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Journey Medical Corp (DERM)
NASDAQ:DERM
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Journey Medical Corp
(NASDAQ:DERM)
39Underperform
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 (DERM) vs. S&P 500 (SPY)
Market Cap
$107.58M
Dividend YieldN/A
Average Volume (3M)58.34K
Price to Earnings (P/E)―
Beta (1Y)0.65
Revenue Growth-27.69%
EPS Growth-27.91%
CountryUS
Employees58
SectorHealthcare
Sector Strength78
IndustryPharmaceuticals
Share Statistics
EPS (TTM)-0.92
Shares Outstanding14,889,936
10 Day Avg. Volume68,600
30 Day Avg. Volume58,339
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.81
Price to Cash Flow (P/CF)-22.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.00Price Target Upside94.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Journey Medical Corp Business Overview & Revenue Model
Company DescriptionJourney Medical Corp (DERM) is a pharmaceutical company focused on the development and commercialization of prescription dermatology products. The company operates within the healthcare sector, specializing in addressing unmet medical needs in the dermatology field. Journey Medical Corp aims to improve the lives of patients by providing innovative and effective treatments for skin disorders.
How the Company Makes MoneyJourney Medical Corp generates revenue primarily through the sale of its dermatology-focused prescription medications. The company collaborates with dermatologists and healthcare professionals to bring its products to market, leveraging a network of partnerships with pharmaceutical manufacturers and distributors. Revenue streams include direct product sales, licensing agreements, and potentially milestone or royalty payments from partnerships. The company's strategic focus on niche dermatological conditions allows it to capitalize on specific market needs and establish a solid presence in the pharmaceutical industry.
Journey Medical Corp Financial Statement Overview
Summary
Journey Medical Corp faces significant financial challenges with declining revenue, high leverage, and negative cash flow trends. The income statement indicates a substantial net loss, and the balance sheet shows a high debt-to-equity ratio. Cash flow issues are exacerbated by negative free cash flow, highlighting the need for improved cash conversion and revenue growth.Income Statement
The income statement shows challenges with profitability, evidenced by a negative net profit margin of -31.74% for TTM. Gross profit margin remains healthy at 57.31% TTM, indicating cost efficiency in production. However, revenue has decreased by 27.06% from the previous year, posing concerns about growth potential.45
Neutral
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 1.81 TTM, indicating significant leverage. Stockholders' equity has decreased significantly, affecting stability. The equity ratio of 17.06% TTM suggests limited equity cushion. ROE's negative value reflects ongoing unprofitability challenges.40
Negative
Cash Flow
The cash flow statement highlights cash flow issues, with negative free cash flow and a concerning free cash flow growth rate of -9,417.08% TTM. The operating cash flow to net income ratio indicates inefficiencies in converting earnings into cash.35
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 57.77M | 79.18M | 73.67M | 63.13M | 44.53M | 34.92M | Gross Profit |
| 33.11M | 52.52M | 42.89M | 31.05M | 29.94M | 24.39M | EBIT |
| -18.02M | -2.07M | -27.52M | -25.34M | 7.85M | 5.26M | EBITDA |
| -12.97M | 1.92M | -23.18M | -32.77M | 9.37M | 6.44M | Net Income Common Stockholders |
| -18.34M | -3.85M | -29.63M | -43.99M | 5.28M | 3.63M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 313.04M | 27.44M | 32.00M | 49.08M | 8.25M | 4.80M | Total Assets |
| 344.32M | 76.85M | 105.16M | 97.28M | 51.91M | 33.86M | Total Debt |
| 313.79M | 17.73M | 22.96M | 910.00K | 5.40M | 5.30M | Net Debt |
| 208.81M | -9.71M | -9.04M | -48.17M | -2.84M | 502.00K | Total Liabilities |
| 353.36M | 56.50M | 88.18M | 55.24M | 41.61M | 31.11M | Stockholders Equity |
| -9.04M | 20.35M | 16.98M | 42.04M | 10.29M | 2.75M |
| Cash Flow | Free Cash Flow | ||||
| -22.78M | 240.00K | -33.53M | -12.18M | 3.93M | 6.62M | Operating Cash Flow |
| -27.78M | 5.24M | -13.53M | -2.18M | 5.13M | 9.02M | Investing Cash Flow |
| 5.00M | -5.00M | -20.00M | -10.00M | -1.20M | -2.40M | Financing Cash Flow |
| 25.49M | -4.80M | 16.46M | 53.02M | -487.00K | -3.55M |
Journey Medical Corp Technical Analysis
Positive
5.15
Price Trends
4.61
Positive
5.03
Positive
5.09
Positive
Market Momentum
0.11
Positive
52.48
Neutral
14.20
Positive
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 5.15 is below the 20-day moving average (MA) of 5.22, above the 50-day MA of 4.61, and above the 200-day MA of 5.09, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 52.48 is Neutral, neither overbought nor oversold. The STOCH value of 14.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DERM.
