Dermapharm Holding SE (DMP) AI Stock Analysis

• Market Cap: €1.88B
• Dividend Yield: 2.34%
• Average Volume (3M): 18.50K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.47
• Revenue Growth: 0.11%
• EPS Growth: 28.09%
• Country: DE
• Employees: 3,610
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.76
• Shares Outstanding: 53,840,000
• 10 Day Avg. Volume: 17,993
• 30 Day Avg. Volume: 18,498
• PEG Ratio: 0.22
• Price to Book (P/B): 3.47
• Price to Sales (P/S): 1.77
• P/FCF Ratio: 12.84
• 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: €34.00
• Price Target Upside: -8.85% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: €41.00 ▲(9.92% Upside)

Dermapharm Holding SE's stock is supported by strong operational efficiency and a positive technical outlook, with the stock trading above key moving averages. The valuation is reasonable with a fair P/E ratio and a decent dividend yield. However, challenges such as declining revenue growth, reduced net profit margins, and rising debt levels pose risks that need to be addressed. The absence of earnings call and corporate events data limits the analysis to financial performance, technical analysis, and valuation.

Positive Factors

Operational Efficiency

Strong operational efficiency with stable gross profit margins and a solid EBIT margin indicates effective cost management and profitability.

Product Portfolio

A diverse product portfolio across various therapeutic areas supports revenue stability and reduces dependency on single product lines.

Free Cash Flow

Strong free cash flow generation relative to net income indicates robust cash management, supporting reinvestment and debt servicing.

Negative Factors

Revenue Growth

Inconsistent revenue growth and recent declines suggest challenges in maintaining sales momentum, potentially impacting long-term growth.

Rising Debt Levels

Increased leverage raises financial risk, potentially limiting flexibility and increasing vulnerability to economic downturns.

Net Profit Margin

Declining net profit margins indicate pressure on profitability, which could affect the company's ability to invest in growth and innovation.

Dermapharm Holding SE Business Overview & Revenue Model

Company Description

Dermapharm Holding SE (DMP) is a leading German pharmaceutical company specializing in the development, manufacturing, and marketing of high-quality generic and specialty pharmaceuticals. The company operates primarily in the pharmaceutical sector, focusing on various therapeutic areas including dermatology, oncology, and neurology. Dermapharm offers a diverse portfolio of products, including prescription medications, over-the-counter drugs, and active pharmaceutical ingredients, leveraging its robust research and development capabilities to address unmet medical needs.

How the Company Makes Money

Dermapharm generates revenue primarily through the sale of its pharmaceutical products, which includes both generic and specialty medications. The company's revenue model is driven by the production and distribution of its extensive product portfolio across various therapeutic areas. Key revenue streams include sales from prescription medications, over-the-counter products, and partnerships with other pharmaceutical companies for the development and commercialization of new drugs. Additionally, Dermapharm benefits from economies of scale in its manufacturing processes, allowing it to maintain competitive pricing while enhancing profitability. Strategic collaborations and licensing agreements with healthcare providers and other industry partners further contribute to the company's financial performance, enabling it to expand its market reach and diversify its product offerings.

Dermapharm Holding SE Financial Statement Overview

Summary

Dermapharm Holding SE demonstrates strong operational efficiency with consistent gross profit margins and a solid EBIT margin. However, declining revenue growth and net profit margins, coupled with rising debt levels, present challenges. Cash flow metrics indicate potential liquidity issues, though the company maintains a strong free cash flow to net income ratio. Overall, while the company is operationally sound, it faces profitability and leverage challenges that need addressing.

Income Statement

Dermapharm Holding SE shows a stable gross profit margin of around 65% over the years, indicating strong cost management. However, the net profit margin has decreased from 22.2% in 2021 to 9.1% in the TTM, reflecting pressure on profitability. Revenue growth has been inconsistent, with a recent decline of 1.4% in the TTM, suggesting challenges in maintaining sales momentum. Despite these issues, the company maintains a healthy EBIT margin of 18.6% in the TTM, showcasing operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.66 in the TTM, indicating higher leverage and potential risk if earnings do not improve. Return on equity has decreased from 42.1% in 2021 to 17.6% in the TTM, showing reduced efficiency in generating profits from equity. The equity ratio remains stable, suggesting a balanced asset structure, but the rising debt levels could pose future challenges.

Cash Flow

Operating cash flow has decreased, with a coverage ratio of 0.60 in the TTM, indicating less cash generation relative to net income. Free cash flow growth has been negative, with a decline of 17.8% in the TTM, highlighting potential liquidity concerns. However, the free cash flow to net income ratio remains strong at 81.4%, suggesting that the company still generates adequate cash relative to its earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.16B	1.18B	1.14B	1.02B	942.91M	793.83M
Gross Profit	683.97M	767.07M	719.16M	660.83M	620.69M	463.48M
EBITDA	311.71M	320.91M	265.55M	329.81M	358.10M	183.81M
Net Income	116.03M	113.79M	62.37M	134.24M	209.58M	85.83M
Balance Sheet
Total Assets	2.12B	2.08B	2.16B	1.41B	1.41B	1.22B
Cash, Cash Equivalents and Short-Term Investments	146.58M	121.71M	159.54M	161.36M	172.06M	121.66M
Total Debt	1.01B	979.61M	1.08B	516.45M	580.30M	606.80M
Total Liabilities	1.47B	1.47B	1.62B	880.34M	907.13M	899.81M
Stockholders Equity	649.22M	604.42M	539.21M	531.59M	497.32M	321.97M
Cash Flow
Free Cash Flow	144.16M	163.14M	177.88M	249.52M	189.16M	90.30M
Operating Cash Flow	186.28M	201.38M	219.42M	288.53M	250.37M	131.10M
Investing Cash Flow	-46.22M	-29.61M	-415.43M	-99.01M	-129.35M	-105.91M
Financing Cash Flow	-110.07M	-209.17M	204.54M	-199.77M	-80.98M	-14.09M

Dermapharm Holding SE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 37.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 37.3 is above the 20-day moving average (MA) of 37.00, above the 50-day MA of 37.20, and above the 200-day MA of 34.87, indicating a bearish trend. The MACD of -0.59 indicates Positive momentum. The RSI at 31.85 is Neutral, neither overbought nor oversold. The STOCH value of 11.63 is Positive, 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	71 Outperform	€1.88B	16.38	18.82%	2.34%	0.11%	28.09%
93M1	70 Outperform	€103.61M	-0.90	-43.43%	5.31%	180.19%	-196.45%
ILM1	70 Outperform	$408.09M	18.33	4.18%	―	9.27%	65.65%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%