Dermapharm Holding SE (DMP) AI Stock Analysis

• Market Cap: €1.92B
• Dividend Yield: 2.46%
• Average Volume (3M): 24.62K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.52
• Revenue Growth: 6.24%
• EPS Growth: 83.05%
• Country: DE
• Employees: 3,610
• Sector: Healthcare
• Sector Strength: 53
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.62
• Shares Outstanding: 53,840,000
• 10 Day Avg. Volume: 23,292
• 30 Day Avg. Volume: 24,622
• PEG Ratio: -0.42
• Price to Book (P/B): 3.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €44.67
• Price Target Upside: 27.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: €40.00 ▲(14.12%Upside)

Dermapharm Holding SE has a solid financial foundation, with strong revenue growth and healthy cash flow generation. However, technical indicators suggest potential bearish momentum, tempering the overall outlook. The valuation appears fair, supported by a reasonable P/E ratio and dividend yield. The absence of significant earnings call data and corporate events limits additional insights.

Positive Factors

Earnings

Dermapharm Holding reported a better-than-expected end to the year with a 7% earnings and 4% sales beat in the fourth quarter.

Financial Performance

The adjusted EBITDA for the fiscal year exceeded expectations, supported by Montavit.

Negative Factors

Earnings Outlook

The outlook on revenue and earnings sits below consensus with expected low single-digit revisions.

Revenue Outlook

The new fiscal year guidance appears conservative with only flat revenue growth projected.

Dermapharm Holding SE Business Overview & Revenue Model

Company Description

Dermapharm Holding SE, together with its subsidiaries, engages in the off-patent branded pharmaceuticals business in Germany and internationally. It operates through three segments: Branded Pharmaceuticals and Other Healthcare Products, Parallel Import Business, and Herbal Extracts. The company develops, manufactures, licenses, markets, and sells branded generics, over-the-counter drugs, non-prescription natural remedies, and other healthcare products. It also offers healthcare products in the areas of vitamins, minerals, food supplements, dermatology, allergology, pain and inflammation treatment, cardiovascular support, gynecology, and urology primarily under the Dekristol, Dekristolvit, Allergovit, and Tromcardin brands. In addition, the company provides medical devices under the bite away and Herpotherm names; Momekort, a nasal spray used to treat allergy symptoms; and Azedil, a nasal spray or eye drop. Further, it imports originator pharmaceuticals under the axicorp brand; and offers herbal extracts and natural active ingredients for phytopharmaceuticals, nutraceuticals, and cosmetics. It serves pharmaceutical wholesalers, pharmacies, hospitals, and health food stores. The company was founded in 1991 and is headquartered in Grünwald, Germany. Dermapharm Holding SE is a subsidiary of Themis Beteiligungs-Aktiengesellschaft.

How the Company Makes Money

Dermapharm Holding SE generates revenue primarily through the sale of its pharmaceutical and healthcare products. The company's revenue model is centered around the development and commercialization of branded pharmaceuticals, which are sold to pharmacies, healthcare providers, and directly to consumers. Key revenue streams include sales of dermatological products, allergy treatments, and vitamins. Additionally, Dermapharm benefits from strategic partnerships and acquisitions that expand its product offerings and market reach. The company leverages its strong research and development capabilities to continuously innovate and introduce new products, which contributes to its earnings growth. International expansion and distribution agreements also play a significant role in increasing the company's revenue.

Dermapharm Holding SE Financial Statement Overview

Summary

Dermapharm Holding SE presents a strong financial position with consistent revenue growth and solid operational performance. The company demonstrates effective cost management with a robust gross profit margin, although net profit margin fluctuations indicate some volatility. The balance sheet reflects stable equity growth, but increased debt reliance could pose risks. Positive operating and free cash flows highlight the ability to support future investments and debt repayments.

Income Statement

Dermapharm Holding SE has shown strong revenue growth over the years, with a notable increase from €700.9M in 2019 to €1.18B in 2024. The gross profit margin remains robust, indicating effective cost management. However, the net profit margin shows fluctuations, indicating some volatility in converting revenue into net income. Despite this, EBIT and EBITDA margins are healthy, signifying strong operational performance.

Balance Sheet

The balance sheet reflects a stable equity position with a growing stockholders' equity over the years, from €278.6M in 2019 to €604.4M in 2024. The debt-to-equity ratio indicates an increased reliance on debt, which could pose risks if not managed prudently. However, the equity ratio stands firm, demonstrating a balanced asset financing structure.

Cash Flow

Operating cash flow has been consistently positive, showing the company's ability to generate cash from operations. Free cash flow has also grown, supporting future investments and debt repayments. The free cash flow to net income ratio highlights efficient cash conversion, although some volatility is present in annual cash flows due to varying capital expenditures.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.18B	1.14B	1.02B	942.91M	793.83M
	Gross Profit
767.07M	719.16M	660.83M	620.69M	463.48M
	EBIT
216.93M	182.89M	243.69M	298.47M	136.85M
	EBITDA
320.91M	265.55M	329.81M	358.10M	186.57M
	Net Income Common Stockholders
113.79M	62.37M	134.24M	209.58M	85.83M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
121.71M	159.54M	161.36M	172.06M	121.66M
	Total Assets
2.08B	2.16B	1.41B	1.41B	1.22B
	Total Debt
979.61M	1.08B	516.45M	580.30M	606.80M
	Net Debt
858.42M	921.66M	366.53M	419.98M	486.18M
	Total Liabilities
1.47B	1.62B	880.34M	907.13M	899.81M
	Stockholders Equity
604.42M	539.21M	531.59M	497.32M	321.97M
Cash Flow		Free Cash Flow
163.14M	177.88M	249.52M	189.16M	90.30M
	Operating Cash Flow
201.38M	219.42M	288.53M	250.37M	131.10M
	Investing Cash Flow
-29.61M	-415.43M	-99.01M	-129.35M	-105.91M
	Financing Cash Flow
-209.17M	204.54M	-199.77M	-80.98M	-14.09M

Dermapharm Holding SE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 35.05 is below the 20-day moving average (MA) of 35.55, below the 50-day MA of 36.70, and below the 200-day MA of 36.59, indicating a bearish trend. The MACD of -0.36 indicates Negative momentum. The RSI at 41.76 is Neutral, neither overbought nor oversold. The STOCH value of 24.80 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DMP	72 Outperform	€1.92B	18.56	16.97%	2.46%	6.24%	83.05%
Sector *	54 Neutral	$5.34B	3.36	-45.10%	3.39%	16.81%	-0.03%
MEDOF		$333.11M	20.94	2.99%	―	―	―
PHH2		€884.38M	8.15	9.81%	3.21%	―	―
APPH	58 Neutral	€92.65M	120.44	2.46%	―	31.12%	―
PSG		€343.20M	17.07	48.46%	4.75%	―	―
93M1		€83.49M	2.61	12.12%	6.15%	―	―