MeritValue

Journey Medical Corp

DERMdata completeness 88%6 fiscal years on file
The thesis, from the filings

Journey Medical Corp earns about -26% on invested capital, but has diluted owners by 140% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$63.1M1$71M2$59.7M3$55.1M4$61.2M4
Net income−$44M5−$29.6M6−$3.85M7−$14.7M8−$11.4M8
Operating cash flow−$2.18M9−$13.5M10$5.24M11−$9.13M12−$12.4M12
Capital expenditure—$20M13$5M14$15M15—
Free cash flow (derived)—−$33.5M10$240,00011−$24.1M12—
Total debt—$47.6M16$29.2M17$49.8M18$50.6M18
Cash & equivalents$49.1M19$32M20$27.4M21$20.3M22$24.1M22
Diluted shares10.2M17.5M18.2M20.4M24.5M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$13
your share of equity
Profit it earned you last year
−$4.67
Free cash flow it threw off
—
Debt you’d be carrying
$20.64

10 shares is a claim on $13 of net worth that earned you −$4.67 last year, against $20.64 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-26% avg · 5y
FY21 —FY22 -67%FY23 -7%FY24 -19%FY25 -10%

It earned an average -26% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+140% shares · 5y

Share count is up 140% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has held roughly steady.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001410578-23-000485 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001410578-24-000347 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001410578-25-000490 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2024-12-31 · accession 0001104659-26-034629 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-12-31 · accession 0001410578-23-000485 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001410578-24-000347 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001410578-25-000490 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001104659-26-034629 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001410578-23-000485 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001410578-24-000347 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001410578-25-000490 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001104659-26-034629 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2022-12-31 · accession 0001410578-24-000347 (PaymentsToAcquireProductiveAssets)
  14. 10-K · period ending 2023-12-31 · accession 0001410578-25-000490 (PaymentsToAcquireProductiveAssets)
  15. 10-K · period ending 2024-12-31 · accession 0001104659-26-034629 (PaymentsToAcquireProductiveAssets)
  16. 10-K · period ending 2022-12-31 · accession 0001410578-24-000347 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2023-12-31 · accession 0001410578-25-000490 (LongTermDebtNoncurrent)
  18. 10-K · period ending 2024-12-31 · accession 0001104659-26-034629 (LongTermDebtNoncurrent)
  19. 10-K · period ending 2021-12-31 · accession 0001410578-23-000485 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2022-12-31 · accession 0001410578-24-000347 (CashAndCashEquivalentsAtCarryingValue)
  21. 10-K · period ending 2023-12-31 · accession 0001410578-25-000490 (CashAndCashEquivalentsAtCarryingValue)
  22. 10-K · period ending 2024-12-31 · accession 0001104659-26-034629 (CashAndCashEquivalentsAtCarryingValue)