DERM (Journey Medical) Operating Margin %: -9.35% (As of Mar. 2026)


DERM Journey Medical Corp DERM
63 GF Score
Price $6.85
GF Value $4.17
Valuation Significantly Overvalued
! 3 Warning Signs
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What is Journey Medical Operating Margin %?

Journey Medical DERM +2.39% 63 Operating Margin % is -9.35% as of Mar. 2026. 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 955 Drug Manufacturers companies, Journey Medical ranks worse than 79.06% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Journey Medical's Operating Income for the three months ended in Mar. 2026 was $-1.49 Mil. Journey Medical's Revenue for the three months ended in Mar. 2026 was $15.96 Mil. Therefore, Journey Medical's Operating Margin % for the quarter that ended in Mar. 2026 was -9.35%.

The historical rank and industry rank for Journey Medical's Operating Margin % or its related term are showing as below:

DERM' s Operating Margin % Range Over the Past 10 Years
Min: -40.14   Med: -13.21   Max: 17.63
Current: -9.8


DERM's Operating Margin % is ranked worse than
79.06% of 955 companies
in the Drug Manufacturers industry
Industry Median: 7.45 vs DERM: -9.80

Journey Medical's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Journey Medical's Operating Income for the three months ended in Mar. 2026 was $-1.49 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $-6.34 Mil.


Journey Medical  (NAS:DERM) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Journey Medical Operating Margin % Related Terms


Journey Medical Operating Margin % Historical Data

* Premium members only.

The historical data trend for Journey Medical's Operating 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.

Journey Medical Operating Margin % Chart

Journey Medical Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial -40.14 -37.35 1.35 -32.48 -13.21

Journey Medical Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Margin % 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 Premium Member Only -25.30 -19.16 -8.67 -2.76 -9.35

DERM vs LFCR, ANIK, ASRT: Operating Margin % Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Journey Medical's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Journey Medical's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Journey Medical's Operating Margin % falls into.


DERM
63GF Score
Journey Medical Corp DERM
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Journey Medical Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Journey Medical's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=-8.172 / 61.858
=-13.21 %

Journey Medical's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=-1.492 / 15.961
=-9.35 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of -9.35% mean?
Journey Medical (DERM) has a Operating Margin % of -9.35% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Journey Medical and its competitors. According to the industry distribution chart, Journey Medical ranks #755 out of 955 companies in the Drug Manufacturers industry, placing it in the top 79.1%.
Is Journey Medical's Operating Margin % too high?
Journey Medical's current Operating Margin % is -9.35%. Based on the distribution chart, Journey Medical ranks #755 out of 955 companies in the Drug Manufacturers industry, which is in the bottom quartile 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 Operating Margin % compare to LFCR and ANIK?
According to the Drug Manufacturers industry distribution chart, Journey Medical ranks #755 out of 955 companies for Operating Margin %. This places Journey Medical in the lower half of its industry. The industry median Operating Margin % is 7.45. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.45, based on 955 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Journey Medical and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Journey Medical's current Operating Margin % is -9.35%. 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 Operating Margin % is -9.35%. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Journey Medical (DERM), the current Operating Margin % is -9.35% 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:

  • Operating Margin %: -9.35%
  • GF Value™: $4.17 vs. price of $6.85 (64.3% above fair value)
  • GF Score™: 63/100 with 3 warning signs

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 Business Description

Address 9237 E Via de Ventura Boulevard, Suite 105, Scottsdale, AZ, USA, 85258
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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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$6.85
Price
$4.17
GF Value