TERN

Company Overview — What Does Terns Pharmaceuticals, Inc. Do?

Terns Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, develops small-molecule single-agent and combination therapy candidates for the treatment of non-alcoholic steatohepatitis (NASH) and obesity. The company develops TERN-101, a liver-distributed and non-bile acid farnesoid X receptor agonist, which is in Phase IIa clinical trial for the treatment of NASH; and TERN-201, a vascular adhesion protein-1 inhibitor that is in Phase Ib clinical trial for the treatment of NASH. It also develops TERN-501, a thyroid hormone receptor beta agonist with enhanced liver distribution and metabolic stability that is in Phase I clinical trial for the treatment of NASH; and TERN-601, a small-molecule Glucagon-Like Peptide-1 receptor agonist program that is intended to orally be administered for NASH and metabolic diseases, such as obesity. The company was incorporated in 2016 and is headquartered in Foster City, California. Terns Pharmaceuticals, Inc. (TERN) is classified as a mid-cap stock in the Healthcare sector, specifically within the Pharmaceutical Products industry. The company is led by CEO Senthil Sundaram and employs approximately 40 people. With a market capitalization of $6.1B, TERN is one of the notable companies in the Healthcare sector.

Terns Pharmaceuticals, Inc. (TERN) Stock Rating — Hold (April 2026)

As of April 2026, Terns Pharmaceuticals, Inc. receives a Hold rating with a composite score of 39.7/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.TERN ranks #731 out of 4,446 stocks in our coverage universe. Within the Healthcare sector, Terns Pharmaceuticals, Inc. ranks #49 of 838 stocks, placing it in the top 10% of its Healthcare peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).

TERN Stock Price and 52-Week Range

Terns Pharmaceuticals, Inc. (TERN) currently trades at $52.63. The stock gained $0.07 (0.1%) in the most recent trading session. The 52-week high for TERN is $48.26, which means the stock is currently trading 9.1% from its annual peak. The 52-week low is $1.86, putting the stock 2722.3% above its annual trough. Recent trading volume was 3.6M shares, reflecting moderate market activity.

Is TERN Overvalued or Undervalued? — Valuation Analysis

Terns Pharmaceuticals, Inc. (TERN) carries a value factor score of 33/100 in the Blank Capital model, signaling premium valuation that prices in significant future growth. The price-to-book ratio stands at 6.03x, versus the sector average of 2.75x.

At current multiples, Terns Pharmaceuticals, Inc. trades at a premium to most Healthcare peers. This elevated valuation may be justified if the company can sustain above-average growth rates and profitability, but it also creates downside risk if earnings disappoint expectations.

Terns Pharmaceuticals, Inc. Profitability — ROE, Margins, and Quality Score

Terns Pharmaceuticals, Inc. (TERN) earns a quality factor score of 29/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is -9.4%, compared to the Healthcare sector average of -43.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at -9.2% versus the sector average of -33.1%.

Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.

TERN Debt, Balance Sheet, and Financial Health

Terns Pharmaceuticals, Inc. has a debt-to-equity ratio of 2.0%, compared to the Healthcare sector average of 32.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 62.41x, indicating strong short-term liquidity. Total debt on the balance sheet is $0. Cash and equivalents stand at $151M.

TERN has a beta of 0.99, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for Terns Pharmaceuticals, Inc. is 36/100, suggesting elevated price swings that may be unsuitable for conservative portfolios.

Terns Pharmaceuticals, Inc. Revenue and Earnings History — Quarterly Trend

In TTM 2026, Terns Pharmaceuticals, Inc. reported revenue of $0 and earnings per share (EPS) of $-1.03. Net income for the quarter was $-95M. Operating income came in at $-107M.

In FY 2025, Terns Pharmaceuticals, Inc. reported revenue of $0 and earnings per share (EPS) of $-1.03. Net income for the quarter was $-96M. Operating income came in at $-110M.

In Q3 2025, Terns Pharmaceuticals, Inc. reported revenue of $0 and earnings per share (EPS) of $-0.27. Net income for the quarter was $-25M. Operating income came in at $-28M.

In Q2 2025, Terns Pharmaceuticals, Inc. reported revenue of $0 and earnings per share (EPS) of $-0.26. Net income for the quarter was $-24M. Operating income came in at $-27M.

Over the past 8 quarters, Terns Pharmaceuticals, Inc. has experienced revenue contraction from $0 to $0. Investors analyzing TERN stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.

TERN Dividend Yield and Income Analysis

Terns Pharmaceuticals, Inc. (TERN) does not currently pay a dividend. This is common among smaller companies in the Pharmaceutical Products industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Healthcare dividend stocks may want to explore other Healthcare stocks or use the stock screener to filter by dividend yield.

TERN Momentum and Technical Analysis Profile

Terns Pharmaceuticals, Inc. (TERN) has a momentum factor score of 79/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 25/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 4/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.

TERN vs Competitors — Healthcare Sector Ranking and Peer Comparison

Within the Healthcare sector, Terns Pharmaceuticals, Inc. (TERN) ranks #49 out of 838 stocks based on the Blank Capital composite score. This places TERN in the top decile of all Healthcare stocks in our coverage universe. Key competitors and sector peers include ASTRAZENECA PLC (AZN) with a score of 61.4/100, Sol-Gel Technologies Ltd. (SLGL) with a score of 56.6/100, VIEMED HEALTHCARE, INC. (VMD) with a score of 53.4/100, Innoviva, Inc. (INVA) with a score of 52.7/100, and JOHNSON & JOHNSON (JNJ) with a score of 51.7/100.

Comparing TERN against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full TERN vs S&P 500 (SPY) comparison to assess how Terns Pharmaceuticals, Inc. stacks up against the broader market across all factor dimensions.

TERN Next Earnings Date

No upcoming earnings date has been announced for Terns Pharmaceuticals, Inc. (TERN) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.

Should You Buy TERN? — Investment Thesis Summary

Terns Pharmaceuticals, Inc. presents a balanced picture with arguments on both sides. The quality score of 29/100 flags below-average profitability. The value score of 33/100 indicates premium valuation. Price momentum is positive at 79/100, suggesting the trend favors buyers. High volatility (stability score 36/100) increases portfolio risk.

In summary, Terns Pharmaceuticals, Inc. (TERN) earns a Hold rating with a composite score of 39.7/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on TERN stock.

Related Resources for TERN Investors

Explore more research and tools: TERN vs S&P 500 comparison, top Healthcare stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare TERN head-to-head with peers: TERN vs AZN, TERN vs SLGL, TERN vs VMD.