Dermapharm Holding SE (DMP) AI Stock Analysis

• Market Cap: €1.78B
• Dividend Yield: 2.46%
• Average Volume (3M): 18.50K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.50
• 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: -7.10% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: €36.00 ▼(-1.64% Downside)

Dermapharm Holding SE's overall stock score is driven primarily by its stable financial performance and reasonable valuation. The company's operational efficiency and cash flow generation are strong points, but high leverage and declining revenue growth rate pose risks. Technical indicators suggest a neutral market sentiment, neither strongly bullish nor bearish.

Positive Factors

Operational Efficiency

Operational efficiency allows Dermapharm to maintain profitability and competitive pricing, enhancing its market position and long-term sustainability.

Cash Flow Generation

Strong cash flow generation supports ongoing investments in R&D and expansion, providing a solid foundation for future growth and financial stability.

Product Portfolio Diversification

A diverse product portfolio reduces dependency on any single revenue stream, mitigating risks and enhancing resilience against market fluctuations.

Negative Factors

High Leverage

High leverage can increase financial risk, limit flexibility, and strain cash flows, potentially impacting long-term financial health.

Declining Revenue Growth

Declining revenue growth may signal challenges in market expansion or competitive pressures, affecting future profitability and market share.

Net Profit Margin Decrease

A decrease in net profit margin can indicate inefficiencies or increased competition, potentially impacting long-term profitability and shareholder returns.

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 generates revenue through multiple streams, primarily from the sale of its proprietary prescription drugs and OTC products. The company also engages in licensing agreements, allowing it to earn royalties from products developed in collaboration with other pharmaceutical firms. Additionally, Dermapharm benefits from partnerships with healthcare providers and distributors, which facilitate market penetration and broaden its product reach. The company's strategic focus on innovation and product development, alongside its established distribution networks, plays a crucial role in driving its earnings.

Dermapharm Holding SE Financial Statement Overview

Summary

Dermapharm Holding SE demonstrates a stable financial position with strengths in operational efficiency and cash flow generation. However, the high leverage and declining revenue growth rate are areas of concern that need to be addressed to ensure long-term financial stability and growth.

Income Statement

Dermapharm Holding SE shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth rate, which is concerning. However, the company maintains a healthy gross profit margin and a stable EBIT margin, reflecting operational efficiency. The net profit margin has decreased, suggesting potential challenges in managing costs or pricing pressures.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which could pose financial risks. However, the company has shown improvement in return on equity, suggesting effective use of equity to generate profits. The equity ratio is moderate, reflecting a balanced asset structure.

Cash Flow

The cash flow statement highlights strong free cash flow growth in the TTM period, which is a positive indicator of financial health. The operating cash flow to net income ratio is stable, suggesting efficient cash generation from operations. However, the free cash flow to net income ratio has slightly decreased, indicating potential challenges in converting profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.18B	1.18B	1.14B	1.02B	942.91M	793.83M
Gross Profit	772.87M	767.07M	719.16M	660.83M	620.69M	463.48M
EBITDA	306.29M	320.91M	265.55M	329.81M	358.10M	183.81M
Net Income	107.20M	113.79M	62.37M	134.24M	209.58M	85.83M
Balance Sheet
Total Assets	2.14B	2.08B	2.16B	1.41B	1.41B	1.22B
Cash, Cash Equivalents and Short-Term Investments	165.90M	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	1.53B	1.47B	1.62B	880.34M	907.13M	899.81M
Stockholders Equity	608.25M	604.42M	539.21M	531.59M	497.32M	321.97M
Cash Flow
Free Cash Flow	175.35M	163.14M	177.88M	249.52M	189.16M	90.30M
Operating Cash Flow	215.52M	201.38M	219.42M	288.53M	250.37M	131.10M
Investing Cash Flow	-33.34M	-29.61M	-415.43M	-99.01M	-129.35M	-105.91M
Financing Cash Flow	-182.94M	-209.17M	204.54M	-199.77M	-80.98M	-14.09M

Dermapharm Holding SE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:DMP, the sentiment is Positive. The current price of 36.6 is above the 20-day moving average (MA) of 34.30, above the 50-day MA of 33.37, and above the 200-day MA of 34.87, indicating a bullish trend. The MACD of 0.72 indicates Negative momentum. The RSI at 74.47 is Negative, neither overbought nor oversold. The STOCH value of 67.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:DMP.

Dermapharm Holding SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PSG	76 Outperform	€384.00M	19.73	52.68%	0.16%	15.20%	6.77%
ILM1	70 Outperform	$312.70M	16.61	4.18%	―	9.27%	65.65%
DMP	67 Neutral	€1.78B	16.57	18.82%	2.46%	0.11%	28.09%
93M1	66 Neutral	€84.13M	―	-43.43%	5.80%	180.19%	-196.45%
APPH	58 Neutral	€92.65M	138.68	2.09%	―	27.42%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%