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Journey Medical Corp (DERM)
NASDAQ:DERM
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Journey Medical Corp
(NASDAQ:DERM)
58Neutral
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
$170.81M
Dividend YieldN/A
Average Volume (3M)82.48K
Price to Earnings (P/E)―
Beta (1Y)-0.29
Revenue Growth-29.11%
EPS Growth-219.44%
CountryUS
Employees41
SectorHealthcare
Sector Strength64
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.74
Shares Outstanding17,113,604
10 Day Avg. Volume93,204
30 Day Avg. Volume82,481
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.08
Price to Cash Flow (P/CF)-25.90
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
$9.88Price Target Upside33.69% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Journey Medical Corp Business Overview & Revenue Model
Company DescriptionJourney Medical Corp (DERM) is a pharmaceutical company focused on the development and commercialization of dermatology products. The company aims to address a variety of skin conditions by providing effective treatment options through its innovative product portfolio. Journey Medical Corp operates primarily in the healthcare sector, with a core emphasis on dermatological solutions that improve patient outcomes and enhance quality of life.
How the Company Makes MoneyJourney Medical Corp generates revenue through the sale of its dermatological products to healthcare providers, pharmacies, and direct distribution channels. Key revenue streams include the commercialization of prescription and over-the-counter dermatology products that address conditions such as acne, rosacea, and other skin disorders. The company may also engage in partnerships or collaborations with other pharmaceutical companies, leveraging their distribution networks and market presence to expand its product reach and increase sales. Additionally, factors such as product innovation, regulatory approvals, and market demand for effective dermatological treatments contribute significantly to Journey Medical Corp's earnings.
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.45
Neutral
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.55
Neutral
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.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 56.13M | 79.18M | 73.67M | 63.13M | 44.53M |
| Gross Profit | ||||
| 56.13M | 52.52M | 42.89M | 31.05M | 29.94M |
| EBIT | ||||
| -13.68M | -2.07M | -27.52M | -25.34M | 7.85M |
| EBITDA | ||||
| -8.40M | 1.92M | -23.18M | -32.77M | 9.37M |
| Net Income Common Stockholders | ||||
| -14.67M | -3.85M | -29.63M | -43.99M | 5.28M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 20.30M | 27.44M | 32.00M | 49.08M | 8.25M |
| Total Assets | ||||
| 80.24M | 76.85M | 105.16M | 97.28M | 51.91M |
| Total Debt | ||||
| 201.00K | 17.73M | 22.96M | 910.00K | 5.40M |
| Net Debt | ||||
| -20.10M | -9.71M | -9.04M | -48.17M | -2.84M |
| Total Liabilities | ||||
| 60.17M | 56.50M | 88.18M | 55.24M | 41.61M |
| Stockholders Equity | ||||
| 20.07M | 20.35M | 16.98M | 42.04M | 10.29M |
| Cash Flow | Free Cash Flow | |||
| -9.13M | 240.00K | -33.53M | -12.18M | 3.93M |
| Operating Cash Flow | ||||
| -9.13M | 5.24M | -13.53M | -2.18M | 5.13M |
| Investing Cash Flow | ||||
| -15.00M | -5.00M | -20.00M | -10.00M | -1.20M |
| Financing Cash Flow | ||||
| 16.99M | -4.80M | 16.46M | 53.02M | -487.00K |
Journey Medical Corp Technical Analysis
Positive
7.39
Price Trends
5.73
Positive
5.17
Positive
5.27
Positive
Market Momentum
0.26
Negative
67.13
Neutral
62.67
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 7.39 is above the 20-day moving average (MA) of 6.34, above the 50-day MA of 5.73, and above the 200-day MA of 5.27, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 67.13 is Neutral, neither overbought nor oversold. The STOCH value of 62.67 is Neutral, 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 (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | $170.81M | ― | -72.60% | ― | -29.11% | -219.44% | |
51 Neutral | $660.03M | ― | -913.07% | ― | 31.76% | 24.85% | |
51 Neutral | $5.20B | 3.18 | -40.80% | 2.96% | 17.66% | 1.94% | |
46 Neutral | $31.07M | ― | -270.01% | ― | -65.96% | 40.80% | |
45 Neutral | $22.92M | ― | -145.04% | ― | -25.39% | 77.07% | |
39 Underperform | $42.95M | ― | -1546.58% | ― | 47.66% | -5.04% | |
