NasdaqGS:DERM

Stock Analysis Report

Executive Summary

Dermira, Inc., a biopharmaceutical company, develops and commercializes therapies for patients with dermatologic diseases in the United States.


Snowflake Analysis

Adequate balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Dermira's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DERM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.05%

DERM

-6.8%

US Pharmaceuticals

-10.6%

US Market


1 Year Return

134.1%

DERM

-2.5%

US Pharmaceuticals

5.2%

US Market

Return vs Industry: DERM exceeded the US Pharmaceuticals industry which returned 6.1% over the past year.

Return vs Market: DERM exceeded the US Market which returned 19.3% over the past year.


Shareholder returns

DERMIndustryMarket
7 Day0.05%-6.8%-10.6%
30 Day-0.4%-7.8%-8.5%
90 Day117.8%-1.7%-4.6%
1 Year134.1%134.1%0%-2.5%7.4%5.2%
3 Year-43.5%-43.5%16.3%7.9%31.7%23.2%
5 Year12.1%12.1%20.4%7.1%56.4%39.3%

Price Volatility Vs. Market

How volatile is Dermira's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Dermira undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DERM ($18.75) is trading below our estimate of fair value ($105.42)

Significantly Below Fair Value: DERM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DERM is unprofitable, so we can't compare its PE Ratio to the Pharmaceuticals industry average.

PE vs Market: DERM is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DERM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DERM is overvalued based on its PB Ratio (70.6x) compared to the US Pharmaceuticals industry average (3.1x).


Next Steps

Future Growth

How is Dermira forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

34.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DERM is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: DERM is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: DERM is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: DERM's revenue (41.7% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: DERM's revenue (41.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if DERM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Dermira performed over the past 5 years?

-35.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DERM is currently unprofitable.

Growing Profit Margin: DERM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DERM is unprofitable, and losses have increased over the past 5 years at a rate of -35.2% per year.

Accelerating Growth: Unable to compare DERM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DERM is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (-0.2%).


Return on Equity

High ROE: DERM has a negative Return on Equity (-1465.64%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dermira's financial position?


Financial Position Analysis

Short Term Liabilities: DERM's short term assets ($412.5M) exceed its short term liabilities ($58.6M).

Long Term Liabilities: DERM's short term assets ($412.5M) exceed its long term liabilities ($363.1M).


Debt to Equity History and Analysis

Debt Level: DERM's debt to equity ratio (2447.6%) is considered high.

Reducing Debt: DERM's debt to equity ratio has increased from 4.8% to 2447.6% over the past 5 years.


Balance Sheet

Inventory Level: DERM has a low level of unsold assets or inventory.

Debt Coverage by Assets: DERM's debt is covered by short term assets (assets are 1.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: DERM has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: DERM has sufficient cash runway for 1.5 years if free cash flow continues to reduce at historical rates of -45% each year.


Next Steps

Dividend

What is Dermira's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.6%markettop25%4.1%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate DERM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate DERM's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DERM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DERM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DERM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.0yrs

Average management tenure


CEO

Tom Wiggans (67yo)

9.5yrs

Tenure

US$4,371,178

Compensation

Mr. Thomas G. Wiggans, also known as Tom, co-founded Dermira, Inc. in August 2010 and has been its Chief Executive Officer since August 2010. Mr. Wiggans serves as an Advisor at Stiefel Laboratories. He ha ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD4.37M) is above average for companies of similar size in the US market ($USD2.48M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Wiggans
Co-Founder9.5yrsUS$4.37m0.47% $4.8m
Luis Peña
Co-Founder & Chief Development Officer0yrsUS$2.52m0.031% $322.6k
Andrew Guggenhime
Chief Financial Officer5.8yrsUS$2.36m0.075% $767.4k
Christopher Horan
Chief Technical Operations Officer1.8yrsUS$2.36m0.036% $372.2k
Lori Lyons-Williams
Chief Commercial Officer3.2yrsUS$2.70m0.046% $476.3k
Eugene Bauer
Co-Founder9.5yrsUS$1.86m0.077% $793.3k
Christopher Griffith
Co-Founder and Chief Business & Strategy Officer9.5yrsUS$833.15k0.12% $1.2m
Erica Jefferson
Vice President of Corporate Communications0yrsno datano data
Mary Sillivos
Vice President of Human Resources6.1yrsno datano data
Janice Drew
Senior Vice President of Clinical & Project Management3.9yrsno datano data

6.0yrs

Average Tenure

52yo

Average Age

Experienced Management: DERM's management team is seasoned and experienced (6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Wiggans
Co-Founder9.5yrsUS$4.37m0.47% $4.8m
Eugene Bauer
Co-Founder9.5yrsUS$1.86m0.077% $793.3k
Frederick Craves
Lead Independent Director0yrsUS$140.23kno data
Jake Nunn
Non-Employee Director8.8yrsUS$115.23k0.011% $112.5k
Howard Maibach
Scientific Advisor0yrsno datano data
Matthew Fust
Non-Employee Director5.8yrsUS$128.73k0.0092% $94.7k
Seth Orlow
Scientific Advisor0yrsno datano data
David Cohen
Non-Employee Director5.7yrsUS$133.73k0.065% $669.1k
Brian Berman
Scientific Advisor0yrsno datano data
Sewon Kang
Scientific Advisor0yrsno datano data

5.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: DERM's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16%.


Top Shareholders

Company Information

Dermira, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dermira, Inc.
  • Ticker: DERM
  • Exchange: NasdaqGS
  • Founded: 2010
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$1.026b
  • Shares outstanding: 54.70m
  • Website: https://www.dermira.com

Number of Employees


Location

  • Dermira, Inc.
  • 275 Middlefield Road
  • Suite 150
  • Menlo Park
  • California
  • 94025
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DERMNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDOct 2014
19DDB (Deutsche Boerse AG)YesCommon SharesDEEUROct 2014

Biography

Dermira, Inc., a biopharmaceutical company, develops and commercializes therapies for patients with dermatologic diseases in the United States. The company offers QBREXZA, a topical once-daily anticholinergic cloth for the treatment of primary axillary hyperhidrosis in adult and pediatric patients nine years of age and older. It also develops lebrikizumab, a novel injectable humanized monoclonal antibody targeting interleukin 13 that is in Phase IIb clinical trial for the treatment of moderate-to-severe atopic dermatitis; and early-stage research and development programs in other areas of dermatology. Dermira, Inc. has a right of first negotiation agreement with Maruho Co., Ltd. to develop and commercialize glycopyrronium tosylate for the treatment of hyperhidrosis in Japan; an agreement with F. Hoffmann-La Roche Ltd and Genentech, Inc. to develop and commercialize lebrikizumab; and a development and commercialization agreement with UCB Pharma S.A. to develop Cimzia for the treatment of psoriasis. The company was formerly known as Skintelligence, Inc. and changed its name to Dermira, Inc. in September 2011. Dermira, Inc. was founded in 2010 and is headquartered in Menlo Park, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 01:07
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.