FCF is negative (-$263m) — cash-burning phase; acceptable only for pre-profit spec names · TTM from SEC filings (OCF − CapEx), four quarters to 06/26.
Rev+50.4%TTM YoYA
Revenue +50.4% — hypergrowth, top decile · Latest four quarters of revenue vs the four before them, from SEC filings.
D/E3.25D
D/E 3.25 — most levered decile in Healthcare (≈95th pctile)
P/S*8.9xC+
P/S 8.9x — above the Healthcare median (≈75th pctile)
PEG*——
PEG n/a — no positive earnings to base it on
* P/S replaces P/E — no positive earnings to divide by
* PEG n/a — no positive earnings to base it on
Targets: 1-year is analyst consensus where covered, 5- and 10-year are model estimates; the DCF is a cross-check, not a target. Methodology
Quality-growth score · 18.1
Quality5.3
Growth97.8
Value11.6
Why this score
Diluting shareholders
Short track record
Entry · Margin of safety
52-week rangeMid-range
30% off the 12-month high
Quality signals
ROIC-50.3% · Freturn on invested capital — leads the quality score
Model-generatedWritten from the fundamentals then; figures in the text are as of that day, today's are above · Editorial standards
Why now
The Bull Rankings model gives TEM a quality‑growth score of 25.1/100, with Growth as its strongest pillar and Quality its weakest, underscoring that the engine is top‑line expansion. Tempus’ closed‑loop platform and Hub application lock clinicians into a data‑rich diagnostic workflow, fueling a 50.4% revenue growth YoY while the market still values the company at a $15.1 B market cap and a current price of $83.55. The thesis rests on this compounding growth persisting as providers double‑down on precision‑medicine sequencing, which should keep the revenue runway wide open.
Moat
TEM’s moat lies in its integrated Tempus platform that couples a clinician’s desktop with its own NGS and PCR labs, creating a bi‑directional data loop that is costly to replicate. The repository of multimodal data and the Lens software embed the company deeply in life‑science research, generating high switching costs for hospitals and research institutions that have already built pipelines around its diagnostics.
Risk
The bear case centers on the company’s unsustainable economics: a -17.8% profit margin and a -57.2% ROE reveal that revenue growth is being eaten by costs, while a debt‑to‑equity of 3.25 and a beta of 3.54 amplify financial and market risk. Diluting shareholder signals and a short operating history further threaten the upside, and any slowdown in the precision‑medicine adoption curve would confirm the downside.
Horizon
1-3 yr $72.72 (18-analyst consensus) — catalyst-driven; binary events dominate. 5 yr $127.19 — requires the platform / technology to reach commercial scale. 10 yr $227.32 — return distribution heavily skewed.
TEM vs the Top Picks average
Pillar
TEM
Book avg
Diff
Quality
5
83
-78
Growth
98
89
+9
Value
12
76
-64
Average of today's Top 30 (mean score 82.6); size and sector limits also decide the book.
Score history · TEM
Trend
-9.2 over 82 daily scores
From 27.3 (Jun 22) → 18.1 (now)
One point per daily run; read From → To for the actual range.
TEM at a glance
Same audited fundamentals as the score, unless a card says otherwise.
Position sizing · TEM
$
%
%
Shares to buy
28
Position size
$1,986
4.0% of portfolio
Stop price
$53.20
25% below $70.93
$ at risk if stopped
$496.51
budget $500.00 · 1% of portfolio
Math only: excludes commissions, slippage and gap risk. Inputs stay in your browser.
Tempus AI, Inc. (TEM): score, valuation & FAQ
Tempus AI, Inc. (TEM) is a Health Information Services company that scores 18.1 out of 100 on the Bull Rankings quality-growth model — a weak reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are Rev (A), while D/E (D) and FCF (F) rate weaker.
Is TEM a good stock to buy?
Bull Rankings scores TEM 18.1 out of 100 on its quality-growth model, which is a weak reading. That is driven by Rev (A). A score is a quantitative screen of Tempus AI, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does TEM score 18.1 on Bull Rankings?
The score leans on growth at 97.8 out of 100, with quality the weakest pillar at 5.3 — the three combine geometrically, so a weak one cannot be papered over by a strong one. TEM earns its highest marks on Rev (A), and is held back by D/E (D) and FCF (F). Each signal is graded against sector-aware thresholds rather than one absolute bar, so TEM is measured against Health Information Services peers, not against the market as a whole.
Is TEM overvalued or undervalued?
We don't compute a reliable discounted-cash-flow value for TEM — typically because it is not yet consistently profitable or free-cash-flow positive — so its valuation rests on growth and price-to-sales rather than on earnings-based intrinsic value. Judge it on the trajectory of the business, not a single multiple.
What are the main risks of investing in TEM?
The bear case centers on the company’s unsustainable economics: a -17.8% profit margin and a -57.2% ROE reveal that revenue growth is being eaten by costs, while a debt‑to‑equity of 3.25 and a beta of 3.54 amplify financial and market risk. Diluting shareholder signals and a short operating history further threaten the upside, and any slowdown in the precision‑medicine adoption curve would confirm the downside.