQT by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.