Dermata Therapeutics (DRMA) AI Stock Analysis

• Market Cap: $6.41M
• Dividend Yield: N/A
• Average Volume (3M): 2.72M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: N/A
• EPS Growth: 75.68%
• Country: US
• Employees: 8
• Sector: Healthcare
• Sector Strength: 70
• Industry: Biotechnology
• EPS (TTM): -14.53
• Shares Outstanding: 5,430,648
• 10 Day Avg. Volume: 7,790,818
• 30 Day Avg. Volume: 2,720,862
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.98
• Price to Cash Flow (P/CF): -0.60
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $6.00
• Price Target Upside: 408.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Dermata Therapeutics presents a high-risk investment profile typical for pre-revenue biotech companies. The company's financial performance is marked by significant operating losses and cash flow challenges, with sustainability tied to external financing. Technical analysis indicates a potential for stabilization, but the stock remains in a bearish trend. Valuation metrics reflect the lack of profitability, aligning with its developmental stage. Investors should be cautious, considering these financial and market dynamics.

Positive Factors

Clinical Trial Results

DRMA announced positive topline results from its first pivotal Phase 3 trial of XYNGARI, achieving all primary endpoints with statistically significant differences compared to placebo.

Product Innovation

The unique once-weekly application of XYNGARI could improve patient compliance compared to current FDA-approved topicals that require daily application.

Product Safety and Tolerance

XYNGARI appeared to be safe and well tolerated by patients with minimal treatment-related adverse events and no serious adverse events.

Negative Factors

Capital Requirements

The company is pre-revenue and a capital raise is likely required before the completion of the second Phase 3 study.

Financial Status

Pending positive results, the company will pursue a third-party partnership or licensing agreement to assist in funding a second Phase 3 clinical trial.

Dermata Therapeutics Business Overview & Revenue Model

Company Description

Dermata Therapeutics, Inc. (DRMA) is a clinical-stage biotechnology company focused on developing and commercializing innovative pharmaceutical products for the treatment of medical and aesthetic skin conditions. The company operates in the biotechnology and pharmaceuticals sectors, leveraging its unique Spongilla technology platform to address unmet needs in dermatology.

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 in a high-risk, pre-revenue stage typical for biotech startups, with significant operating losses and negative cash flow. While the lack of debt is a positive aspect, the company's financial health is heavily reliant on external financing to sustain operations. The future financial stability of the company hinges on its ability to develop revenue streams or secure 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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	0.00	0.00	0.00	0.00	-322.00
	EBIT
-11.53M	-12.51B	-8.04M	-9.67M	-7.86M	-3.17M
	EBITDA
-8.24M	-12.51B	247.22K	0.00	-7.86M	-3.17M
	Net Income Common Stockholders
-11.27M	-12.29B	-7.79M	-9.61M	-7.95M	-3.43M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.99M	3.16B	7.44M	6.24M	10.80M	530.40K
	Total Assets
0.00	3.53B	7.98M	6.94M	11.62M	605.45K
	Total Debt
0.00	0.00	0.00	0.00	0.00	3.55M
	Net Debt
1.99M	-3.16B	-7.44M	-6.24M	-10.80M	3.02M
	Total Liabilities
0.00	1.97B	1.62M	922.63K	1.52M	3.78M
	Stockholders Equity
-210.16K	1.56B	6.36M	6.02M	10.11M	-28.08M
Cash Flow		Free Cash Flow
-9.40M	-11.16B	-6.41M	-8.83M	-5.69M	-4.03M
	Operating Cash Flow
-9.40M	-11.16B	-6.41M	-8.83M	-5.69M	-4.03M
	Investing Cash Flow
0.00	0.00	0.00	0.00	0.00	0.00
	Financing Cash Flow
8.91M	6.89B	7.61M	4.28M	15.96M	2.57M

Dermata Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.18 is below the 20-day moving average (MA) of 1.22, below the 50-day MA of 1.21, and below the 200-day MA of 1.59, indicating a bearish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 46.07 is Neutral, neither overbought nor oversold. The STOCH value of 30.07 is Neutral, 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
CLPT	62 Neutral	$343.19M	―	-81.24%	―	31.04%	22.18%
LQDA	50 Neutral	$1.29B	―	-209.35%	―	-19.97%	-37.22%
Sector *	49 Neutral	$6.85B	0.81	-52.75%	2.49%	20.08%	1.28%
EVGN	46 Neutral	$7.03M	―	-331.94%	―	30.69%	6.18%
SNGX	43 Neutral	$6.97M	―	-248.97%	―	―	57.83%
XOMA	39 Underperform	$243.53M	―	-16.20%	―	498.72%	49.92%
DRMA	25 Underperform	$6.41M	―	-310.44%	―	―	75.68%