Fundamental analysis: Journey Medical Corporation (DERM)

Awarener score: 7.2

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (could not be estimated), the business stability (Very poor) and growth (Superb), and the company's inclination to return cash to the stockholders (Good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.0

Business has been growing at an extremely fast pace. It's been great when measured against peer companies.
Journey Medical Corporation business varies frequently, ups and downs are normal. It's risky. It looks worse than most rivals.

Margins score: 3.3

DERM profit margins -on goods and services sold- are usually huge. They stand better than most rival companies.
Business profit on sales tends to be extremely poor. It's weak when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually extremely poor. They remain in a weak position compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be extremely poor in relation to total revenues. They're still mediocre against similar companies.
Profits -before income taxes- are usually extremely poor considering total sales, and remain weak when measured against rivals.
Total net profit tends to be extremely poor when confronted to sales. Company stands weak when measured against comparable firms.

Growth score: 2.0

Journey Medical Corporation profit -on goods and services sold- has been growing at a very good pace. It's been a slight improvement compared to competitors.
In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
In past years, the company couldn't always turn a profit -available to repay debt and purchase properties-, which compares last-in-rank when measured against peer enterprises.
In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 3.0

DERM had still to pay income taxes, even though in recent past years mostly lost money. It's been bottom tier against peers.
Research and development expenses consume a substantial portion of revenues. It's weak when measured against competitors.
The company grows sparsely in relation to research and development efforts. It stands close to average when compared to rival companies.

Profitability score: 2.0

Journey Medical Corporation usually gets very poor returns on the resources it controls. It proves below average when measured against peer firms.
Due to insufficient track history, we were unable to estimate typical returns on invested capital (ROIC). They remain undisclosed in relation to similar companies.
Normal return on equity (ROE) is unavailable at this time, because of not enough yearly inputs to calculate. It ranks unknown against competitors.
In the past, got very poor returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's below average when measured against comparable enterprises.

Usage of Funds score: 4.6

DERM on average doesn't generate genuine funds, so to buy or replace property, plants and equipment must either burn existing cash or increase debt. It stands below average when measured against rival firms.
The company is usually somewhat investing in new property, plant, and equipment, to improve its operating capabilities, which is similar to industry peers.
In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
The company usually significantly reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains impressive in relation to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands lacking compared to rivals.
We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 5.1

Journey Medical Corporation intangible assets (like brands and goodwill) represent a significant portion of resources controlled, according to accounting books. There could be significant difficulties in liquidating them if the company ever gets in financial distress. It happens to be substantially worse when measured against peer companies.
The company has somewhat more short-term resources than short-term obligations. Liquidity concerns might not be that important. It turns to be in a weak position compared to similar firms.
Almost no resources controlled were provided for with financial debt. Financial strength is great. Company could significantly increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains top-notch against rival firms.
Most controlled resources can be made into cash reasonably quick, which is good for liquidity and risk. It looks similar to rivals.
For every dollar of short-term obligations, the company has roughly another of cash and short-term receivables. It's in a weak position compared to peer firms.
For every dollar of short-term obligations, the company has almost another of cash and equivalents, which is somewhat worse than similar enterprises.
Usually, sales are on somewhat more than three months credit. It still ranks below average when measured against peers.
Normally has approximately four months of sales worth in inventory. It comes up as rather normal in relation to competitors.
On average, it takes a lot of months from the purchase to charging customers. It happens to be slightly better than peers.
On average pays suppliers many months after the purchase. It ranks more than average in relation to industry peers.
The company charges its customers before it must pay its suppliers, so the more it sales, the more free funds it gets. It's excellent in relation to similar companies.
Has usually been losing money on the business, so net interest expenses must be paid by increasing borrowings, which is unsustainable in the long run. The situation is very risky for both creditors and shareholders, profitability must increase. It stands bottom tier against rival firms.
Business has usually been operated at a loss. Unless prospects improve, the company is no position to decrease loans taken levels but by additional shareholders' funding. Profitability must improve. It ranks last-in-rank when measured against comparable enterprises.
Revenues are huge in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements, allows the company to keep more money to reward stockholders in the long run. It looks impressive in relation to similar firms.
Resource exploitation is very good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still better than most peer companies.

Valuation score: 4.7

Journey Medical Corporation reported losses, so valuating it in relation to earnings is meaningless. It happens to be last-in-rank when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
There is insufficient information on the genuine funds generation capability showed in the past twelve months, which stands as an incognita in relation to similar companies.
Unfortunately, lack of enough yearly data impaired our ability to estimate the normal earnings power. It's still an unknown variable to measure against industry firms.
In the past twelve months, the company has barely rewarded investors, considering both dividends and share on the pie of earnings. It came up in good shape compared to peer ventures.
We are unsure on the relationship between net financial position and market capitalization of the stock. It looks we will not be able to reach a conclusion regarding similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation has been negative, as the company lost money. It ranks last-in-rank when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a very low relationship. One common cause includes profitability being very poor. It looks excellent in relation to rival firms.
The relation between the stock price and accounting book value might be more than reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains somewhat better than peer firms.
We could not gauge an alternative metric of earnings power of the past twelve months. It happens to be an interesting metric to relate to industry peers.
An alternate metric on the usual genuine-funds generation ability could not be provided. It's still unknown against peer companies.

Total score: 3.8

Company at a glance: Journey Medical Corporation (DERM)

Sector, industry: Healthcare, Drug Manufacturers—Specialty & Generic

Market Cap: 0.02 billions

Revenues TTM: 0.10 billions

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. The company was formerly known as Coronado Dermatology, Inc. and changed its name to Journey Medical Corporation. Journey Medical Corporation was incorporated in 2014 and is headquartered in Scottsdale, Arizona.