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Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Arcutis Biotherapeutics's annualized net income for the quarter that ended in Jun. 2026 was $60.0 Mil. Arcutis Biotherapeutics's average shareholder tangible equity for the quarter that ended in Jun. 2026 was $191.1 Mil. Therefore, Arcutis Biotherapeutics's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 31.41%.
The historical rank and industry rank for Arcutis Biotherapeutics's Return-on-Tangible-Equity or its related term are showing as below:
ARQT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -184.2 Med: -123.1 Max: 17.33
Current: 17.33
During the past 9 years, Arcutis Biotherapeutics's highest Return-on-Tangible-Equity was 17.33%. The lowest was -184.20%. And the median was -123.10%.
ARQT's Return-on-Tangible-Equity is ranked better than 89.99% of 1199
companies
in the Biotechnology industry
Industry Median: -42.31
vs ARQT: 17.33
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Arcutis Biotherapeutics Return-on-Tangible-Equity Related Terms
Arcutis Biotherapeutics Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Arcutis Biotherapeutics's Return-on-Tangible-Equity 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.
ARQT vs IDYA, NAMS, ALMS: Return-on-Tangible-Equity Comparison
For the Biotechnology subindustry, Arcutis Biotherapeutics's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Arcutis Biotherapeutics's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Arcutis Biotherapeutics's Return-on-Tangible-Equity 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 the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 31.41% mean?
Arcutis Biotherapeutics (ARQT) has a Return-on-Tangible-Equity of 31.41% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Arcutis Biotherapeutics and its competitors. According to the industry distribution chart, Arcutis Biotherapeutics ranks #120 out of 1199 companies in the Biotechnology industry, placing it in the top 10%.
Is Arcutis Biotherapeutics' Return-on-Tangible-Equity too high?
Arcutis Biotherapeutics' current Return-on-Tangible-Equity is 31.41%. Based on the distribution chart, Arcutis Biotherapeutics ranks #120 out of 1199 companies in the Biotechnology industry, which is in the top quartile — a strong position 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' Return-on-Tangible-Equity compare to IDYA and NAMS?
According to the Biotechnology industry distribution chart, Arcutis Biotherapeutics ranks #120 out of 1199 companies for Return-on-Tangible-Equity. This places Arcutis Biotherapeutics in the top 10% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Biotechnology company?
A good Return-on-Tangible-Equity depends on the Biotechnology industry context. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Arcutis Biotherapeutics and its competitors. Arcutis Biotherapeutics's current Return-on-Tangible-Equity is 31.41%. 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 $25.08 — trading 18% below its estimated fair value. The current Return-on-Tangible-Equity is 31.41%. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Arcutis Biotherapeutics (ARQT), the current Return-on-Tangible-Equity is 31.41% 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 $25.08 is trading 18% below its estimated GF Value™ of $30.59.
GuruFocus considers Arcutis Biotherapeutics to be Modestly Undervalued.
Key valuation signals for ARQT:
Return-on-Tangible-Equity: 31.41%
GF Value™: $30.59 vs. price of $25.08 (18% below fair value)
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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