Journey Medical Corp Risk Analysis
Journey Medical Corp disclosed 62 risk factors in its most recent earnings report. Journey Medical Corp reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Journey Medical Corp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
53 Neutral | $808.19M | ― | -913.07% | ― | 31.76% | 24.85% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% | |
44 Neutral | $23.43M | ― | -221.25% | ― | -59.08% | 18.99% | |
42 Neutral | $25.40M | ― | -218.51% | ― | -6.53% | 63.71% | |
39 Underperform | $107.58M | ― | -129.58% | ― | -27.69% | -27.91% | |
34 Underperform | $58.70M | ― | -2059.89% | ― | 187.45% | -69.90% | |
25 Underperform | $38.73M | ― | 1063.61% | ― | 1404.02% | 59.49% |
* Healthcare Sector Average
Performance Comparison
DERM
Journey Medical Corp
5.31
1.90
55.72%
DRRX
Durect
0.80
-0.33
-29.20%
CARA
Cara Therapeutics
5.12
-5.32
-50.96%
ATRA
Atara Biotherapeutics
6.61
-10.07
-60.37%
EOLS
Evolus
12.71
-1.33
-9.47%
VRCA
Verrica Pharmaceuticals
0.60
-4.56
-88.37%
Journey Medical Corp Earnings Call Summary
Earnings Call Date: Nov 12, 2024 | % Change Since: -5.50% | Next Earnings Date: Mar 20, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Journey Medical's solid progress with a positive adjusted EBITDA, cost management, and growth potential for DFD-29 despite a year-over-year decline in net product revenue and a reported net loss. The overall sentiment leans towards optimism due to strategic advancements and anticipated market opportunities.Highlights
Solid Revenue and Prescription Growth
Journey Medical reported $14.9 million in net product revenue for Q2 2024, demonstrating a solid performance and remaining on track to meet the annual revenue guidance range of $55 million to $60 million. Notably, QBREXZA prescriptions grew by approximately 4,000 and Accutane by 17,000 compared to Q2 2023.
Positive Adjusted EBITDA
The company achieved a positive non-GAAP adjusted EBITDA of $300,000 in Q2 2024, marking the fourth consecutive quarter of positive adjusted EBITDA results.
Cost Management and Reduced Expenses
Since the beginning of 2023, Journey Medical reduced total expenses by approximately $22 million, significantly improving profitability and maintaining a strong cash position.
Clinical Success and Market Potential for DFD-29
DFD-29 for rosacea showed positive Phase III trial results, demonstrating statistical superiority to both placebo and Oracea. The company anticipates market approval later this year, with significant growth potential in the $1.2 billion U.S. rosacea treatment market.
Lowlights
Decrease in Net Product Revenue Year-over-Year
Net product revenue for Q2 2024 was $14.9 million, a decrease from $17 million in Q2 2023, primarily due to timing of custom orders and generic competition for Targadox.
Net Loss to Common Shareholders
The company reported a GAAP net loss to common shareholders of $3.4 million or $0.17 per share for Q2 2024, compared to a loss of $8.4 million or $0.40 per share in Q2 2023.
Company Guidance
During Journey Medical's Q2 2024 earnings call, the company's executive team provided guidance indicating that they are on track to meet their annual revenue target of $55 million to $60 million, with Q2 net product revenue reaching $14.9 million. The company highlighted the growth of key products, QBREXZA and Accutane, which contributed $12.6 million in revenue for the quarter, with prescriptions increasing by 4,000 and 17,000, respectively, compared to Q2 2023. The executives also emphasized their fourth consecutive quarter of positive non-GAAP adjusted EBITDA, which stood at $300,000, and noted a significant reduction in SG&A expenses by $22 million since 2023. The anticipated launch of DFD-29, a product candidate for rosacea, is expected to further strengthen their market position, with a PDUFA date set for November 4. The company remains focused on achieving its financial guidance and preparing for the potential approval and launch of DFD-29, with the goal of becoming sustainably cash flow positive in the coming quarters and EBITDA positive by 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.