DermTech (DMTKQ) AI Stock Analysis

• Market Cap: $35.00
• Dividend Yield: N/A
• Average Volume (3M): 102.77K
• Price to Earnings (P/E): ―
• Beta (1Y): -77.95
• Revenue Growth: 9.71%
• EPS Growth: 31.13%
• Country: US
• Employees: 206
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -2.69
• Shares Outstanding: 35,253,582
• 10 Day Avg. Volume: 129,687
• 30 Day Avg. Volume: 102,771
• PEG Ratio: >-0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: >-0.01
• Enterprise Value/Market Cap: 745.53K
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 19.58
• Enterprise Value/Ebitda: -0.06
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 40 Underperform
• Price Target: ―

DermTech's overall stock score reflects significant financial and operational challenges, with weak profitability and cash flow pressures. The lack of technical analysis data and poor valuation metrics further contribute to a low score. The absence of insights from recent earnings calls also limits confidence in the company's future prospects.

DermTech Business Overview & Revenue Model

Company Description

DermTech, Inc., a molecular diagnostic company, engages in the development and marketing of novel non-invasive genomics tests to aid in the diagnosis and management of melanoma in the United States. The company provides DermTech Melanoma Test (DMT), an innovative non-invasive way to enhance melanoma detection for developing product for non-melanoma skin cancers. It also offers DermTech Smart Sticker, which provides a non-invasively way to collect skin sample including standard care by using scalpel to biopsy suspicious lesions. In addition, it provides research services and technology platform on a contract basis to pharmaceutical companies which use the technology for clinical trials. Further, the company develops gene expression assays for the psoriasis, atopic dermatitis, and aging of the skin to pharmaceutical companies to develop drug products in dermatology; and develop custom gene assays to support the pharmaceutical partners. It sells its products through pathology and oncology practitioners. DermTech, Inc. is headquartered in San Diego, California. On June 18, 2024, DermTech, Inc., along with its affiliate, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.

How the Company Makes Money

DermTech generates revenue primarily through the sale of its genomic testing services, particularly the DermTech Melanoma Test. The company partners with dermatologists and healthcare providers who utilize its tests to improve diagnostic accuracy for skin cancer, allowing for early detection and treatment. DermTech charges fees per test conducted, thus generating income based on the volume of tests processed. Additionally, the company may enter into collaborations with research institutions and pharmaceutical companies for the development of new products or research studies, potentially providing additional revenue streams. Insurance reimbursements are also a significant component of DermTech's revenue model, as coverage by major insurance providers facilitates broader adoption of its tests.

DermTech Financial Statement Overview

Summary

DermTech faces significant financial challenges, with weak profitability and cash flow. Revenue growth is modest but insufficient to cover high operating losses. The balance sheet remains stable but indicates increasing liabilities.

Income Statement

DermTech's revenue has shown a modest growth trend over the years, with a 5.36% increase from 2022 to 2023. However, the company is struggling with profitability, as indicated by a negative net profit margin and declining gross profit. The EBIT and EBITDA margins further highlight the company's operational challenges.

Balance Sheet

The company's balance sheet reveals a moderate level of debt, with a debt-to-equity ratio of 0.95 as of 2023. The equity ratio has decreased, reflecting a greater reliance on liabilities. Although the stockholders' equity has declined, the company maintains a stable level of assets.

Cash Flow

DermTech's cash flow is under pressure, with negative free cash flow and operating cash flow. The free cash flow has improved slightly from the previous year but remains negative. The company is heavily reliant on financing activities to manage cash needs.

Breakdown	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	15.30M	14.52M	11.84M	5.88M	3.36M
Gross Profit	276.00K	647.00K	1.27M	-96.00K	60.00K
EBITDA	-97.89M	-113.70M	-75.10M	-34.80M	-17.38M
Net Income	-100.89M	-116.68M	-78.33M	-36.48M	-20.13M
Balance Sheet
Total Assets	121.93M	202.07M	248.31M	69.78M	18.21M
Cash, Cash Equivalents and Short-Term Investments	55.86M	126.17M	225.33M	63.78M	15.37M
Total Debt	54.39M	55.83M	7.86M	335.00K	0.00
Total Liabilities	64.75M	69.72M	18.61M	7.94M	5.72M
Stockholders Equity	57.17M	132.35M	229.70M	61.84M	12.49M
Cash Flow
Free Cash Flow	-77.88M	-98.56M	-64.83M	-30.52M	-18.00M
Operating Cash Flow	-76.98M	-95.26M	-62.11M	-28.68M	-17.79M
Investing Cash Flow	29.86M	-4.32M	-12.51M	-41.34M	-210.00K
Financing Cash Flow	6.08M	917.00K	230.28M	78.90M	28.62M

DermTech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSTL	64 Neutral	$468.60M	30.59	-1.20%	―	38.43%	86.19%
PSNL	56 Neutral	$543.20M	―	-51.25%	―	15.57%	31.82%
Sector *	52 Neutral	$7.47B	0.53	-62.70%	2.38%	14.92%	0.82%
ACRS	46 Neutral	$181.91M	―	-91.03%	―	-40.09%	-18.67%
BDSX	45 Neutral	$56.88M	―	-1454.41%	―	35.76%	47.48%
MYGN	43 Neutral	$403.74M	―	-13.84%	―	7.38%	60.45%
DMTKQ	40 Underperform	$35.00	―		―	9.71%	31.13%