Journey Medical Corp(DERM)

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EXPLORE ADVISORIES AND THEIR HISTORY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$4.79
11/02/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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  • 1M
  • 1W
  • BUY Advisory
  • SELL Advisory (Profit)
  • SELL Advisory (Loss)
  • Profit
  • Loss
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Upturn Stock price based on last close iconStock price based on last close
Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Advisory Performance History (Simulated)Advisory Performance History info

Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Upturn Advisory & Investor View for DERM

11/02/2026: DERM (1-star) is currently NOT-A-BUY. Pass it for now.

Journey Medical Corp is a commercial-stage pharmaceutical company focused on the dermatology sector, specializing in the acquisition and marketing of prescription skin treatments. Its primary business strength lies in a dedicated sales force and a diverse, though concentrated, portfolio of approved products like Qbrexza. The main growth story hinges on successfully increasing the market penetration of its core brands and advancing its pipeline assets. However, investors face significant risks, including intense competition from generic alternatives, the potential for high cash burn, and clinical development challenges. This stock may suit investors willing to accept high volatility in exchange for potential growth, provided they closely monitor product sales performance and pipeline progress.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitThe company targets high-growth segments in dermatology but faces execution risk.
Momentum investorWeak fitThe stock often lacks sustained momentum without major news catalysts.
Value investorWeak fitThe company is often loss-making with high valuation multiples relative to current earnings.
Dividend investorWeak fitThe company does not pay dividends and prioritizes capital for growth.
Low-risk investorWeak fitThe clinical and commercial risks make this a high-volatility investment.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityHighSmall-cap biotech stocks frequently experience significant price swings.
Valuation riskMedium / highThe stock price is driven more by future expectations than current profit.
Competition risk (Generic and Branded)HighEstablished players and generic entrants can quickly erode market share.
Business qualityMediumThe business relies on successful commercial execution of a narrow product portfolio.
Dividend incomeLow / noneInvestors should not expect any income from this security.
Execution riskHighFailure to grow sales of key products would significantly impact the company's viability.

Price Behavior

Downtrend
PRICE PATH

Downtrend

The stock has experienced a sustained decline in price over recent periods.

Extreme Price Shocks
PRICE STABILITY

Extreme Price Shocks

The stock has experienced exceptionally large and disruptive price movements during the period.

Analysis of Past Performance

Type Stock
Historic Profit -30.62%
Avg. Invested days 27
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 11/02/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
DERM receives a 3-star rating, supported by solid company fundamentals, and solid analyst coverage. The rating is constrained by weak unit economics, soft quantitative characteristics, and weak price momentum.

Company Fundamentals

★★★★★
DERM has solid overall fundamentals (4 stars), with moderate financial health, solid growth momentum, and solid ownership. In FY2025 versus FY2024, solid earnings growth (+22.1%) and solid revenue growth (+10.2%) are partially offset by weak cash generation (FCF margin -20.1%), weak profitability (net margin -18.5%).

Financial Health Rating

★★★★★
DERM's financial health is supported by solid liquidity, including working-capital and asset support (WC/assets 31.1%). Profitability is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is DERM's strongest growth driver at +48.4% FY2025 versus FY2024 (strong, 5 stars). Revenue growth (+10.2%, solid) and earnings growth (+22.1%, solid) are also constructive, though not equally high across every growth measure.

Ownership

★★★★★
Institutional ownership is 47.9% and approximately 70.2% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 31.75% supports management-shareholder alignment.

Top 5 Institutional Investors

Wasatch Advisors LP 10.13%
TANG CAPITAL MANAGEMENT LLC 5.70%
Vanguard Capital Management, LLC 2.39%
Punch & Associates Inv Mgmt Inc 1.90%
Pale Fire Capital SE 1.87%

Unit Economics (Per $1K Revenue)

★★★★★
DERM generates approximately $593 of gross profit, $-132 of operating income, and $-201 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Operating losses and cash burn explain the 1-star rating, with weak cash conversion and weak capital efficiency.

Economic Dimensions

★★★★★
Effective Tax Rate: -0.53% (Tax Credit)

Quantitative Style Profile

★★★★★
DERM has a liquid profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

Small / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 145.92M USD
Price to earnings Ratio -
1Y Target Price 13.75
Price to earnings Ratio -
1Y Target Price 13.75
Volume (30-day avg) 200.1K shares
Beta 1.11
52 Weeks Range 4.31 - 9.55
Updated Date 11/01/2026
52 Weeks Range 4.31 - 9.55
Updated Date 11/01/2026
Dividends yield (FY) -
Basic EPS (TTM) -0.22

How Company Makes Money

Business areaWhat it includesRetail investor read
Product SalesRevenue from the sale of Qbrexza, Ameluz, and other dermatological products.The company makes money by selling prescription drugs for skin conditions to dermatologists and pharmacies.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Valuation

Trailing PE -
Forward PE 20.7
Enterprise Value 146.10M
Price to Sales(TTM) 2.14
Enterprise Value 146.10M
Price to Sales(TTM) 2.14
Enterprise Value to Revenue 2.14
Enterprise Value to EBITDA 77.14
Shares Outstanding 22.22M
Shares Floating 15.59M
Shares Outstanding 22.22M
Shares Floating 15.59M
Percent Insiders 31.75
Percent Institutions 47.94

Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

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