Journey Medical Corp (DERM) AI Stock Analysis

• Market Cap: $185.75M
• Dividend Yield: N/A
• Average Volume (3M): 180.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.12
• Revenue Growth: -27.40%
• EPS Growth: -475.41%
• Country: US
• Employees: 41
• Sector: Healthcare
• Sector Strength: 51
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.16
• Shares Outstanding: 20,309,843
• 10 Day Avg. Volume: 153,747
• 30 Day Avg. Volume: 180,710
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 3.06
• Enterprise Value/Gross Profit: 4.61
• Enterprise Value/Ebitda: -120.09
• 1Y Price Target: $12.67
• Price Target Upside: 79.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 56 Neutral
• Price Target: $7.50 ▲(6.23% Upside)

Journey Medical Corp's overall stock score is driven by financial challenges, including declining revenues and negative profitability, which are significant concerns. However, positive developments such as the successful launch of EMROSI, improved gross margins, and expanded payer access provide some optimism. Technical indicators are neutral, and the valuation remains unattractive due to ongoing losses. Recent corporate events are positive, enhancing the company's visibility and potential for growth.

Positive Factors

Market Positioning

DFD-29 is expected to be well-positioned to drive substantial long-term growth based on its superior data compared to Oracea.

Product Launch

The company expects a full commercial launch in early April, following the availability of the launch product and a national sales meeting.

Negative Factors

Stock Performance

Shares have traded down 14% since the product’s approval in November and are now valued at a 55% discount to peers on a 2026 EV/revenue basis.

Journey Medical Corp Business Overview & Revenue Model

Company Description

Journey Medical Corp (DERM) is a pharmaceutical company focused on the development and commercialization of dermatology treatments. The company aims to address unmet medical needs by providing innovative therapies for patients with skin disorders. Journey Medical's core products primarily consist of topical treatments and oral medications designed to treat a variety of dermatological conditions.

How the Company Makes Money

Journey Medical Corp generates revenue primarily through the sale of its dermatological products. The company focuses on commercializing both proprietary and licensed products, leveraging its sales force and distribution channels to reach dermatologists and healthcare providers. Revenue streams are bolstered by strategic partnerships and licensing agreements with other pharmaceutical companies, allowing Journey Medical to expand its product offerings and market reach. Additionally, the company invests in research and development to enhance its product pipeline, which can lead to future revenue growth through the introduction of new and improved treatments.

Journey Medical Corp Financial Statement Overview

Summary

Journey Medical Corp is facing financial challenges characterized by declining revenues, negative profitability margins, and worsening cash flow positions. While the company's debt levels have been managed effectively, operational inefficiencies and cash flow difficulties remain key areas of concern. The company needs to focus on revenue growth and cost optimization to improve overall financial health.

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	56.24M	56.13M	79.18M	73.67M	63.13M	44.53M
Gross Profit	37.39M	35.26M	52.52M	42.89M	31.05M	29.94M
EBITDA	-1.43M	-8.40M	1.92M	-23.18M	-32.77M	9.37M
Net Income	-8.30M	-14.67M	-3.85M	-29.63M	-43.99M	5.28M
Balance Sheet
Total Assets	84.96M	80.24M	76.85M	105.16M	97.28M	51.91M
Cash, Cash Equivalents and Short-Term Investments	21.07M	20.30M	27.44M	32.00M	49.08M	8.25M
Total Debt	25.17M	25.70M	17.73M	22.96M	9.05M	5.40M
Total Liabilities	63.42M	60.17M	56.50M	88.18M	55.24M	41.61M
Stockholders Equity	21.54M	20.07M	20.35M	16.98M	42.04M	10.29M
Cash Flow
Free Cash Flow	-6.94M	-9.13M	240.00K	-33.53M	-12.18M	3.93M
Operating Cash Flow	-6.94M	-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	18.95M	16.99M	-4.80M	16.46M	53.02M	-487.00K

Journey Medical Corp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DERM, the sentiment is Neutral. The current price of 7.06 is below the 20-day moving average (MA) of 7.30, below the 50-day MA of 7.27, and above the 200-day MA of 6.11, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 44.38 is Neutral, neither overbought nor oversold. The STOCH value of 16.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DERM.

Journey Medical Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESPR	60 Neutral	$467.76M	―	23.44%	―	-3.48%	36.57%
DERM	56 Neutral	$185.75M	―	-57.22%	―	-27.40%	-475.41%
CPIX	53 Neutral	$54.75M	―	-10.79%	―	11.34%	71.13%
Sector *	51 Neutral	$7.92B	-0.43	-41.69%	2.21%	22.29%	-1.85%
IRWD	51 Neutral	$178.68M	85.74	-8.02%	―	-22.98%	-173.28%
OPTN	50 Neutral		―		―	10.58%	34.44%
BIOA	33 Underperform	$168.85M	―	-35.88%	―	―	―

Journey Medical Corp Corporate Events

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.

Journey Medical Expands Pharmacy Coverage for Emrosi

On July 14, 2025, Journey Medical Corporation announced an expansion in pharmacy benefit coverage for Emrosi™, a treatment for inflammatory lesions of rosacea in adults. The coverage increased from 29% to 65% of commercial lives in the United States, supporting the adoption of Emrosi as prescription demand rises. This expansion is expected to facilitate further growth in total prescription demand, positioning Emrosi as a potential standard of care for rosacea treatment.

Journey Medical Corp Holds 2025 Annual Stockholders Meeting

On June 24, 2025, Journey Medical Corporation held its 2025 Annual Meeting of Stockholders, where stockholders approved three key proposals. These included the election of six directors, the ratification of KPMG LLP as the independent registered public accounting firm for 2025, and the approval of the Fourth Amended and Restated Certificate of Incorporation, which includes provisions for officer exculpation.

Journey Medical Joins Russell 2000 and 3000 Indices

On June 24, 2025, Journey Medical Corporation announced its inclusion in the small-cap Russell 2000® Index and the broad-market Russell 3000® Index, effective after the close of U.S. equity markets on June 27, 2025. This inclusion is expected to increase the company’s visibility with investors and institutions, potentially impacting its market positioning positively. The company has also launched Emrosi™, an FDA-approved treatment for rosacea, which is off to a strong start, indicating a potentially transformational year for Journey Medical.