Arcus Biosciences (RCUS) AI Stock Analysis

• Market Cap: $885.20M
• Dividend Yield: N/A
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.95
• Revenue Growth: -40.51%
• EPS Growth: -35.07%
• Country: US
• Employees: 627
• Sector: Healthcare
• Sector Strength: 47
• Industry: Biotechnology
• EPS (TTM): -1.14
• Shares Outstanding: 105,885,140
• 10 Day Avg. Volume: 1,179,603
• 30 Day Avg. Volume: 1,160,483
• PEG Ratio: <0.01
• Price to Book (P/B): 2.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.50
• Enterprise Value/Market Cap: 1.58
• Enterprise Value/Revenue: 1.54
• Enterprise Value/Gross Profit: 10.32
• Enterprise Value/Ebitda: -1.23
• 1Y Price Target: $25.29
• Price Target Upside: 194.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 48 Neutral
• Price Target: $8.00 ▼(-6.87%Downside)

Arcus Biosciences faces significant financial and technical challenges, with negative profitability and bearish momentum weighing heavily on the stock score. Although strategic collaborations and promising clinical data offer potential for future growth, current valuations and operational inefficiencies suggest caution. The strong cash position and clinical advancements provide some optimism but are overshadowed by ongoing financial struggles.

Positive Factors

Clinical Development

Arcus is set to begin their first Phase 3 registration trial with the combination therapy compared to monotherapy, indicating progress in clinical development.

Clinical Efficacy

Arcus's combination data at ASCO exceeded expectations, suggesting a stronger future performance for the stock.

Financial Stability

Arcus ended the quarter with $1 billion in cash, cash equivalents, and marketable securities, which they expect will fund operations through three pivotal readouts.

Negative Factors

Commercial Uncertainty

Despite positive updates, investors remain cautious due to uncertainties over the commercial picture and seek more clarity before re-engaging.

Competitive Challenges

Difficulties competing with established players like Merck and Bristol and the considerable cost of running necessary studies pose challenges.

Market Reception

The response to the new data was relatively tepid, as it was presented alongside more established and novel studies that garnered more attention.

Arcus Biosciences Business Overview & Revenue Model

Company Description

Arcus Biosciences (RCUS) is a biopharmaceutical company focused on creating innovative cancer immunotherapies. Headquartered in Hayward, California, the company specializes in the development and commercialization of novel combination therapies aimed at treating cancer more effectively. Arcus leverages its robust drug discovery and development capabilities to advance a pipeline of proprietary and partnered therapeutic candidates targeting a range of cancer types.

How the Company Makes Money

Arcus Biosciences generates revenue primarily through strategic collaborations, licensing agreements, and partnerships with larger pharmaceutical companies. These collaborations often involve upfront payments, milestone payments based on the achievement of specific development or regulatory goals, and royalties on sales of commercialized products. The company invests heavily in research and development to advance its pipeline of drug candidates, with the aim of securing approvals that can lead to significant revenue streams from product sales and expanded licensing opportunities. Additionally, Arcus's ability to enter into lucrative partnerships with major industry players is a critical factor contributing to its financial performance.

Arcus Biosciences Financial Statement Overview

Summary

Arcus Biosciences shows strong gross profit margins but struggles with profitability due to consistent negative net income and EBIT. The balance sheet is moderately leveraged with sufficient cash reserves, but the cash flow statement highlights ongoing challenges in cash generation.

Income Statement

Arcus Biosciences has experienced fluctuating revenue with a decline from 2021 to TTM (Trailing-Twelve-Months). Gross profit margins are strong, but the company has consistently reported negative net income, EBIT, and EBITDA, indicating ongoing operational challenges. The net profit margin is negative due to substantial losses, which is a concern for profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, supported by a healthy level of cash and short-term investments relative to debt. However, the decline in stockholders' equity over recent periods indicates potential erosion in shareholder value. The equity ratio is reasonable, but the company relies on external financing, suggesting moderate financial stability.

