Tempus AI (TEM) Stock Analysis
This is a peer-relative look at Tempus AI (TEM): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Pharmaceuticals, Biotechnology & Life Sciences peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | TEM |
|---|---|
| Name | Tempus AI Inc Class A Common Stock |
| Country/Region | United States |
| GICS Sector | Health Care |
| GICS Industry Group | Pharmaceuticals, Biotechnology & Life Sciences |
| GICS Industry | Life Sciences Tools & Services |
| GICS Sub-Industry | Life Sciences Tools & Services |
| Market Capitalization | 13.87 billion USD |
| Currency | USD |
| Exchange | Nasdaq |
| Listing Date | June 14, 2024 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: TEM | Industry group median |
|---|---|---|
| Total Return (1Y) | 16.25% | 24.62% |
| Total Return (3Y, Annualized) | -- | 20.37% |
| Total Return (5Y, Annualized) | -- | -4.02% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: TEM | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 76.08% | 66.36% |
| Beta (5Y) | 3.34 | 0.93 |
| Max Drawdown (5Y) | -59.76% | -80.19% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: TEM | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | 0.16 | 0.36 |
| Sortino Ratio (1Y) | 0.26 | 0.58 |
Profitability
ROE (TTM)
Tempus AI (TEM) has negative ROE of -37.55%. That can come from trailing losses or negative book equity, so it is a warning state rather than a clean capital-efficiency measure.
TEM
Pharmaceuticals, Biotechnology & Life Sciences industry group
-37.55%
Group distribution
- Max
- 109.18%
- Q3
- 6.23%
- Median
- -26.66%
- TEM
- -37.55%
- Q1
- -64.05%
- Min
- -167.77%
Largest peers
- LLY
- 86.02%
- NVS
- 24.33%
- AZN
- 22.57%
- JNJ
- 20.02%
- MRK
- 5.06%
- TEM
- -37.55%
- ABBV
- --
Net Margin (TTM)
Tempus AI (TEM) has negative net margin of -12.54%. The trailing period ended in a net loss, so the bottom-line conversion read is a warning rather than a profitability strength.
TEM
Pharmaceuticals, Biotechnology & Life Sciences industry group
-12.54%
Group distribution
- Max
- 18.05%
- Q3
- 4.78%
- Median
- 0.00%
- Q1
- -4.14%
- TEM
- -12.54%
- Min
- -17.05%
Largest peers
- LLY
- 31.90%
- AZN
- 17.68%
- NVS
- 17.49%
- JNJ
- 16.20%
- ABBV
- 15.67%
- MRK
- 3.64%
- TEM
- -12.54%
Operating Margin (TTM)
Tempus AI (TEM) has negative operating margin of -13.82%. Core operations were loss-making before interest and taxes over the trailing period.
TEM
Pharmaceuticals, Biotechnology & Life Sciences industry group
-13.82%
Group distribution
- Max
- 83.12%
- Q3
- 14.77%
- Median
- 0.00%
- TEM
- -13.82%
- Q1
- -78.82%
- Min
- -207.40%
Largest peers
- LLY
- 53.66%
- ABBV
- 39.59%
- MRK
- 35.22%
- NVS
- 34.27%
- AZN
- 29.57%
- JNJ
- 25.74%
- TEM
- -13.82%
Profitability Metrics
| Metric | Current stock: TEM | Industry group median |
|---|---|---|
| ROE (TTM) | -37.55% | -26.66% |
| ROA (TTM) | -7.36% | -12.50% |
| Net Margin (TTM) | -12.54% | 0.00% |
| Operating Margin (TTM) | -13.82% | 0.00% |
| Gross Margin (TTM) | 64.46% | 37.87% |
Growth
Revenue Growth
Tempus AI (TEM) grew revenue 83.41%, in the upper peer quartile. The top line is expanding faster than at most industry peers, which points to share gains or stronger pricing.
EPS Growth
No usable EPS growth is available for Tempus AI (TEM) this period, so the earnings-momentum read is skipped.
Growth Metrics
| Metric | Current stock: TEM | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 83.41% | 11.45% |
| Revenue Growth (3Y CAGR) | 58.29% | 9.94% |
| EPS Growth (YoY) | -- | 4.28% |
| EPS Growth (3Y CAGR) | -- | 4.17% |
Financial Strength
Current Ratio (MRQ)
Tempus AI (TEM) has current ratio of 2.61, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.
