Dermapharm Holding SE (DMP) AI Stock Analysis

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Dermapharm Holding SE

(XETRA:DMP)

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Rating:65Neutral

Price Target:EUR 43.00▲(23.03% Upside)

Action:reiterated

Date:08/27/26

The score is driven primarily by improving financial quality—stronger profitability and a materially de-risked balance sheet—partly offset by weakening free cash flow momentum. Technical signals remain soft (below key moving averages with negative MACD), while valuation is moderately supportive with a reasonable P/E and a ~2.2% dividend yield.

Positive Factors

Improved profitability and renewed growthThe return to revenue growth alongside higher net and EBIT margins indicates improving operating execution. If sustained, stronger profitability can support reinvestment, resilience against cost pressure, and earnings growth across Dermapharm’s branded and manufacturing businesses.

Negative Factors

Declining free cash flow momentumAlthough cash generation remains positive, the decline in free cash flow and weaker conversion from earnings reduce financial flexibility. Persistent deterioration could limit investment capacity, slow deleveraging, and make reported profit growth less valuable to shareholders.

Dermapharm Holding SE (DMP) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 1.73B
Dividend Yield: 2.52%
Average Volume (3M): 32.37K
Price to Earnings (P/E): 12.6
Beta (1Y): 0.36
Revenue Growth: 0.39%
EPS Growth: 38.58%
Country: Germany
Employees: 3,619
Sector: Healthcare
Sector Strength: 51
Industry: Drug Manufacturers - Specialty & Generic

Dermapharm Holding SE Business Overview & Revenue Model

Company Description

Dermapharm Holding SE, alongside its group companies, specializes in the off-patent branded pharmaceutical market, serving both German and international clients. The company’s operations are organized into three primary divisions: Branded Pharmaceuti...

How the Company Makes Money

Dermapharm makes money primarily by selling pharmaceutical and healthcare products and by providing manufacturing-related services. Key revenue streams include: (1) Branded pharmaceuticals (Rx and other drug products): Dermapharm generates revenue fr...

Dermapharm Holding SE Financial Statement Overview

Summary

Operating performance improved with modest TTM revenue growth (~1.1%) and better profitability (higher net and EBIT margins vs 2025). The balance sheet is notably stronger with much lower leverage (debt-to-equity ~0.29) and solid ROE (~22.4%). Offsetting this, free cash flow is still positive but weakening (TTM FCF down ~13.6%) and cash conversion is less robust than earlier peak years, alongside historical margin volatility.

Income Statement

73Positive

Balance Sheet

76Positive

Cash Flow

62Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Mar 2022
Income Statement
Total Revenue	1.18B	1.16B	1.18B	1.14B	1.02B	942.91M
Gross Profit	410.33M	391.71M	767.07M	719.16M	660.83M	620.69M
EBITDA	337.90M	314.31M	317.20M	265.55M	329.81M	356.97M
Net Income	146.54M	132.41M	113.79M	62.37M	134.24M	209.58M
Balance Sheet
Total Assets	2.24B	2.20B	2.08B	2.16B	1.41B	1.41B
Cash, Cash Equivalents and Short-Term Investments	195.56M	203.41M	121.71M	159.54M	161.36M	172.06M
Total Debt	1.17B	1.05B	979.61M	1.08B	516.45M	580.30M
Total Liabilities	1.71B	1.50B	1.47B	1.62B	880.34M	907.13M
Stockholders Equity	536.71M	694.38M	604.42M	539.21M	531.59M	497.32M
Cash Flow
Free Cash Flow	171.43M	139.39M	163.14M	177.88M	249.52M	189.16M
Operating Cash Flow	219.81M	181.51M	201.38M	219.42M	288.53M	250.37M
Investing Cash Flow	-106.65M	-110.03M	-29.61M	-415.43M	-99.01M	-129.35M
Financing Cash Flow	-81.06M	13.32M	-209.17M	204.54M	-199.77M	-80.98M

Dermapharm Holding SE Technical Analysis

Technical Analysis SentimentNegative

Last Price34.95

Price Trends

50DMA38.44Negative

100DMA40.28Negative

200DMA41.64Negative

Market Momentum

MACD-0.31Positive

RSI29.00Positive

STOCH38.60Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:DMP, the sentiment is Negative. The current price of 34.95 is below the 20-day moving average (MA) of 38.24, below the 50-day MA of 38.44, and below the 200-day MA of 41.64, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 29.00 is Positive, neither overbought nor oversold. The STOCH value of 38.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:DMP.

Dermapharm Holding SE Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

DE:DMP against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DE:MRK	68Neutral	EUR 65.91B	27.18	8.08%	1.48%	-0.40%	-17.22%
DE:DMP	65Neutral	EUR 1.91B	12.62	22.38%	2.52%	0.39%	38.58%
DE:ILM1	59Neutral	EUR 289.74M	25.36	2.16%	―	8.40%	-61.68%
DE:B8FK	53Neutral	EUR 18.29M	-1.54	-127.78%	―	―	―
Sector *	51Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
DE:FYB	45Neutral	EUR 264.39M	-10.56	-6.41%	―	18.28%	85.20%

* Healthcare Sector Average

Performance Comparison

DE:DMP and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:DMP	Dermapharm Holding	34.95	1.19	3.51%
DE:B8FK	Biofrontera AG	3.00	0.33	12.36%
DE:MRK	Merck KGaA	148.15	32.91	28.56%
DE:ILM1	Medios AG	11.16	-3.32	-22.93%
DE:PHH2	PAUL HARTMANN AG	189.00	-27.26	-12.61%
DE:FYB	Formycon AG	15.00	-5.75	-27.71%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 27, 2026

Dermapharm Holding SE AI Stock Analysis