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ARWRArrowhead Pharmaceuticals, Inc.
$86.97$12.3B
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Arrowhead Pharmaceuticals, Inc. (ARWR) Financial Ratios

Latest Ratios: P/E Ratio -7128.7x · EV/EBITDA 101.3x · ROE -0.5%. (1997–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

ARWR Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$12.3B$4.6B$2.3B$2.9B$3.5B$6.5B$4.3B$2.8B$1.6B$320M$449M
Enterprise Value$12.4B$4.8B$3.1B$3.1B$3.5B$6.3B$4.2B$2.6B$1.6B$298M$366M
P/E Ratio →-7128.69——————40.84———
P/S Ratio14.775.56653.4011.9214.3346.8449.2916.4699.3310.192834.05
P/B Ratio23.119.1612.149.998.3315.849.3911.3916.833.964.72
P/FCF78.0829.41———43.84—17.26———
P/OCF68.2325.69———37.81—16.06———

P/E links to full P/E history page with 30-year chart

ARWR EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—5.73864.3913.0514.2245.6947.9015.1597.609.482312.12
EV / EBITDA101.3338.87—————38.96———
EV / EBIT125.9833.73—————41.79———
EV / FCF—30.30———42.76—15.88———

ARWR Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin100.0%100.0%-423.7%94.8%95.7%——————
Operating Margin11.9%11.9%-16927.1%-85.2%-73.4%-107.8%-105.9%36.3%-346.5%-117.8%-51627.1%
Net Profit Margin-0.2%-0.2%-16882.4%-85.3%-72.4%-101.9%-96.1%40.3%-337.3%-109.5%-51614.6%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE-0.5%-0.5%-250.7%-58.2%-42.6%-32.4%-24.0%40.1%-61.8%-39.1%-79.9%
ROA-0.1%-0.1%-62.9%-28.2%-25.1%-22.9%-19.4%29.5%-50.5%-29.6%-62.8%
ROIC9.3%9.3%-60.1%-32.3%-41.7%-37.9%-38.6%102.4%-66.6%-78.2%-295.1%
ROCE8.8%8.8%-70.9%-33.8%-32.0%-28.5%-25.4%34.8%-60.6%-39.4%-74.7%

ARWR Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.730.734.461.340.200.060.05—0.020.030.03
Debt / EBITDA3.003.00—————————
Net Debt / Equity—0.283.920.95-0.06-0.39-0.27-0.91-0.29-0.28-0.87
Net Debt / EBITDA1.141.14—————-3.38———
Debt / FCF—0.89———-1.08—-1.38———
Interest Coverage1.581.58-17.93-10.27———————

ARWR Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio4.864.866.743.982.922.627.922.736.373.633.53
Quick Ratio4.864.866.743.983.072.597.822.706.273.583.48
Cash Ratio4.704.706.603.832.712.517.762.676.193.513.33
Asset Turnover—0.600.000.310.350.190.170.480.140.300.00
Inventory Turnover———————————
Days Sales Outstanding—3.00——2.1227.073.511.437.400.79172.90

ARWR Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield———————————
Payout Ratio———————————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield———————2.4%———
FCF Yield1.3%3.4%———2.3%—5.8%———
Buyback Yield0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Total Shareholder Yield0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Shares Outstanding—$134M$120M$107M$105M$104M$101M$99M$84M$74M$61M

Key Metrics

Growth RegimeMixed
ProfitabilityNegative
Balance SheetVulnerable
Cash FlowBurning
Top Statement Risk

Liquidity exhaustion from R&D

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q2)

Platform Premium Masks Earnings Volatility

As reported in financial statements, the company's P/S ratio of 13.40 suggests investors are pricing in significant future platform success, despite a TTM P/E of -6466.39 that highlights the absence of sustainable, recurring earnings in the current milestone-dependent business model.

The valuation appears to be driven by the perceived optionality of the TRiM platform rather than traditional fundamental metrics. Investors should monitor whether this premium can be sustained if clinical milestones fail to materialize or if the company requires further dilutive equity financing to fund its pipeline.

Capital Efficiency Hindered by R&D

Based on reported figures, the company's ROIC has fluctuated wildly, reaching a peak of 27.1% in 2025Q2 before collapsing to -8.6% in 2026Q2, illustrating that returns on invested capital are entirely dependent on the timing of non-recurring licensing payments rather than operational compounding.

The extreme volatility in ROIC suggests that the company is not currently compounding capital in a traditional sense. The negative trend in recent quarters implies that the heavy investment in late-stage clinical assets is currently outpacing the value generated from partner-driven milestone recognition.

Working Capital Distorted by Milestones

According to quarterly data, the company's asset turnover remains extremely low at 0.04 in 2026Q2, reflecting a business model that lacks a physical product manufacturing base and relies instead on the sporadic recognition of intellectual property licensing milestones.

The lack of a traditional cash conversion cycle is evident, as the company does not manage inventory or standard trade receivables. This structural absence of operational efficiency metrics suggests that traditional turnover analysis is less relevant than monitoring the timing of partner-driven cash inflows.

Debt Burden Increases Financial Risk

As indicated by recent SEC filings, the debt-to-equity ratio has spiked to 2.29 in 2026Q2, suggesting that management is increasingly utilizing debt to bridge the gap between intensive R&D expenditures and the unpredictable timing of milestone-based revenue streams.

The negative interest coverage ratio of -5.92 in 2026Q2 warrants further investigation, as it indicates that the company's core operations are not generating sufficient income to cover debt service obligations. This leverage profile increases the risk of financial distress if clinical milestones are delayed.

Gross Margin Misleads Operational Reality

As reported in financial statements, the 100% gross margin is a technical artifact of the licensing model that obscures the massive, ongoing R&D burn required to maintain the TRiM platform and advance late-stage clinical assets like plozasiran.

Investors frequently misapply the 100% gross margin as a sign of high profitability, when it actually masks the absence of a commercial cost structure. A more accurate assessment of the company's earning power would require adjusting for the full R&D expense as a necessary cost of production.

Download Financial Ratios Data

Includes 30+ ratios · 29 years · Updated daily

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ARWR — Frequently Asked Questions

Quick answers to the most common questions about buying ARWR stock.

What is Arrowhead Pharmaceuticals, Inc.'s P/E ratio?

Arrowhead Pharmaceuticals, Inc.'s current P/E ratio is -7128.7x. The historical average is 20.9x.

What is Arrowhead Pharmaceuticals, Inc.'s EV/EBITDA?

Arrowhead Pharmaceuticals, Inc.'s current EV/EBITDA is 101.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 38.9x.

What is Arrowhead Pharmaceuticals, Inc.'s ROE?

Arrowhead Pharmaceuticals, Inc.'s return on equity (ROE) is -0.5%. The historical average is -76.7%.

Is ARWR stock overvalued?

Based on historical data, Arrowhead Pharmaceuticals, Inc. is trading at a P/E of -7128.7x. Compare with industry peers and growth rates for a complete picture.

What are Arrowhead Pharmaceuticals, Inc.'s profit margins?

Arrowhead Pharmaceuticals, Inc. has 100.0% gross margin and 11.9% operating margin. Operating margin between 10-20% is typical for established companies.

How much debt does Arrowhead Pharmaceuticals, Inc. have?

Arrowhead Pharmaceuticals, Inc.'s Debt/EBITDA ratio is 3.0x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.