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In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
Arcutis Biotherapeutics's Net-Net Working Capital for the quarter that ended in Jun. 2026 was $0.85.
The industry rank for Arcutis Biotherapeutics's Net-Net Working Capital or its related term are showing as below:
ARQT's Price-to-Net-Net-Working-Capital is ranked worse than 89.12% of 818
companies
in the Biotechnology industry
Industry Median: 5.3
vs ARQT: 29.21
Arcutis Biotherapeutics (NAS:ARQT) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Arcutis Biotherapeutics Net-Net Working Capital Related Terms
Arcutis Biotherapeutics Net-Net Working Capital Historical Data
* Premium members only.
The historical data trend for Arcutis Biotherapeutics's Net-Net Working Capital can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Arcutis Biotherapeutics Net-Net Working Capital Chart
ARQT vs IDYA, NAMS, ALMS: Net-Net Working Capital Comparison
For the Biotechnology subindustry, Arcutis Biotherapeutics's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Arcutis Biotherapeutics Price-to-Net-Net-Working-Capital vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Arcutis Biotherapeutics's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Arcutis Biotherapeutics's Price-to-Net-Net-Working-Capital falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $0.85 mean?
Arcutis Biotherapeutics (ARQT) has a Net-Net Working Capital of $0.85 as of Jun. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Arcutis Biotherapeutics According to the industry distribution chart, Arcutis Biotherapeutics ranks #729 out of 818 companies in the Biotechnology industry, placing it in the top 89.1%.
Is Arcutis Biotherapeutics' Net-Net Working Capital too high?
Arcutis Biotherapeutics' current Net-Net Working Capital is $0.85. The Biotechnology industry median Net-Net Working Capital is 5.30. Arcutis Biotherapeutics' value of $0.85 is 84% below this industry median. Based on the distribution chart, Arcutis Biotherapeutics ranks #729 out of 818 companies in the Biotechnology industry, which is in the bottom quartile relative to peers. Overall, Arcutis Biotherapeutics has a GF Score™ of 56/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arcutis Biotherapeutics' Net-Net Working Capital compare to IDYA and NAMS?
According to the Biotechnology industry distribution chart, Arcutis Biotherapeutics ranks #729 out of 818 companies for Net-Net Working Capital. This places Arcutis Biotherapeutics in the lower half of its industry. The industry median Net-Net Working Capital is 5.30. Arcutis Biotherapeutics' value of $0.85 is 84% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Biotechnology company?
The median Net-Net Working Capital among Biotechnology companies is 5.30, based on 818 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arcutis Biotherapeutics's current Net-Net Working Capital of $0.85 is 84% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Arcutis Biotherapeutics For the Biotechnology industry, the median Net-Net Working Capital is 5.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arcutis Biotherapeutics's current Net-Net Working Capital is $0.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arcutis Biotherapeutics stock overvalued right now?
Based on GuruFocus' analysis, Arcutis Biotherapeutics (ARQT) is currently considered Modestly Undervalued. The stock's GF Value™ is $30.59, compared to a current price of $24.83 — trading 18.8% below its estimated fair value. The current Net-Net Working Capital is $0.85 and 84% below the Biotechnology industry median of 5.30. Arcutis Biotherapeutics' overall GF Score™ is 56/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Arcutis Biotherapeutics (ARQT), the current Net-Net Working Capital is $0.85 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Arcutis Biotherapeutics (ARQT) Overvalued in 2026?
Based on GuruFocus' analysis, Arcutis Biotherapeutics stock appears to be undervalued.
The current stock price of $24.83 is trading 18.8% below its estimated GF Value™ of $30.59.
GuruFocus considers Arcutis Biotherapeutics to be Modestly Undervalued.
Key valuation signals for ARQT:
Net-Net Working Capital: $0.85
GF Value™: $30.59 vs. price of $24.83 (18.8% below fair value)
Industry Position: 84% below the Biotechnology median (#729 of 818)
No single metric tells the full story. See the ARQT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arcutis Biotherapeutics Inc is a commercial-stage biopharmaceutical company focused on developing and commercializing treatments for dermatological diseases with high unmet medical needs. Its current portfolio is comprised of differentiated topical and systemic treatments with potential to treat immune-mediated dermatological diseases and conditions. The company's product candidate ZORYVE roflumilast cream, has completed pivotal Phase 3 clinical trials in plaque psoriasis, demonstrating symptomatic improvement and favorable tolerability in this population. The Company has one reportable segment relating to the development and commercialization of treatments for dermatological diseases.
56GF Score
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