Cash Flow

The cash flow statement reveals negative free cash flow in TTM, indicating challenges in generating cash from operations. The operating cash flow to net income ratio is unfavorable due to negative net income. Despite some stability in operating cash flows, the company needs to improve its cash generation to sustain operations without relying heavily on external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	141.00M	258.00M	117.00M	112.00M	382.88M	77.52M
Gross Profit	136.00M	248.00M	-223.00M	98.00M	375.82M	-81.48M
EBITDA	-390.00M	-268.00M	-283.00M	-250.00M	61.96M	-118.47M
Net Income	-391.00M	-283.00M	-307.00M	-267.00M	53.00M	-116.68M
Balance Sheet
Total Assets	1.16B	1.15B	1.09B	1.34B	1.59B	772.29M
Cash, Cash Equivalents and Short-Term Investments	997.00M	978.00M	759.00M	1.14B	681.30M	735.09M
Total Debt	60.00M	60.00M	11.00M	120.00M	116.89M	15.24M
Total Liabilities	625.00M	665.00M	633.00M	688.00M	750.45M	269.99M
Stockholders Equity	531.00M	485.00M	462.00M	657.00M	841.45M	502.30M
Cash Flow
Free Cash Flow	-303.00M	-176.00M	-330.00M	426.00M	-282.25M	108.11M
Operating Cash Flow	-300.00M	-170.00M	-306.00M	438.00M	-256.17M	111.17M
Investing Cash Flow	117.00M	-84.00M	194.00M	-413.00M	-3.87M	-434.37M
Financing Cash Flow	190.00M	277.00M	33.00M	33.00M	237.34M	438.68M

Arcus Biosciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RCUS, the sentiment is Negative. The current price of 8.59 is below the 20-day moving average (MA) of 8.96, below the 50-day MA of 8.80, and below the 200-day MA of 12.41, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 47.18 is Neutral, neither overbought nor oversold. The STOCH value of 45.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RCUS.

Arcus Biosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTLA	59 Neutral	$1.02B	―	-57.92%	―	-13.37%	2.57%
NRIX	56 Neutral	$892.72M	―	-64.16%	―	-30.25%	-5.92%
XERS	54 Neutral	$746.32M	―	222.83%	―	29.88%	35.11%
Sector *	51 Neutral	$7.55B	0.30	-61.90%	2.27%	17.11%	1.58%
VIR	50 Neutral	$706.40M	―	-44.59%	―	-73.79%	-5.24%
DAWN	50 Neutral	$670.01M	―	-17.80%	―	―	56.10%
RCUS	48 Neutral	$885.20M	―	-63.17%	―	-40.51%	-35.07%

Arcus Biosciences Corporate Events

Arcus Biosciences Holds Annual Stockholders Meeting

On June 10, 2025, Arcus Biosciences held its annual meeting of stockholders, where key proposals were voted on, including the election of Class I directors and the ratification of Ernst & Young LLP as the independent auditor for the fiscal year ending December 31, 2025. Additionally, the Board of Directors revised the Non-Employee Director Compensation Program, reflecting the company’s ongoing efforts to align its governance and compensation practices with industry standards.

The most recent analyst rating on (RCUS) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on Arcus Biosciences stock, see the RCUS Stock Forecast page.

Arcus Biosciences Presents Promising Phase 1/1b Trial Data

On June 1, 2025, Arcus Biosciences presented updated data from its Phase 1/1b clinical trial ARC-20, involving the combination of casdatifan and cabozantinib for patients with clear cell renal cell carcinoma. The interim analysis, with a data cutoff date of March 14, 2025, showed a confirmed objective response rate of 46% and an acceptable safety profile, indicating potential efficacy and safety for this treatment combination.

The most recent analyst rating on (RCUS) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on Arcus Biosciences stock, see the RCUS Stock Forecast page.