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DERM (Journey Medical) Beneish M-Score : -1.38 (As of Dec. 14, 2024)


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What is Journey Medical Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score -1.38 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Journey Medical's Beneish M-Score or its related term are showing as below:

DERM' s Beneish M-Score Range Over the Past 10 Years
Min: -4.94   Med: -3.39   Max: -1.38
Current: -1.38

During the past 5 years, the highest Beneish M-Score of Journey Medical was -1.38. The lowest was -4.94. And the median was -3.39.


Journey Medical Beneish M-Score Historical Data

The historical data trend for Journey Medical's Beneish M-Score 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.

* Premium members only.

Journey Medical Beneish M-Score Chart

Journey Medical Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
- - - -2.91 -3.19

Journey Medical Quarterly Data
Dec19 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -4.94 -3.19 -3.10 -2.09 -1.38

Competitive Comparison of Journey Medical's Beneish M-Score

For the Drug Manufacturers - Specialty & Generic subindustry, Journey Medical's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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's Beneish M-Score Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Journey Medical's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Journey Medical's Beneish M-Score falls into.



Journey Medical Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Journey Medical for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.8471+0.528 * 1.1252+0.404 * 0.8704+0.892 * 0.7231+0.115 * 0.981
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1506+4.679 * 0.132987-0.327 * 1.1262
=-1.38

* 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.

This Year (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was $10.67 Mil.
Revenue was 14.629 + 14.855 + 13.03 + 15.257 = $57.77 Mil.
Gross Profit was 9.344 + 8.314 + 6.214 + 9.242 = $33.11 Mil.
Total Current Assets was $46.16 Mil.
Total Assets was $64.04 Mil.
Property, Plant and Equipment(Net PPE) was $0.03 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.35 Mil.
Selling, General, & Admin. Expense(SGA) was $39.99 Mil.
Total Current Liabilities was $33.33 Mil.
Long-Term Debt & Capital Lease Obligation was $19.79 Mil.
Net Income was -2.39 + -3.361 + -10.442 + -2.143 = $-18.34 Mil.
Non Operating Income was 1.074 + -0.032 + -0.021 + -0.002 = $1.02 Mil.
Cash Flow from Operations was -1.157 + -5.176 + -5.019 + -16.52 = $-27.87 Mil.
Total Receivables was $7.99 Mil.
Revenue was 34.539 + 17.172 + 12.213 + 15.966 = $79.89 Mil.
Gross Profit was 28.11 + 9.405 + 5.764 + 8.248 = $51.53 Mil.
Total Current Assets was $44.69 Mil.
Total Assets was $65.92 Mil.
Property, Plant and Equipment(Net PPE) was $0.12 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.27 Mil.
Selling, General, & Admin. Expense(SGA) was $48.06 Mil.
Total Current Liabilities was $48.51 Mil.
Long-Term Debt & Capital Lease Obligation was $0.03 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(10.671 / 57.771) / (7.989 / 79.89)
=0.184712 / 0.1
=1.8471

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(51.527 / 79.89) / (33.114 / 57.771)
=0.644974 / 0.573194
=1.1252

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (46.162 + 0.032) / 64.044) / (1 - (44.686 + 0.124) / 65.918)
=0.278715 / 0.320216
=0.8704

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=57.771 / 79.89
=0.7231

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(4.265 / (4.265 + 0.124)) / (3.35 / (3.35 + 0.032))
=0.971748 / 0.990538
=0.981

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(39.985 / 57.771) / (48.056 / 79.89)
=0.692129 / 0.601527
=1.1506

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((19.785 + 33.333) / 64.044) / ((0.034 + 48.51) / 65.918)
=0.829399 / 0.73643
=1.1262

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(-18.336 - 1.019 - -27.872) / 64.044
=0.132987

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Journey Medical has a M-score of -1.38 signals that the company is likely to be a manipulator.


Journey Medical Beneish M-Score Related Terms

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Journey Medical Business Description

Traded in Other Exchanges
N/A
Address
9237 E Via de Ventura Boulevard, Suite 105, Scottsdale, AZ, USA, 85258
Journey Medical Corp is a commercial stage pharmaceutical company focused on the development and commercialization of pharmaceutical products for the treatment of dermatological conditions. The company's portfolio includes eight branded and three authorized generic prescription drugs for dermatological conditions that are marketed in the United States. Some of the group's products are Qbrexza, Accutane, Amzeeq, Exelderm and others.
Executives
Joseph Benesch officer: Interim CFO C/O TELIGENT, 105 LINCOLN AVENUE, BUENA NJ 08310
Rosenwald Lindsay A Md director 375 PARK AVE, NEW YORK NY 10152
Claude Maraoui director, officer: President & CEO C/O JOURNEY MEDICAL CORPORATION, 9237 E VIA DE VENTURA BLVD., SUITE 105, SCOTTSDALE AZ 85258
Justin Adam Smith director C/O JOURNEY MEDICAL CORPORATION, 9237 E VIA DE VENTURA BLVD., SUITE 105, SCOTTSDALE AZ 85258
Jeffrey Paley director C/O RETROPHIN INC., 777 THIRD AVENUE, 22ND FLOOR, NEW YORK NY 10017
De Paolantonio Ernest Robert officer: Chief Financial Officer 4131 PARKLAKE AVENUE SUITE 225, RALEIGH NC 27612
Neil Herskowitz director 2109 BROADWAY, SUITE 206, NEW YORK NY 10023
Miranda Jayne Toledano director C/O COMPASS THERAPEUTICS, INC., 80 GUEST STREET, SUITE 601, BOSTON MA 02135