Dermata Therapeutics (DRMA) AI Stock Analysis

• Market Cap: $4.90M
• Dividend Yield: N/A
• Average Volume (3M): 215.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: N/A
• EPS Growth: 75.68%
• Country: US
• Employees: 8
• Sector: Healthcare
• Sector Strength: 43
• Industry: Biotechnology
• EPS (TTM): -0.45
• Shares Outstanding: 6,378,118
• 10 Day Avg. Volume: 72,486
• 30 Day Avg. Volume: 215,993
• PEG Ratio: <0.01
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.44
• Enterprise Value/Market Cap: 0.35
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -0.06
• 1Y Price Target: $3.00
• Price Target Upside: 289.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 15 Underperform
• Price Target: ―

Dermata Therapeutics' stock is primarily impacted by its financial health, characterized by significant operating losses and reliance on external financing. Technical analysis indicates a bearish trend with potential overselling, while valuation remains difficult to assess due to negative earnings. These factors contribute to a low overall score.

Positive Factors

Clinical Trial Success

DRMA announced additional positive topline results from its first pivotal Phase 3 trial of XYNGARI, a novel topical product for the treatment of moderate-to-severe acne.

Market Opportunity

The analyst sees significant opportunities for DRMA in the acne, psoriasis, and aesthetic treatment markets due to its unique Spongilla technology.

Patient Compliance

XYNGARI's once-weekly application could improve patient adherence compared to currently FDA-approved topicals that require daily application.

Negative Factors

Financial Needs

DRMA is pre-revenue and is expected to require a capital raise to fund ongoing operations and future trials.

Funding Requirements

The company is pre-revenue and anticipates requiring a capital raise before the second Phase 3 clinical trial.

Share Dilution

Based on expected share dilution from an anticipated capital raise, the 12-month price target is being lowered to $3.00, from $6.00.

Dermata Therapeutics Business Overview & Revenue Model

Company Description

Dermata Therapeutics, Inc., a clinical-stage biotechnology company, focuses on identifying, developing, and commercializing pharmaceutical product candidates for the treatment of medical and aesthetic skin conditions. The company's lead product candidate is DMT310, which has completed Phase IIb clinical trial for treatment of moderate-to-severe acne; and Phase Ib proof of concept (POC) trial for Mild-to-Moderate Psoriasis, as well as is in a Phase 2 clinical trial for treatment of moderate-to-severe rosacea. It is also developing DMT410 that has completed Phase Ib POC trials for the treatment of hyperhidrosis and aesthetic conditions. The company was incorporated in 2014 and is headquartered in San Diego, California.

How the Company Makes Money

Dermata Therapeutics primarily makes money through the development and licensing of its proprietary dermatology treatments. The company's revenue model includes securing partnerships with larger pharmaceutical companies for the co-development or commercialization of its drug candidates. Key revenue streams are expected to come from milestone payments, royalties on product sales, and licensing fees once their drugs receive regulatory approval and are brought to market. Additionally, the company may engage in research collaborations and receive funding support from grants or other financial partnerships to advance its pipeline.

Dermata Therapeutics Financial Statement Overview

Summary

Dermata Therapeutics is at a high-risk pre-revenue stage typical for biotech startups, with significant operating losses and negative cash flow. The absence of debt is a positive aspect, but the company's financial health is heavily reliant on external financing to sustain operations. Future financial stability hinges on developing revenue streams or securing continued financing.

Income Statement

Dermata Therapeutics has reported no revenue for the past several years, indicating a pre-revenue stage typical for biotech firms. The company has consistently recorded net losses, with a significant increase in net loss in 2024, reflecting ongoing operational challenges and substantial R&D expenses without offsetting revenues. This results in negative profitability metrics across all measured margins.

Balance Sheet

The company's balance sheet shows a reasonable equity position with no outstanding debt, which is positive for financial stability. However, the equity base has been declining, and total liabilities have increased over recent years. The equity ratio is declining, pointing to potential financial risk if this trend continues. The absence of revenue generation raises concerns about the sustainability of the current equity position.

Cash Flow

Operating cash flows are negative, consistent with the company's net loss position. Free cash flow is similarly negative, reflecting high cash burn typical of early-stage biotech firms. The company relies heavily on financing activities to fund operations, which may pose risks if external funding becomes challenging to secure.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	0.00	0.00	0.00	-322.00
	EBIT
-12.51B	-8.04M	-9.67M	-7.86M	-3.17M
	EBITDA
-12.29M	247.22K	0.00	-7.86M	-3.17M
	Net Income Common Stockholders
-12.29B	-7.79M	-9.61M	-7.95M	-3.43M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.16M	7.44M	6.24M	10.80M	530.40K
	Total Assets
3.53M	7.98M	6.94M	11.62M	605.45K
	Total Debt
0.00	0.00	0.00	0.00	3.55M
	Net Debt
-3.16M	-7.44M	-6.24M	-10.80M	3.02M
	Total Liabilities
1.97M	1.62M	922.63K	1.52M	3.78M
	Stockholders Equity
1.56B	6.36M	6.02M	10.11M	-28.08M
Cash Flow		Free Cash Flow
-11.16M	-6.41M	-8.83M	-5.69M	-4.03M
	Operating Cash Flow
-11.16M	-6.41M	-8.83M	-5.69M	-4.03M
	Investing Cash Flow
0.00	0.00	0.00	0.00	0.00
	Financing Cash Flow
6.89M	7.61M	4.28M	15.96M	2.57M

Dermata Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DRMA, the sentiment is Negative. The current price of 0.77 is below the 20-day moving average (MA) of 0.81, below the 50-day MA of 0.92, and below the 200-day MA of 1.29, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 38.31 is Neutral, neither overbought nor oversold. The STOCH value of 16.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DRMA.

Dermata Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	53 Neutral	$5.14B	3.06	-43.57%	2.81%	16.81%	-0.12%
ADIL	32 Underperform	$5.68M	―	-217.01%	―	―	45.99%
MBIO	31 Underperform	$5.60M	―	270.52%	―	―	85.97%
DRMA	15 Underperform	$4.90M	―	-206.26%	―	―	75.68%
ATNF		$5.89M	―	-221.23%	―	―	―
AEON	24 Underperform	$6.21M	<0.01	13.29%	―	―	-261.69%
ALZN		$2.85M	―	-1092.96%	―	―	―