31 Underperform | $39.49M | ― | 1063.61% | ― | 1404.02% | 59.49% |
* Healthcare Sector Average
Performance Comparison
DERM
Journey Medical Corp
7.39
3.99
117.35%
DRRX
Durect
0.73
-0.15
-17.05%
TVRD
Tvardi Therapeutics
19.49
-4.69
-19.40%
ATRA
Atara Biotherapeutics
6.74
-11.13
-62.28%
EOLS
Evolus
10.46
-1.04
-9.04%
VRCA
Verrica Pharmaceuticals
0.47
-6.32
-93.08%
Journey Medical Corp Earnings Call Summary
Earnings Call Date: Mar 26, 2025 | % Change Since: 20.36% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with significant achievements, including the FDA approval and upcoming launch of MROSI, positive EBITDA, and a strong cash position. However, there are challenges with decreased revenue from legacy products and increased R&D expenses. The sentiment is buoyed by the transformational potential of MROSI and its expected market impact.Highlights
MROSI FDA Approval and Launch
MROSI received on-time first cycle FDA approval in November 2024, with the launch set for early April 2025. This is Journey Medical's first internally developed asset, expected to become a major growth driver with potential peak annual sales of $200 million in the U.S. and $100 million internationally.
Positive Non-GAAP Adjusted EBITDA
The fourth quarter of 2024 marked the sixth consecutive quarter with a positive non-GAAP adjusted EBITDA, totaling $800,000 for the year.
Strong Cash Position
Journey Medical ended 2024 with $20.3 million in cash, maintaining a strong balance sheet despite significant FDA filing fees and milestone payments.
Successful Presence at Medical Conferences
MROSI's clinical data were presented at key medical congresses, garnering significant interest, and the Phase 3 results were published in JAMA Dermatology.
Lowlights
Decrease in Total Revenue
Total net product revenue in 2024 was $55.1 million, down from $59.7 million in 2023, primarily due to higher rebate costs and lower unit volumes from legacy products.
Increased Research and Development Expenses
R&D expenses increased by $2.3 million to $9.9 million due to non-recurring payments related to MROSI's NDA filing and milestone payments.
Net Loss Increase
Net loss to common shareholders was $14.7 million in 2024, compared to $3.9 million in 2023, primarily due to the absence of the previous year's significant licensee revenue.
Company Guidance
In the 2024 financial update call, Journey Medical highlighted several key metrics and strategic achievements. The company reported annual revenue of $56 million and successfully met all financial guidance ranges for the year. The fourth quarter marked the sixth consecutive quarter of positive non-GAAP adjusted EBITDA. Journey Medical launched MROSI, an oral treatment for rosacea, after receiving FDA approval in November 2024. Despite paying $22 million in FDA filing fees and milestone payments to Dr. Reddy Labs, the company maintained a strong balance sheet with $20.3 million in cash as of December 31, 2024. MROSI's market entry positions Journey Medical in a $1 billion-plus treatment category, with expectations of significant operating leverage and potential peak annual sales of $200 million in the United States. The company achieved approximately 20% commercial payer coverage for MROSI and plans to expand this coverage throughout 2025. Journey Medical also reported a net loss of $14.7 million for 2024, compared to a net loss of $3.9 million in 2023. The positive momentum from 2024 is expected to continue into 2025, with several strategic initiatives, including increased payer coverage and additional peer-reviewed publications, aimed at driving growth and shareholder value.Journey Medical Corp Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Journey Medical Corp Appoints New Chief Operating Officer
Positive
Apr 3, 2025
On April 1, 2025, Journey Medical Corporation appointed Ramsey Alloush as Chief Operating Officer while he continues as General Counsel. Alloush, who joined the company in 2020, has played a significant role in its growth and strategic initiatives, including leading the IPO in 2021. His appointment comes at a pivotal time as the company prepares to launch Emrosi™, a new dermatological treatment expected to drive the company’s growth and redefine market standards.
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.