Strata Skin Sciences (SSKN) AI Stock Analysis

• Market Cap: $10.64M
• Dividend Yield: N/A
• Average Volume (3M): 6.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: 0.61%
• EPS Growth: 16.43%
• Country: US
• Employees: 106
• Sector: Healthcare
• Sector Strength: 48
• Industry: Medical - Devices
• EPS (TTM): -0.58
• Shares Outstanding: 4,171,161
• 10 Day Avg. Volume: 17,619
• 30 Day Avg. Volume: 6,955
• PEG Ratio: 0.25
• Price to Book (P/B): 1.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.09
• Enterprise Value/Market Cap: 1.83
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 1.02
• Enterprise Value/Ebitda: -2.07
• 1Y Price Target: $10.00
• Price Target Upside: 292.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Strata Skin Sciences exhibits notable financial challenges with persistent losses and declining equity, contributing to a low financial performance score. Technical analysis suggests a bearish trend, while valuation metrics indicate significant concerns due to negative earnings. Despite these challenges, the company shows positive developments in its earnings call and recent corporate events, which include strategic international growth and product advancements. These factors provide some support for the stock's overall outlook.

Positive Factors

International Expansion

International markets have gained traction, with expectations for continued momentum as the company re-educates partners on the technology and its benefits.

Turnaround Plan

The company's turnaround plan is showing early signs of success, focusing on direct-to-consumer marketing, cost efficiency, and improving revenue per device.

Valuation

Shares currently trade at an EV/revenue multiple of 0.5x our 2025 estimate, below the peer average, suggesting potential for valuation growth.

Negative Factors

Financial Performance

The company reported a GAAP loss per share significantly wider than expectations, mostly due to an impairment of goodwill charge.

Strata Skin Sciences Business Overview & Revenue Model

Company Description

STRATA Skin Sciences, Inc., a medical technology company, develops, commercializes, and markets products for the treatment of dermatologic conditions in the United States, Europe, the Middle East, Asia, Australia, South Africa, and Central and South America. The company operates in two segments, Dermatology Recurring Procedures and Dermatology Procedures Equipment. Its products include XTRAC and Pharos excimer lasers, VTRAC lamp systems, and TheraClear treatment systems that are used for the treatment of psoriasis, vitiligo, acne, and other skin conditions. The company distributes its products internationally through distributors, and domestically directly to physicians. The company was formerly known as MELA Sciences, Inc and changed its name to STRATA Skin Sciences, Inc. in January 2016. STRATA Skin Sciences, Inc. was incorporated in 1989 and is based in Horsham, Pennsylvania.

How the Company Makes Money

Strata Skin Sciences generates revenue primarily through the sale and leasing of its XTRAC Excimer Laser systems to dermatology clinics and healthcare providers. The company also earns income from the provision of maintenance services and consumables related to its laser systems. Additionally, Strata Skin Sciences may engage in strategic partnerships and collaborations, which can contribute to its revenue stream by expanding its market reach and enhancing its product offerings. The company focuses on maintaining strong relationships with healthcare providers to ensure continued use and adoption of its products, thereby securing recurring revenue from both sales and service agreements.

Strata Skin Sciences Financial Statement Overview

Summary

Strata Skin Sciences is facing significant financial challenges, characterized by persistent losses and declining equity. While there are some improvements in debt management and operating cash flow, the company needs to address its profitability issues and stabilize its cash flows to enhance its financial standing.

Income Statement

The company has shown a declining trend in revenue from the past year, with a slight growth in gross profit margin. However, the net profit margin remains negative, indicating continued losses. The EBIT and EBITDA margins are also negative, reflecting ongoing operational challenges.

Balance Sheet

The company's debt-to-equity ratio has improved due to reduced total debt, but the equity ratio has declined. Return on equity is negative, indicating that the company is not generating profit from its equity base. The balance sheet shows a reduction in total assets and stockholders' equity.

Cash Flow

The company has managed to improve its operating cash flow, but free cash flow remains negative. The free cash flow to net income ratio is also negative, indicating cash flow challenges. The operating cash flow to net income ratio shows some improvement, but further stability is needed.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
33.56M	33.36M	36.16M	29.98M	23.09M
	Gross Profit
19.08M	18.46M	21.77M	19.85M	14.13M
	EBIT
-9.26M	-8.60M	-4.56M	-4.40M	-4.08M
	EBITDA
-2.84M	-3.38M	1.13M	1.73M	-165.00K
	Net Income Common Stockholders
-10.09M	-10.83M	-5.55M	-2.71M	-4.41M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.26M	6.78M	5.43M	12.59M	10.60M
	Total Assets
36.16M	42.02M	52.27M	46.59M	46.78M
	Total Debt
16.44M	15.63M	8.44M	8.03M	10.88M
	Net Debt
9.18M	8.85M	3.01M	-4.56M	278.00K
	Total Liabilities
31.18M	29.33M	30.44M	21.18M	20.89M
	Stockholders Equity
4.97M	12.69M	21.83M	25.41M	25.89M
Cash Flow		Free Cash Flow
-1.45M	-5.54M	-4.66M	-2.15M	-63.00K
	Operating Cash Flow
188.00K	-519.00K	-1.11M	1.51M	2.10M
	Investing Cash Flow
-1.64M	-5.02M	-4.18M	-7.13M	-2.16M
	Financing Cash Flow
1.93M	6.86M	-500.00K	92.00K	2.55M

Strata Skin Sciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSKN, the sentiment is Negative. The current price of 2.55 is below the 20-day moving average (MA) of 2.58, below the 50-day MA of 2.62, and below the 200-day MA of 2.89, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 47.48 is Neutral, neither overbought nor oversold. The STOCH value of 53.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SSKN.

Strata Skin Sciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRTS	69 Neutral	$75.05M	11.29	12.70%	―	71.31%	1277.03%
VVOS	57 Neutral	$18.49M	―	-266.25%	―	8.91%	70.18%
Sector *	52 Neutral	$5.22B	3.55	-44.39%	2.82%	15.40%	-0.09%
SSKN	51 Neutral	$10.64M	―	-114.22%	―	0.61%	16.43%
BMRA	45 Neutral	$9.04M	―	-72.70%	―	5.05%	26.13%
CODX	43 Neutral	$11.52M	―	-56.80%	―	-91.22%	11.84%
PAVM	36 Underperform	$12.27M	―	-499.57%	―	22.15%	―

Strata Skin Sciences Corporate Events

Strata Skin Sciences Reports Q4 2024 Financial Results

On March 27, 2025, STRATA Skin Sciences announced its financial results for the fourth quarter and full year of 2024. The company reported a 10% increase in fourth-quarter revenue compared to the previous year, driven by international growth and improvements in equipment revenue. Despite a slight overall increase in annual revenue, STRATA achieved significant operational improvements, including a reduction in operating expenses and an increase in gross margin. The company also renewed key distributor agreements in China and Japan, and took legal action against competitors for unfair practices. These developments reflect STRATA’s strategic focus on enhancing operational efficiency and expanding its international market presence.

Strata Skin Sciences Highlights XTRAC® Laser Study Success

On March 20, 2025, STRATA Skin Sciences announced the publication of a study highlighting the superior clinical outcomes of their XTRAC® Excimer Laser over other UVB light sources like Excimer Light. The study, conducted by researchers from Nippon Medical School, demonstrated that the excimer laser’s unique technological characteristics, such as deeper penetration and greater activation of melanocyte lineage cells, result in better pigmentation and fewer side effects. This reinforces STRATA’s commitment to providing effective dermatological treatments and underscores their growing presence in Japan, where they have expanded significantly since 2019.