Journey Medical (NasdaqCM:DERM) - Share price, News & Analysis

DERM fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	4/6
Past Performance	0/6
Financial Health	4/6
Dividends	0/6

DERM Stock Overview

Journey Medical Corporation focuses on the development and commercialization of pharmaceutical products for the treatment of dermatological conditions in the United States.

Rewards

Trading at 93.9% below our estimate of its fair value

Earnings are forecast to grow 60.59% per year

Revenue grew by 69.9% over the past year

Risk Analysis

Volatile share price over the past 3 months

Does not have a meaningful market cap ($55M)

Journey Medical Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Journey Medical
Historical stock prices
Current Share Price	US$3.13
52 Week High	US$10.20
52 Week Low	US$2.48
Beta	0
1 Month Change	-27.21%
3 Month Change	-31.36%
1 Year Change	n/a
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-67.05%

Recent News & Updates

May 12

US$12.00: That's What Analysts Think Journey Medical Corporation (NASDAQ:DERM) Is Worth After Its Latest Results

Journey Medical Corporation ( NASDAQ:DERM ) investors will be delighted, with the company turning in some strong...

Shareholder Returns

	DERM	US Pharmaceuticals	US Market
7D	7.2%	9.1%	6.6%
1Y	n/a	12.5%	-18.5%

Return vs Industry: Insufficient data to determine how DERM performed against the US Pharmaceuticals industry.

Return vs Market: Insufficient data to determine how DERM performed against the US Market.

Price Volatility

Is DERM's price volatile compared to industry and market?
DERM volatility
DERM Average Weekly Movement	14.6%
Pharmaceuticals Industry Average Movement	11.5%
Market Average Movement	8.0%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.1%

Stable Share Price: DERM is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: DERM's weekly volatility (15%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

Founded	Employees	CEO	Website
2014	90	Claude Maraoui	https://journeymedicalcorp.com

Journey Medical Corporation focuses on the development and commercialization of pharmaceutical products for the treatment of dermatological conditions in the United States. The company’s marketed products include Qbrexza, a medicated cloth towelette for the treatment of primary axillary hyperhidrosis; Accutane, an oral isotretinoin drug to treat severe recalcitrant acne; Targadox, an oral doxycycline drug for adjunctive therapy for severe acne; Ximino, an oral minocycline drug for the treatment of moderate to severe acne; and Exelderm cream and solution for topical use. It also sells doxycycline hyclate tablets, minocycline hydrocholoride capsules, and sulconazole nitrate cream and solution.

Journey Medical Fundamentals Summary

How do Journey Medical's earnings and revenue compare to its market cap?
DERM fundamental statistics
Market Cap	US$54.56m
Earnings (TTM)	-US$45.64m
Revenue (TTM)	US$75.71m

0.7x

P/S Ratio

-1.2x

P/E Ratio

Is DERM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
DERM income statement (TTM)
Revenue	US$75.71m
Cost of Revenue	US$29.88m
Gross Profit	US$45.83m
Other Expenses	US$91.47m
Earnings	-US$45.64m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-2.62
Gross Margin	60.54%
Net Profit Margin	-60.28%
Debt/Equity Ratio	50.8%

How did DERM perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is DERM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DERM?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for DERM. This is calculated by dividing DERM's market cap by their current preferred multiple.
What is DERM's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$54.56m

DERM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.5x
Enterprise Value/EBITDA	-2x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does DERM's PS Ratio compare to its peers?

DERM PS Ratio vs Peers

The above table shows the PS ratio for DERM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	83.9x

Forward PS

Price-To-Sales vs Peers: DERM is good value based on its Price-To-Sales Ratio (0.7x) compared to the peer average (83.9x).

Price to Earnings Ratio vs Industry

How does DERM's PE Ratio compare vs other companies in the U.S. Pharmaceuticals Industry?

Price-To-Sales vs Industry: DERM is good value based on its Price-To-Sales Ratio (0.7x) compared to the US Pharmaceuticals industry average (4x)

Price to Sales Ratio vs Fair Ratio

What is DERM's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DERM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.7x
Fair PS Ratio	3.6x

Price-To-Sales vs Fair Ratio: DERM is good value based on its Price-To-Sales Ratio (0.7x) compared to the estimated Fair Price-To-Sales Ratio (3.6x).

Share Price vs Fair Value

What is the Fair Price of DERM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DERM ($3.13) is trading below our estimate of fair value ($51.12)

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

Price to Earnings Growth Ratio

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

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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

60.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: DERM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: DERM is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DERM is expected to become profitable in the next 3 years.

Revenue vs Market: DERM's revenue (13.6% per year) is forecast to grow faster than the US market (8.3% per year).

High Growth Revenue: DERM's revenue (13.6% per year) is forecast to grow slower 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

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Past Performance

How has Journey Medical performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-1,193.2%

Last years 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: Insufficient data to determine if DERM's year-on-year earnings growth rate was positive over the past 5 years.

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 (14.7%).

Return on Equity

High ROE: DERM has a negative Return on Equity (-110.14%), as it is currently unprofitable.

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Financial Health

How is Journey Medical's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: DERM's short term assets ($90.3M) exceed its short term liabilities ($61.0M).

Long Term Liabilities: DERM's short term assets ($90.3M) exceed its long term liabilities ($18.5M).

Debt to Equity History and Analysis

Debt Level: DERM has more cash than its total debt.

Reducing Debt: Insufficient data to determine if DERM's debt to equity ratio has reduced over the past 5 years.

Balance Sheet

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: Insufficient data to determine if DERM has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.

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Dividend

What is Journey Medical current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as DERM has not reported any payouts.

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Management

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

0.6yrs

Average board tenure

CEO

Claude Maraoui (54 yo)

7.75yrs

Tenure

US$1,569,648

Compensation

Mr. Claude Maraoui is Founder and Director of Journey Medical Corporation since 2016 and its President and Chief Executive Officer since September 2014. Mr. Maraoui has experience in launching and commerci...

CEO Compensation Analysis

Compensation vs Market: Claude's total compensation ($USD1.57M) is above average for companies of similar size in the US market ($USD758.64K).

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

Board Members

Experienced Board: DERM's board of directors are not considered experienced ( 0.6 years average tenure), which suggests a new board.

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.

Ownership Breakdown

Dilution of Shares: DERM only recently listed within the past 12 months.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31