Tarsus Pharmaceuticals (TARS) AI Stock Analysis

• Market Cap: $2.86B
• Dividend Yield: N/A
• Average Volume (3M): 687.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: 254.45%
• EPS Growth: 48.06%
• Country: US
• Employees: 323
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.48
• Shares Outstanding: 42,214,108
• 10 Day Avg. Volume: 581,751
• 30 Day Avg. Volume: 687,732
• PEG Ratio: 0.54
• Price to Book (P/B): 9.27
• Price to Sales (P/S): 11.38
• P/FCF Ratio: -24.61
• Enterprise Value/Market Cap: 0.49
• Enterprise Value/Revenue: 4.76
• Enterprise Value/Gross Profit: 5.10
• Enterprise Value/Ebitda: -16.56
• 1Y Price Target: $73.33
• Price Target Upside: 8.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 59 Neutral
• Price Target: $68.00 ▲(0.41% Upside)

Tarsus Pharmaceuticals' overall stock score is driven by strong earnings call insights and technical momentum, despite financial performance challenges and valuation concerns. The company's growth potential and strategic initiatives are significant positives, but profitability and cash flow issues need addressing.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market penetration and product adoption, enhancing long-term business sustainability and market presence.

Global Expansion Plans

Global expansion efforts, including regulatory progress in Japan and Europe, position Tarsus for increased market share and diversified revenue streams.

Strong Financial Position

A strong financial position with high gross margins and substantial cash reserves provides Tarsus with the flexibility to invest in growth and innovation.

Negative Factors

Profitability Challenges

Ongoing profitability issues, reflected in negative net profit and EBIT margins, could hinder long-term financial sustainability and shareholder returns.

High SG&A Expenses

Rising SG&A expenses may pressure margins and profitability, requiring careful cost management to maintain financial health as the company scales.

Cash Flow Challenges

Negative operating and free cash flows indicate potential liquidity constraints, impacting the company's ability to fund operations and growth initiatives.

Tarsus Pharmaceuticals Business Overview & Revenue Model

Company Description

Tarsus Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company focused on developing innovative therapies for the treatment of eye diseases. The company primarily operates within the ophthalmology sector, with a focus on addressing unmet medical needs through its proprietary product candidates. Tarsus is advancing its lead product, TP-03, aimed at treating Demodex blepharitis, a condition affecting the eyelids and eyelashes, and is exploring additional indications in the ophthalmic space.

How the Company Makes Money

Tarsus Pharmaceuticals generates revenue primarily through the development and commercialization of its pharmaceutical products. The company's revenue model is centered around bringing its lead product, TP-03, to market, which includes potential sales from prescriptions once it receives regulatory approval. Furthermore, Tarsus may engage in strategic partnerships with larger pharmaceutical companies for co-development and commercialization agreements, which can provide upfront payments, milestone payments, and royalties on future sales. The company may also generate revenue through grants or funding from research initiatives. As it advances its clinical programs and potentially secures regulatory approvals, Tarsus aims to establish a stream of income through direct product sales and collaborations.

Tarsus Pharmaceuticals Financial Statement Overview

Summary

Tarsus Pharmaceuticals shows strong revenue growth with a 26.47% increase in the TTM period, indicating positive momentum. However, the company is facing significant profitability challenges, with negative net profit and EBIT margins. The gross profit margin remains high at 93.36%, reflecting efficient cost management relative to revenue. Overall, while revenue growth is promising, the persistent losses highlight ongoing operational challenges.

Income Statement

Tarsus Pharmaceuticals shows strong revenue growth with a 26.47% increase in the TTM period, indicating positive momentum. However, the company is facing significant profitability challenges, with negative net profit and EBIT margins. The gross profit margin remains high at 93.36%, reflecting efficient cost management relative to revenue. Overall, while revenue growth is promising, the persistent losses highlight ongoing operational challenges.

Balance Sheet

The company's balance sheet is relatively stable, with a low debt-to-equity ratio of 0.22, indicating conservative leverage. However, the return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. The equity ratio is healthy, suggesting a solid capital structure. While the low leverage is a strength, the negative ROE points to profitability issues.

Cash Flow

Cash flow analysis reveals a challenging situation with negative operating and free cash flows, although there is a positive free cash flow growth rate of 20.51% in the TTM period. The operating cash flow to net income ratio is negative, indicating cash flow issues relative to net income. Despite some improvement in free cash flow, the overall cash flow position remains weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	295.52M	182.95M	17.45M	25.82M	57.03M	0.00
Gross Profit	275.90M	170.13M	15.85M	24.86M	54.95M	-246.00K
EBITDA	-84.97M	-106.48M	-131.67M	-59.11M	-13.17M	-26.56M
Net Income	-91.99M	-115.55M	-135.89M	-62.09M	-13.83M	-26.81M
Balance Sheet
Total Assets	494.99M	376.99M	265.49M	227.86M	178.91M	171.97M
Cash, Cash Equivalents and Short-Term Investments	381.14M	291.38M	227.44M	217.03M	171.81M	168.13M
Total Debt	72.45M	72.45M	31.73M	20.16M	1.89M	831.00K
Total Liabilities	162.38M	152.46M	68.50M	34.96M	12.18M	5.99M
Stockholders Equity	332.61M	224.53M	196.99M	192.90M	166.73M	165.98M
Cash Flow
Free Cash Flow	-87.82M	-84.59M	-123.00M	-49.54M	3.16M	-21.59M
Operating Cash Flow	-80.87M	-83.03M	-117.49M	-49.03M	3.75M	-21.14M
Investing Cash Flow	-143.09M	-199.19M	140.60M	-144.63M	-586.00K	-456.00K
Financing Cash Flow	142.08M	154.66M	130.18M	93.99M	21.00K	131.77M

Tarsus Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 67.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TARS, the sentiment is Positive. The current price of 67.72 is above the 20-day moving average (MA) of 55.88, above the 50-day MA of 53.16, and above the 200-day MA of 48.47, indicating a bullish trend. The MACD of 2.66 indicates Negative momentum. The RSI at 77.40 is Negative, neither overbought nor oversold. The STOCH value of 91.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TARS.

Tarsus Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TARS	59 Neutral	$2.86B	―	-31.46%	―	254.45%	48.06%
ARQT	58 Neutral	$2.37B	―	-57.33%	―	99.50%	65.91%
RXRX	52 Neutral	$2.40B	―	-86.34%	―	30.14%	-10.08%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BEAM	50 Neutral	$2.62B	―	-41.94%	―	-82.90%	-155.64%
DNLI	45 Neutral	$2.25B	―	-39.69%	―	-100.00%	1.62%
IRON	43 Neutral	$2.41B	―	-26.36%	―	―	-22.19%

Tarsus Pharmaceuticals Corporate Events

Tarsus Pharmaceuticals Holds Annual Stockholders Meeting

On June 12, 2025, Tarsus Pharmaceuticals, Inc. held its Annual Meeting of Stockholders where several key proposals were voted upon. The stockholders elected two Class II directors, approved executive compensation on a non-binding basis, decided on an annual frequency for future compensation votes, and ratified Ernst & Young LLP as the independent auditor for the fiscal year ending December 31, 2025.

The most recent analyst rating on (TARS) stock is a Buy with a $73.00 price target. To see the full list of analyst forecasts on Tarsus Pharmaceuticals stock, see the TARS Stock Forecast page.