Journey Medical Corp (DERM) AI Stock Analysis

• Market Cap: $162.49M
• Dividend Yield: N/A
• Average Volume (3M): 98.72K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.16
• Revenue Growth: -29.11%
• EPS Growth: -219.44%
• Country: US
• Employees: 41
• Sector: Healthcare
• Sector Strength: 58
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.74
• Shares Outstanding: 17,113,604
• 10 Day Avg. Volume: 88,635
• 30 Day Avg. Volume: 98,718
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.57
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 1.64
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $9.88
• Price Target Upside: 43.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Journey Medical Corp faces financial challenges, with declining revenue and negative cash flow, which are significant concerns. However, the stock shows positive technical momentum, driven by strategic initiatives like the launch of MROSI and new management appointments. Valuation remains a concern due to negative profitability. The earnings call highlights potential growth driven by new products, despite current financial setbacks.

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 Corporation focuses on the development and commercialization of pharmaceutical products for the treatment of dermatological conditions in the United States. The company's marketed products include Qbrexza, a medicated cloth towelette for the treatment of primary axillary hyperhidrosis; Accutane, an oral isotretinoin drug to treat severe recalcitrant acne; Targadox, an oral doxycycline drug for adjunctive therapy for severe acne; Ximino, an oral minocycline drug for the treatment of moderate to severe acne; and Exelderm cream and solution for topical use. It also sells doxycycline hyclate tablets, minocycline hydrocholoride capsules, and sulconazole nitrate cream and solution. The company was formerly known as Coronado Dermatology, Inc. and changed its name to Journey Medical Corporation. Journey Medical Corporation was incorporated in 2014 and is headquartered in Scottsdale, Arizona.

How the Company Makes Money

Journey Medical Corp generates revenue through the sale of its dermatological products to healthcare providers, pharmacies, and direct distribution channels. Key revenue streams include the commercialization of prescription and over-the-counter dermatology products that address conditions such as acne, rosacea, and other skin disorders. The company may also engage in partnerships or collaborations with other pharmaceutical companies, leveraging their distribution networks and market presence to expand its product reach and increase sales. Additionally, factors such as product innovation, regulatory approvals, and market demand for effective dermatological treatments contribute significantly to Journey Medical Corp's earnings.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
56.13M	79.18M	73.67M	63.13M	44.53M
	Gross Profit
56.13M	52.52M	42.89M	31.05M	29.94M
	EBIT
-13.68M	-2.07M	-27.52M	-25.34M	7.85M
	EBITDA
-8.40M	1.92M	-23.18M	-32.77M	9.37M
	Net Income Common Stockholders
-14.67M	-3.85M	-29.63M	-43.99M	5.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
20.30M	27.44M	32.00M	49.08M	8.25M
	Total Assets
80.24M	76.85M	105.16M	97.28M	51.91M
	Total Debt
201.00K	17.73M	22.96M	910.00K	5.40M
	Net Debt
-20.10M	-9.71M	-9.04M	-48.17M	-2.84M
	Total Liabilities
60.17M	56.50M	88.18M	55.24M	41.61M
	Stockholders Equity
20.07M	20.35M	16.98M	42.04M	10.29M
Cash Flow		Free Cash Flow
-9.13M	240.00K	-33.53M	-12.18M	3.93M
	Operating Cash Flow
-9.13M	5.24M	-13.53M	-2.18M	5.13M
	Investing Cash Flow
-15.00M	-5.00M	-20.00M	-10.00M	-1.20M
	Financing Cash Flow
16.99M	-4.80M	16.46M	53.02M	-487.00K

Journey Medical Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 6.88 is above the 20-day moving average (MA) of 6.82, above the 50-day MA of 6.08, and above the 200-day MA of 5.34, indicating a bullish trend. The MACD of 0.36 indicates Positive momentum. The RSI at 55.90 is Neutral, neither overbought nor oversold. The STOCH value of 56.55 is Neutral, 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	58 Neutral	$162.49M	―	-72.60%	―	-29.11%	-219.44%
CPIX	56 Neutral	$67.19M	―	-24.71%	―	-4.26%	-3.92%
IRWD	53 Neutral	$147.55M	84.35	-8.02%	―	-20.63%	―
Sector *	52 Neutral	$5.36B	3.88	-42.93%	2.87%	17.85%	1.45%
OPTN	44 Neutral	$95.20M	―	75.79%	―	10.19%	44.46%
ESPR	42 Neutral	$215.98M	―	23.44%	―	185.66%	89.22%
BIOA	33 Underperform	$148.42M	―	36.83%	―	―	―

Journey Medical Corp Corporate Events

Journey Medical Corp Appoints New Chief Operating Officer

On April 1, 2025, Journey Medical Corporation appointed Ramsey Alloush as Chief Operating Officer while he continues as General Counsel. Alloush, who joined the company in 2020, has played a significant role in its growth and strategic initiatives, including leading the IPO in 2021. His appointment comes at a pivotal time as the company prepares to launch Emrosi™, a new dermatological treatment expected to drive the company’s growth and redefine market standards.