Journey Medical Corp (DERM) AI Stock Analysis

• Market Cap: $185.75M
• Dividend Yield: N/A
• Average Volume (3M): 132.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.33
• 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: 88,896
• 30 Day Avg. Volume: 132,909
• 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: $11.25
• Price Target Upside: 59.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 51 Neutral
• Price Target: $7.00 ▼(-0.85% Downside)

Journey Medical Corp's overall stock score is primarily impacted by its financial challenges, including declining revenues and negative cash flows. Despite these issues, the successful launch of EMROSI and improved gross margins provide some positive momentum. Technical indicators suggest a bearish trend, and valuation metrics are unattractive due to ongoing losses. The earnings call highlights some positive developments, but these are tempered by increased expenses and a higher net loss.

Positive Factors

Successful Product Launch

The successful launch of EMROSI, with strong initial uptake, indicates potential for sustained revenue growth and market penetration in dermatology.

Improved Gross Margins

Improved gross margins suggest enhanced operational efficiency and profitability potential, strengthening the company's financial health.

Expanded Payer Access

Expanded payer access for EMROSI enhances market reach and potential revenue, supporting long-term growth and competitive positioning.

Negative Factors

Declining Revenue

The decline in revenue highlights challenges in maintaining sales momentum, which could impact financial stability and growth prospects.

Negative Cash Flow

Negative cash flow indicates liquidity issues and operational inefficiencies, potentially hindering the company's ability to invest in growth.

Increased SG&A Expenses

Rising SG&A expenses could pressure margins and profitability, necessitating cost control measures to ensure sustainable financial performance.

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 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: Negative
• Last Price: 7.06
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 7.06 is below the 20-day moving average (MA) of 7.17, below the 50-day MA of 7.29, and above the 200-day MA of 6.24, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 46.52 is Neutral, neither overbought nor oversold. The STOCH value of 23.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$534.30M	-4.99	13.31%	―	-3.48%	36.57%
CPIX	56 Neutral	$46.23M	-14.49	-10.47%	―	11.34%	71.13%
IRWD	52 Neutral	$225.78M	-26.58	2.56%	―	-22.98%	-173.28%
DERM	51 Neutral	$185.75M	―	-57.22%	―	-27.40%	-475.41%
BIOA	33 Underperform	$194.31M	-2.42	―	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

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.

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.