TEM
Pharmaceuticals, Biotechnology & Life Sciences industry group
2.61
Group distribution
- Max
- 25.13
- Q3
- 12.13
- Median
- 5.52
- TEM
- 2.61
- Q1
- 2.47
- Min
- 0.10
Largest peers
- TEM
- 2.61
- LLY
- 1.39
- MRK
- 1.35
- JNJ
- 1.02
- AZN
- 1.01
- NVS
- 0.88
- ABBV
- 0.87
Debt / Equity (MRQ)
Tempus AI (TEM) has debt-to-equity ratio of 2.86, above the industry benchmark range. Debt sits unusually high against shareholders’ equity, leaving the balance sheet more exposed to rate, refinancing, or earnings shocks.
TEM
Pharmaceuticals, Biotechnology & Life Sciences industry group
2.86
Group distribution
- TEM
- 2.86
- Max
- 1.42
- Q3
- 0.65
- Median
- 0.15
- Q1
- 0.02
- Min
- 0.00
Largest peers
- TEM
- 2.86
- NVS
- 1.29
- LLY
- 1.23
- MRK
- 1.20
- AZN
- 0.66
- JNJ
- 0.55
- ABBV
- --
Financial Strength Metrics
| Metric | Current stock: TEM | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 2.61 | 5.52 |
| Debt / Equity (MRQ) | 2.86 | 0.15 |
| Net Debt / EBITDA | -- | 1.08 |
Dividends
Dividend Yield (TTM)
Tempus AI (TEM) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.
TEM
Pharmaceuticals, Biotechnology & Life Sciences industry group
0.00%
Group distribution
- TEM
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- NVS
- 2.88%
- ABBV
- 2.40%
- MRK
- 2.29%
- JNJ
- 1.94%
- AZN
- 1.73%
- LLY
- 0.49%
- TEM
- 0.00%
Dividend Payout Ratio (TTM)
Tempus AI (TEM) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.
TEM
Pharmaceuticals, Biotechnology & Life Sciences industry group
0.00%
Group distribution
- TEM
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- MRK
- 343.43%
- ABBV
- 117.35%
- NVS
- 90.46%
- JNJ
- 80.12%
- AZN
- 45.38%
- LLY
- 21.71%
- TEM
- 0.00%
Dividend Metrics
| Metric | Current stock: TEM | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
No usable P/E ratio is available for Tempus AI (TEM) this period, so the trailing-earnings valuation read is skipped.
TEM
Pharmaceuticals, Biotechnology & Life Sciences industry group
--
Group distribution
- Max
- 85.34
- Q3
- 43.46
- Median
- 26.69
- Q1
- 13.30
- Min
- 0.07
- TEM
- --
Largest peers
- MRK
- 148.21
- ABBV
- 50.05
- LLY
- 43.95
- JNJ
- 41.92
- NVS
- 31.02
- AZN
- 26.37
- TEM
- --
P/S Ratio (TTM)
Tempus AI (TEM) trades at 9.19 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.
TEM
Pharmaceuticals, Biotechnology & Life Sciences industry group
9.19
Group distribution
- Max
- 58.18
- Q3
- 25.77
- TEM
- 9.19
- Median
- 7.30
- Q1
- 3.01
- Min
- 0.01
Largest peers
- LLY
- 13.95
- TEM
- 9.19
- ABBV
- 7.80
- JNJ
- 6.69
- MRK
- 5.37
- NVS
- 5.35
- AZN
- 4.63
P/B Ratio (MRQ)
Tempus AI (TEM) trades at 27.66 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.
TEM
Pharmaceuticals, Biotechnology & Life Sciences industry group
27.66
Group distribution
- TEM
- 27.66
- Max
- 13.53
- Q3
- 6.54
- Median
- 3.25
- Q1
- 1.69
- Min
- -5.59
Largest peers
- LLY
- 29.96
- TEM
- 27.66
- NVS
- 8.25
- JNJ
- 8.16
- MRK
- 8.06
- AZN
- 5.59
- ABBV
- -112.34
Valuation Metrics
| Metric | Current stock: TEM | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | -- | 26.69 |
| P/S Ratio (TTM) | 9.19 | 7.30 |
| P/B Ratio (MRQ) | 27.66 | 3.25 |
| Free Cash Flow Yield (TTM) | 0.30% | -1.66% |