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-driven precision medicine solutions for the healthcare sector.
The market prices Tempus AI on near-term revenue growth and integration risk, not on sustainable capital returns or margin strength. With ROIC at -7.2% and operating margin at -11.4% for FY25, the company’s rapid expansion through the PSNL acquisition prompts the market to consistently discount the stock for its ongoing capital inefficiencies and margin pressures. As a result, valuation reflects the market’s direct response to these negative capital returns and deteriorating margins. In the highly regulated and competitive healthcare AI sector, integration risks and margin weakness are penalized especially harshly, intensifying valuation pressure and leaving little room for error. The market’s verdict is clear: only a sustained improvement in capital returns and margins over at least two quarters could shift the market’s valuation stance.
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.