Journey Medical Corp (DERM) AI Stock Analysis

• Market Cap: $151.66M
• Dividend Yield: N/A
• Average Volume (3M): 107.64K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.28
• Revenue Growth: -29.69%
• EPS Growth: -105.88%
• Country: US
• Employees: 41
• Sector: Healthcare
• Sector Strength: 47
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.18
• Shares Outstanding: 17,295,769
• 10 Day Avg. Volume: 89,735
• 30 Day Avg. Volume: 107,645
• PEG Ratio: 0.03
• Price to Book (P/B): 1.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.00
• Enterprise Value/Market Cap: 0.16
• Enterprise Value/Revenue: 0.10
• Enterprise Value/Gross Profit: 0.66
• Enterprise Value/Ebitda: -1.45
• 1Y Price Target: $9.33
• Price Target Upside: 43.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 51 Neutral
• Price Target: $6.50 ▼(-0.15%Downside)

The overall stock score is heavily influenced by the company's financial challenges, including declining revenues and negative cash flow. However, the recent successful launch of Emrosi and improved strategic focus provide a positive outlook. The technical analysis and valuation suggest caution, as the stock is experiencing mixed momentum signals and lacks profitability.

Positive Factors

Market Positioning

DFD-29 is expected to be well-positioned to drive substantial long-term growth based on its superior data compared to Oracea.

Product Launch

The company expects a full commercial launch in early April, following the availability of the launch product and a national sales meeting.

Negative Factors

Stock Performance

Shares have traded down 14% since the product’s approval in November and are now valued at a 55% discount to peers on a 2026 EV/revenue basis.

Journey Medical Corp Business Overview & Revenue Model

Company Description

Journey Medical Corporation focuses on the development and commercialization of pharmaceutical products for the treatment of dermatological conditions in the United States. The company's marketed products include Qbrexza, a medicated cloth towelette for the treatment of primary axillary hyperhidrosis; Accutane, an oral isotretinoin drug to treat severe recalcitrant acne; Targadox, an oral doxycycline drug for adjunctive therapy for severe acne; Ximino, an oral minocycline drug for the treatment of moderate to severe acne; and Exelderm cream and solution for topical use. It also sells doxycycline hyclate tablets, minocycline hydrocholoride capsules, and sulconazole nitrate cream and solution. The company was formerly known as Coronado Dermatology, Inc. and changed its name to Journey Medical Corporation. Journey Medical Corporation was incorporated in 2014 and is headquartered in Scottsdale, Arizona.

How the Company Makes Money

Journey Medical Corp generates revenue through the sale of its dermatological products to healthcare providers, pharmacies, and direct distribution channels. Key revenue streams include the commercialization of prescription and over-the-counter dermatology products that address conditions such as acne, rosacea, and other skin disorders. The company may also engage in partnerships or collaborations with other pharmaceutical companies, leveraging their distribution networks and market presence to expand its product reach and increase sales. Additionally, factors such as product innovation, regulatory approvals, and market demand for effective dermatological treatments contribute significantly to Journey Medical Corp's earnings.

Journey Medical Corp Financial Statement Overview

Summary

Journey Medical Corp is facing financial challenges with declining revenues and negative profitability margins. Despite effective debt management, cash flow difficulties and operational inefficiencies are significant concerns. Improvement in these areas is necessary for better financial health.

Income Statement

The company experienced a significant decline in revenue from $79.2M to $56.1M over the past year, marking a revenue shrinkage of approximately 29.1%. The gross profit margin is stable as the gross profit equaled the total revenue. However, the net profit margin is negative due to persistent losses, with a net income of -$14.7M. EBIT and EBITDA margins are negative, highlighting operational inefficiencies and challenges in covering operating expenses with revenue.

Balance Sheet

The debt-to-equity ratio decreased, reflecting better leverage management, with total debt significantly reduced from $17.7M to $201K. The equity ratio stands at 25%, indicating moderate financial stability. However, the company has faced a decline in stockholders' equity over the past year. The return on equity (ROE) remains negative, primarily due to continued net losses.

Cash Flow

Operating cash flow turned negative at -$9.1M from a positive $5.2M last year, indicating cash flow challenges. The free cash flow also declined significantly, from $240K to -$9.1M. The operating cash flow to net income ratio is unfavorable due to negative figures. Despite these challenges, financing activities have provided a positive cash influx, improving liquidity.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
56.24M	56.13M	79.18M	73.67M	63.13M	44.53M
	Gross Profit
37.39M	35.26M	52.52M	42.89M	31.05M	29.94M
	EBIT
-6.91M	-13.68M	-2.07M	-27.52M	-25.34M	7.85M
	EBITDA
-1.43M	-8.40M	1.92M	-23.18M	-32.77M	9.37M
	Net Income Common Stockholders
-8.30M	-14.67M	-3.85M	-29.63M	-43.99M	5.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
21.07M	20.30M	27.44M	32.00M	49.08M	8.25M
	Total Assets
84.96M	80.24M	76.85M	105.16M	97.28M	51.91M
	Total Debt
25.17M	25.08M	17.73M	22.96M	910.00K	5.40M
	Net Debt
4.10M	4.78M	-9.71M	-9.04M	-48.17M	-2.84M
	Total Liabilities
63.42M	60.17M	56.50M	88.18M	55.24M	41.61M
	Stockholders Equity
21.54M	20.07M	20.35M	16.98M	42.04M	10.29M
Cash Flow		Free Cash Flow
-21.94M	-9.13M	240.00K	-33.53M	-12.18M	3.93M
	Operating Cash Flow
-6.94M	-9.13M	5.24M	-13.53M	-2.18M	5.13M
	Investing Cash Flow
-15.00M	-15.00M	-5.00M	-20.00M	-10.00M	-1.20M
	Financing Cash Flow
18.95M	16.99M	-4.80M	16.46M	53.02M	-487.00K

Journey Medical Corp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.51
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DERM, the sentiment is Neutral. The current price of 6.51 is below the 20-day moving average (MA) of 7.18, below the 50-day MA of 6.95, and above the 200-day MA of 5.67, indicating a neutral trend. The MACD of -0.16 indicates Positive momentum. The RSI at 40.11 is Neutral, neither overbought nor oversold. The STOCH value of 15.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DERM.

Journey Medical Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPIX	54 Neutral	$65.08M	―	-11.67%	―	5.82%	59.86%
Sector *	51 Neutral	$7.34B	0.29	-60.38%	2.38%	17.46%	1.71%
DERM	51 Neutral	$151.66M	―	-48.14%	―	-29.69%	-105.88%
ESPR	50 Neutral	$212.07M	―	23.44%	―	12.99%	17.78%
OPTN	50 Neutral	$97.22M	―	75.79%	―	10.58%	34.44%
IRWD	46 Neutral	$113.53M	85.74	-8.02%	―	-23.18%	97.12%
BIOA	33 Underperform	$155.59M	―	-30.20%	―	―	―

Journey Medical Corp Corporate Events

Journey Medical Corp Appoints New Chief Operating Officer

On April 1, 2025, Journey Medical Corporation appointed Ramsey Alloush as Chief Operating Officer while he continues as General Counsel. Alloush, who joined the company in 2020, has played a significant role in its growth and strategic initiatives, including leading the IPO in 2021. His appointment comes at a pivotal time as the company prepares to launch Emrosi™, a new dermatological treatment expected to drive the company’s growth and redefine market standards.