Journey Medical Corp (DERM) AI Stock Analysis

• Market Cap: $239.68M
• Dividend Yield: N/A
• Average Volume (3M): 166.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.22
• Revenue Growth: -27.40%
• EPS Growth: -475.41%
• Country: US
• Employees: 41
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.16
• Shares Outstanding: 20,309,843
• 10 Day Avg. Volume: 228,197
• 30 Day Avg. Volume: 166,630
• PEG Ratio: -0.02
• Price to Book (P/B): 3.98
• Price to Sales (P/S): 1.42
• P/FCF Ratio: -8.75
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 3.05
• Enterprise Value/Gross Profit: 4.52
• Enterprise Value/Ebitda: -144.96
• 1Y Price Target: $13.00
• Price Target Upside: 45.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: $8.50 ▼(-5.03% Downside)

The overall stock score reflects significant financial challenges, despite positive technical indicators and a successful product launch. The financial performance is the most critical factor, with ongoing losses and cash flow issues weighing heavily. Positive momentum and earnings call highlights provide some optimism, but valuation concerns persist.

Positive Factors

Successful Product Launch

The successful launch of EMROSI demonstrates the company's ability to innovate and capture market share, which is crucial for long-term growth and competitiveness in the dermatology sector.

Improved Gross Margins

Improved gross margins indicate better cost management and product mix, enhancing profitability and providing a stronger financial foundation for sustainable growth.

Expanded Payer Access

Expanded payer access for EMROSI enhances market penetration and revenue potential, supporting long-term growth by increasing the product's accessibility to a larger patient base.

Negative Factors

Declining Revenue

The significant decline in revenue highlights challenges in maintaining sales momentum, which could impact the company's ability to fund operations and invest in future growth.

Negative Cash Flow

Negative operating cash flow indicates liquidity challenges, which can constrain the company's ability to invest in new opportunities and manage financial obligations effectively.

Increased SG&A Expenses

Rising SG&A expenses could pressure margins and profitability, requiring the company to optimize costs to maintain financial health and support long-term strategic initiatives.

Journey Medical Corp Business Overview & Revenue Model

Company Description

Journey Medical Corp (DERM) is a specialty pharmaceutical company focused on developing and commercializing innovative treatments for dermatological conditions. The company operates within the healthcare sector, primarily targeting dermatology, where it offers a range of prescription products. Journey Medical aims to improve the quality of life for patients suffering from skin disorders by providing effective, safe, and accessible medical solutions.

How the Company Makes Money

Journey Medical Corp generates revenue primarily through the sales of its dermatological prescription products. The company has established a business model that includes direct sales to healthcare providers and pharmacies, as well as partnerships with larger pharmaceutical companies for distribution and marketing. Additionally, Journey Medical may benefit from licensing agreements and collaborations that allow it to expand its product offerings and market reach. The company’s revenue is further bolstered by its focus on developing new formulations and treatments that address unmet medical needs in dermatology, which can lead to increased market share and higher sales.

Journey Medical Corp Financial Statement Overview

Summary

Journey Medical Corp is facing financial challenges with declining revenues, negative profitability margins, and worsening cash flow positions. Despite effective debt management, operational inefficiencies and cash flow difficulties are significant concerns. Improvement in revenue growth and cost optimization is needed.

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	56.40M	56.13M	79.18M	73.67M	63.13M	44.53M
Gross Profit	38.08M	35.26M	52.52M	42.89M	31.05M	29.94M
EBITDA	-1.19M	-8.40M	1.92M	-23.18M	-32.77M	9.37M
Net Income	-8.74M	-14.67M	-3.85M	-29.63M	-43.99M	5.28M
Balance Sheet
Total Assets	81.16M	80.24M	76.85M	105.16M	97.28M	51.91M
Cash, Cash Equivalents and Short-Term Investments	20.29M	20.30M	27.44M	32.00M	49.08M	8.25M
Total Debt	25.28M	25.70M	17.73M	22.96M	910.00K	9.92M
Total Liabilities	61.91M	60.17M	56.50M	88.18M	55.24M	41.61M
Stockholders Equity	19.25M	20.07M	20.35M	16.98M	42.04M	10.29M
Cash Flow
Free Cash Flow	-2.71M	-9.13M	240.00K	-33.53M	-12.18M	3.93M
Operating Cash Flow	-2.71M	-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	14.09M	16.99M	-4.80M	16.46M	53.02M	-487.00K

Journey Medical Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DERM, the sentiment is Positive. The current price of 8.95 is above the 20-day moving average (MA) of 8.02, above the 50-day MA of 7.53, and above the 200-day MA of 6.78, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 66.67 is Neutral, neither overbought nor oversold. The STOCH value of 87.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DERM.

Journey Medical Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DERM	60 Neutral	$239.68M	―	-57.22%	―	-27.40%	-475.41%
IRWD	55 Neutral	$311.87M	―	―	―	-10.42%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ESPR	51 Neutral	$635.91M	―	―	―	2.83%	13.61%
CPIX	51 Neutral	$39.79M	-12.47	-13.08%	―	12.21%	69.91%
OPTN	50 Neutral	―	―	―	―	10.58%	34.44%
BIOA	33 Underperform	$267.80M	-3.34	-25.64%	―	―	―

Journey Medical Corp Corporate Events

Journey Medical Corp Amends Credit Agreement with SWK

On September 25, 2025, Journey Medical Corporation amended its Credit Agreement with SWK Funding LLC, extending the maturity date of a $25 million term loan to June 27, 2028. The amendment also adjusted repayment terms, with principal repayments beginning in February 2026 unless the company’s revenue exceeds $60 million by the end of 2025, in which case repayments would start in February 2027.

The most recent analyst rating on (DERM) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Journey Medical Corp stock, see the DERM Stock Forecast page.

Journey Medical Corp Enters New Sales Agreement

On August 28, 2025, Journey Medical Corporation entered into a new At Market Issuance Sales Agreement with B. Riley Securities, Inc. and Lake Street Capital Markets, LLC, allowing the company to sell up to 3,750,000 shares of its common stock. This agreement follows the termination of a previous sales agreement with B. Riley, under which the company sold 4,121,318 shares from December 30, 2022, to August 28, 2025. The new agreement, which includes customary terms and conditions, aims to provide Journey Medical with flexibility in raising capital, potentially impacting its financial strategy and market positioning.

The most recent analyst rating on (DERM) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on Journey Medical Corp stock, see the DERM Stock Forecast page.

Journey Medical’s Earnings Call: EMROSI’s Impact and Challenges

The recent earnings call from Journey Medical Corporation painted a picture of both optimism and caution. The company celebrated a strong start for its new product, EMROSI, which has shown significant growth in prescriptions and payer access, leading to improved gross margins. However, the call also highlighted challenges, particularly with declining Accutane sales and a continued net loss.

Journey Medical Corporation’s Strong Start with Emrosi™

Journey Medical Corporation is a commercial-stage pharmaceutical company specializing in the marketing of FDA-approved prescription products for dermatological conditions, based in Scottsdale, Arizona. The company recently announced its financial results for the first quarter of 2025, highlighting a strong start to the commercial launch of Emrosi™, an oral treatment for rosacea.