Journey Medical Corp (DERM) AI Stock Analysis

• Market Cap: $216.00M
• Dividend Yield: N/A
• Average Volume (3M): 184.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.22
• Revenue Growth: 2.82%
• EPS Growth: 60.26%
• Country: US
• Employees: 41
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.09
• Shares Outstanding: 21,135,904
• 10 Day Avg. Volume: 157,857
• 30 Day Avg. Volume: 184,064
• 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: 0.82
• Enterprise Value/Revenue: 3.16
• Enterprise Value/Gross Profit: 4.68
• Enterprise Value/Ebitda: -149.88
• 1Y Price Target: $14.00
• Price Target Upside: 75.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): -0.34
• Revenue Forecast (FY): $65.13M

• Rating: 57 Neutral
• Price Target: $9.50 ▲(19.35% Upside)

The overall stock score of 57 reflects a company facing significant financial challenges, with declining revenues and negative profitability margins. However, the positive sentiment from the earnings call, driven by the successful launch of Amrozi and strategic initiatives, provides some optimism. Technical indicators suggest a cautious but positive short-term outlook, while valuation remains a concern due to ongoing losses and lack of dividend yield.

Positive Factors

Revenue Growth

The strong revenue growth indicates effective product launches and market expansion, enhancing the company's competitive position in dermatology.

Successful Product Launch

The successful launch of Amrozi demonstrates the company's ability to innovate and capture market share, supporting long-term revenue growth.

Improved Financial Metrics

Improved EBITDA indicates better operational efficiency and financial management, which can lead to sustainable profitability.

Negative Factors

Declining Legacy Product Revenue

The decline in legacy product revenue due to generic competition poses a risk to overall revenue stability and necessitates diversification.

Negative Cash Flow

Negative cash flow challenges the company's ability to fund operations and growth initiatives, impacting long-term financial health.

Reliance on Co-pay Assistance

Dependence on co-pay assistance may pressure margins and delay profitability, highlighting challenges in market penetration.

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 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 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	56.40M	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	9.28M
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: 7.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 7.96 is above the 20-day moving average (MA) of 7.84, above the 50-day MA of 7.93, and above the 200-day MA of 7.21, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.85 is Neutral, neither overbought nor oversold. The STOCH value of 56.35 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	57 Neutral	$216.00M	-21.68	-47.05%	―	2.82%	60.26%
CPIX	55 Neutral	$63.72M	-18.28	-13.08%	―	12.21%	69.91%
ASRT	53 Neutral	$63.53M	-2.10	-24.48%	―	9.21%	58.12%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TKNO	46 Neutral	$219.47M	-12.02	-22.79%	―	9.50%	53.74%
TLPH	41 Neutral	$51.74M	-2.94	-86.48%	―	-90.04%	44.40%

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.