Tarsus Pharmaceuticals, Inc.
$58.76
-0.29%Tarsus Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of novel therapeutic candidates for ophthalmic conditions. Its lead product candidate is TP-03, a novel therapeutic that is in Phase III for the treatment of blepharitis caused by the infestation of Demodex mites, as well as to treat meibomian gland disease. The company is also developing TP-04 for the treatment of rosacea; and TP-05 for Lyme prophylaxis and community malaria reduction. In addition, the company develops lotilaner to address diseases across therapeutic categories in human medicine, including eye care, dermatology, and other diseases. Tarsus Pharmaceuticals, Inc. was incorporated in 2016 and is headquartered in Irvine, California.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -37.0).
Valuation inputs: P/E -37.0, earnings yield N/A, momentum -0.3%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -19.3%, ROIC -16.6%).
Profitability stack: net margin -14.7%, ROE -19.3%, ROIC -16.6%.
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 +38.9%, momentum -0.3%, net margin -14.7%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Tarsus Pharmaceuticals, Inc. Market vs Earnings Trajectory
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Tarsus Pharmaceuticals, Inc. Fair Value Envelope
Tarsus Pharmaceuticals, 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.
Tarsus Pharmaceuticals, 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
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Tarsus Pharmaceuticals, 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
Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.
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.
Financial Health Insight
Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.
Tarsus Pharmaceuticals, Inc. Street Expectations Map
Wall Street analysts project that TARS stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 84.00, with estimates ranging from a low of 68.00 to a high of 100.00.
The consensus 1-year price target stands at 84.00, with estimates ranging from a low of 68.00 to a high of 100.00.
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
Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.
Analyst Conviction
Positive outlook with reasonable agreement. Analysts generally optimistic about prospects with manageable uncertainty.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Tarsus Pharmaceuticals, Inc. Insider Positioning
During the last 12 months, insiders have sold $12.77M worth of TARS shares, with no buying activity reported.
3 Months
0
0.00
97.9K
6.68M
-6.7M
-$6.68M
3-6 Months
0
0.00
32.0K
2.55M
-2.5M
-$2.55M
6-9 Months
0
0.00
33.1K
1.88M
-1.9M
-$1.88M
9-12 Months
0
0.00
38.1K
1.66M
-1.7M
-$1.66M
Top Buyers
No buying activity
Top Sellers
Azamian Bobak R.
Director, Officer: President/Ceo And Board Chair
$3.45M
Link William J Phd
Director
$2.20M
Whitfield Dianne C.
Officer: Chief Human Resources Officer
$1.89M
Mottiwala Aziz
Officer: Chief Commercial Officer
$1.66M
Neervannan Seshadri
Officer: Chief Operating Officer
$1.61M
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $12.77M 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. 0 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
TARS has not reported any dividend yield values in the available annual periods.
tars Dividend History
Learning Layer
Related Guides
Build conviction on TARS 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.