Journey MedicalDERM +2.39%63 Gross Margin % is 61.04% as of Mar. 2026, which is 8% below its 10-year median of 66.17. GuruFocus rates DERM with a GF Score™ of 63/100 and a GF Value™ of $4.17 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 938 Drug Manufacturers companies, Journey Medical ranks better than 76.97% on this metric.
The historical rank and industry rank for Journey Medical's Gross Margin % or its related term are showing as below:
DERM'
s Gross Margin % Range Over the Past 10 Years
Min: 49.18 Med: 66.17 Max: 71.09
Current: 65.44
During the past 7 years, the highestGross Margin % of Journey Medical was 71.09%. The lowest was 49.18%. And the median was 66.17%.
DERM's Gross Margin % is ranked better than 76.97% of 938
companies
in the Drug Manufacturers industry
Industry Median: 48.44
vs DERM: 65.44
Journey Medical had a gross margin of 61.04% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Journey Medical was 2.50% per year.
Journey Medical (NAS:DERM) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Journey Medical had a gross margin of 61.04% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Journey Medical Gross Margin % Related Terms
Journey Medical Gross Margin % Historical Data
* Premium members only.
The historical data trend for Journey Medical's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
DERM vs LFCR, ANIK, ASRT: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Journey Medical's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Journey Medical Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Journey Medical's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Journey Medical's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Journey Medical (DERM) has a Gross Margin % of 61.04% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Journey Medical and its competitors. This is near median its historical median of 66.17. Over the past decade, Journey Medical's Gross Margin % has ranged from 49.18 to 71.09. According to the industry distribution chart, Journey Medical ranks #216 out of 938 companies in the Drug Manufacturers industry, placing it in the top 23%.
Is Journey Medical's Gross Margin % too high?
Journey Medical's current Gross Margin % of 61.04% is near median its 10-year median of 66.17. Over the past 10 years, this metric has ranged from a low of 49.18 to a high of 71.09. The Drug Manufacturers industry median Gross Margin % is 48.44. Journey Medical's value of 61.04% is 26% above this industry median. Based on the distribution chart, Journey Medical ranks #216 out of 938 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Journey Medical has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Journey Medical's Gross Margin % compare to LFCR and ANIK?
According to the Drug Manufacturers industry distribution chart, Journey Medical ranks #216 out of 938 companies for Gross Margin %. This places Journey Medical in the top 23% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 48.44. Journey Medical's value of 61.04% is 26% above this benchmark. Historically, Journey Medical's own Gross Margin % has ranged from 49.18 to 71.09 over the past decade. While the company's 10-year median is 66.17 vs. the industry median of 48.44, Journey Medical has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.44, based on 938 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Journey Medical's current Gross Margin % of 61.04% is 26% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Journey Medical and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Journey Medical's current Gross Margin % is 61.04%, which is near median its own 10-year median of 66.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Journey Medical stock overvalued right now?
Based on GuruFocus' analysis, Journey Medical (DERM) is currently considered Significantly Overvalued. The stock's GF Value™ is $4.17, compared to a current price of $6.85 — trading 64.3% above its estimated fair value. The current Gross Margin % is 61.04%, which is near median its 10-year median of 66.17 and 26% above the Drug Manufacturers industry median of 48.44. Journey Medical's overall GF Score™ is 63/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Journey Medical (DERM), the current Gross Margin % is 61.04% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Journey Medical (DERM) Overvalued in 2026?
Based on GuruFocus' analysis, Journey Medical stock appears to be overvalued.
The current stock price of $6.85 is trading 64.3% above its estimated GF Value™ of $4.17.
GuruFocus considers Journey Medical to be Significantly Overvalued.
Key valuation signals for DERM:
Gross Margin %: 61.04% (near median its 10-year median of 66.17)
GF Value™: $4.17 vs. price of $6.85 (64.3% above fair value)
Industry Position: 26% above the Drug Manufacturers median (#216 of 938)
No single metric tells the full story. See the DERM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Journey Medical Corp is a commercial-stage pharmaceutical company that focuses on the selling and marketing of U.S. Food and Drug Administration (FDA) approved prescription pharmaceutical products for the treatment of dermatological conditions. Its current product portfolio includes FDA-approved prescription drugs for dermatological conditions that are marketed in the U.S. The company views its operations and manages its business in one segment, which reflects products for the treatment of dermatological conditions. The dermatological segment derives revenues from the sale of branded and authorized general prescription products that treat certain dermatological conditions.
63GF Score
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