DERM (Journey Medical) ROE %: -28.46% (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 ROE %?

Journey Medical DERM +2.39% 63 ROE % is -28.46% 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 936 Drug Manufacturers companies, Journey Medical ranks worse than 89.21% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Journey Medical's annualized net income for the quarter that ended in Mar. 2026 was $-8.92 Mil. Journey Medical's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $31.34 Mil. Therefore, Journey Medical's annualized ROE % for the quarter that ended in Mar. 2026 was -28.46%.

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

DERM' s ROE % Range Over the Past 10 Years
Min: -168.12   Med: -44.03   Max: 131.72
Current: -37.06

During the past 7 years, Journey Medical's highest ROE % was 131.72%. The lowest was -168.12%. And the median was -44.03%.

DERM's ROE % is ranked worse than
89.21% of 936 companies
in the Drug Manufacturers industry
Industry Median: 5.865 vs DERM: -37.06

Journey Medical  (NAS:DERM) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=-8.92/31.3415
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-8.92 / 63.844)*(63.844 / 93.0615)*(93.0615 / 31.3415)
=Net Margin %*Asset Turnover*Equity Multiplier
=-13.97 %*0.686*2.9693
=ROA %*Equity Multiplier
=-9.58 %*2.9693
=-28.46 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=-8.92/31.3415
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-8.92 / -8.92) * (-8.92 / -5.968) * (-5.968 / 63.844) * (63.844 / 93.0615) * (93.0615 / 31.3415)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1 * 1.4946 * -9.35 % * 0.686 * 2.9693
=-28.46 %

Note: The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Journey Medical ROE % Related Terms


Journey Medical ROE % Historical Data

* Premium members only.

The historical data trend for Journey Medical's ROE % 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 ROE % Chart

Journey Medical Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROE %
Get a 7-Day Free Trial -168.12 -100.39 -20.64 -72.60 -44.03

Journey Medical Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROE % 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 -78.31 -74.46 -41.02 -17.27 -28.46

DERM vs LFCR, ANIK, ASRT: ROE % Comparison

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

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

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


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

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

ROE %=Net Income (A: Dec. 2025 )/( (Total Stockholders Equity (A: Dec. 2024 )+Total Stockholders Equity (A: Dec. 2025 ))/ count )
=-11.431/( (20.069+31.852)/ 2 )
=-11.431/25.9605
=-44.03 %

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

ROE %=Net Income (Q: Mar. 2026 )/( (Total Stockholders Equity (Q: Dec. 2025 )+Total Stockholders Equity (Q: Mar. 2026 ))/ count )
=-8.92/( (31.852+30.831)/ 2 )
=-8.92/31.3415
=-28.46 %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Mar. 2026) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of -28.46% mean?
Journey Medical (DERM) has a ROE % of -28.46% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Journey Medical and its competitors. According to the industry distribution chart, Journey Medical ranks #835 out of 936 companies in the Drug Manufacturers industry, placing it in the top 89.2%.
Is Journey Medical's ROE % too high?
Journey Medical's current ROE % is -28.46%. Based on the distribution chart, Journey Medical ranks #835 out of 936 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 ROE % compare to LFCR and ANIK?
According to the Drug Manufacturers industry distribution chart, Journey Medical ranks #835 out of 936 companies for ROE %. This places Journey Medical in the lower half of its industry. The industry median ROE % is 5.87. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Drug Manufacturers company?
The median ROE % among Drug Manufacturers companies is 5.87, based on 936 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Journey Medical and its competitors. For the Drug Manufacturers industry, the median ROE % is 5.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Journey Medical's current ROE % is -28.46%. 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 ROE % is -28.46%. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Journey Medical (DERM), the current ROE % is -28.46% 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:

  • ROE %: -28.46%
  • 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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ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$6.85
Price
$4.17
GF Value