Tempus AI, Inc. ranks below the peer group median, with a split structural profile: strong growth, but very weak profitability and valuation. The market setup has weakened, with clear trend damage and relative performance under pressure.
Peer-relative scores, weakest to strongest
Tempus AI develops AI-powered precision medicine and diagnostic solutions for healthcare providers and researchers.
The market prices Tempus AI on revenue growth and future scale potential, not on sustainable profitability or capital returns. With an operating margin of -18.7% and a ROIC of -12.3%, the market discounts the stock due to ongoing losses and persistent capital destruction, signaling skepticism about the business model’s ability to generate value. Unlike established diagnostics and biotech peers, Tempus AI has yet to prove that AI-driven scale can deliver sustainable margins. As a result, the market actively prices Tempus AI shares at a discount relative to more profitable growth companies, reflecting its assessment of the company’s current financial fragility. Only if Tempus AI delivers two consecutive quarters of positive operating margin and capital returns will the market's valuation framing shift.
Break down TEM's position across all dimensions with the full interactive tool.
This analysis is rule-based and descriptive. Peer-relative scores are derived from functional peer group comparisons using publicly available financial data. Scores reflect structural positioning only and do not constitute investment advice, a buy or sell recommendation, or a forecast of future performance. AssetNext peer scores are recalculated periodically as new data becomes available.
AssetNext scores reflect each company's structural position within its functional peer group — not a ranking against all stocks simultaneously. Peers are identified by similarity across eight financial dimensions, including revenue growth trajectory, margin structure, capital intensity, and earnings stability. A score of 75 means the company ranks in the top quartile within its own peer group, not the entire market.
Four dimension scores drive the overall peer score: Growth (revenue trajectory and expansion dynamics), Quality (margin structure and capital efficiency), Valuation (peer-relative pricing on standard multiples), and Stability (earnings consistency and financial predictability). Each dimension is scored 0–100 relative to the peer group, then combined into an overall peer score using equal weighting.
Because scores are peer-relative, the same company can have slightly different scores in different index universes. On comparison pages, both companies are shown within their shared peer universe wherever possible — so the scores are directly comparable. The peer basis is stated on each score card.
Scores are recalculated periodically as underlying financial data is updated. All analysis is descriptive and rule-based — AssetNext describes structural realities and never issues buy, sell or hold recommendations.