Dermapharm DMP.DE
What does Dermapharm do?
Dermapharm is a pharmaceutical manufacturer focused on branded products that are no longer patent-protected. The portfolio includes branded generics, over-the-counter preparations, vitamins, minerals, dietary supplements, and products in dermatology, allergology, pain therapy, cardiovascular, gynecology and urology. The offering is complemented by cosmetics and medical devices. Sales are made mainly in Germany and other European countries, as well as in the US and China.
The company reports in three segments: branded pharmaceuticals, other healthcare products and parallel imports. The branded business forms the higher-margin core, while the parallel import of original preparations is a trade-like business that is structurally less profitable. In terms of competition, Dermapharm acts as a provider of established brands with close ties to physicians and pharmacies. Its position rests on brand recognition, in-house production and acquired portfolios, but it competes with large generic manufacturers and international consumer goods groups.
Score profile
Rank vs. Drug Manufacturers - Specialty & Generic (25 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Dermapharm ranks above average in the group Drug Manufacturers - Specialty & Generic (6.5/10). On growth, the company ranks in the middle in the group Drug Manufacturers - Specialty & Generic (5.8/10). On valuation (higher = cheaper), the stock ranks in the middle in the group Drug Manufacturers - Specialty & Generic (5.8/10). On financial strength, Dermapharm ranks below average in the group Drug Manufacturers - Specialty & Generic (3.9/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 13.0x | 13.0x | better than 48 % |
| Trailing P/E | 13.9x | 18.3x | better than 76 % |
| EV/EBITDA | 9.3x | 11.1x | better than 61 % |
| Price/sales | 1.6x | 2.0x | better than 66 % |
| Price/book | 3.5x | 3.0x | better than 39 % |
| Revenue growth | 4.8% | 8.2% | better than 42 % |
| Earnings growth | 20.5% | 0.0% | better than 74 % |
| Gross margin | 65.4% | 63.8% | better than 62 % |
| Operating margin | 15.9% | 15.9% | better than 50 % |
| Net margin | 12.4% | 10.9% | better than 62 % |
| Return on equity | 25.6% | 8.2% | better than 86 % |
| Debt/equity | 219.3% | 84.9% | better than 18 % |
| Current ratio | 1.7x | 2.2x | better than 31 % |
| Free cash flow yield | 8.1% | 6.0% | better than 69 % |
| Dividend yield | 2.3% | 2.3% | – |
| Payout ratio | 31.8% | 28.8% | – |
| Beta | 0.85 | 0.71 | – |
Valuation: what is Dermapharm worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Dermapharm a model range of 38.41 EUR to 77.76 EUR per share.
4 analysts, average rating “Buy”, average price target 51.00 EUR (+32.5%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- Loyalty of physicians, pharmacies and patients to established brands supports sales and price levels in the core business over the long term.
- Acquisitions of brands and companies expand the portfolio and geographic reach.
- In-house manufacturing and proximity to active ingredients allow control over costs, quality and delivery capability.
Risks
- Regulatory price interventions, rebate contracts and reimbursement rules in the healthcare system can weigh on margins and sales.
- Acquisitions carry integration risks and can increase debt.
- The parallel import business depends on price differences and market rules and can fluctuate sharply in the short term.
What to look for with Dermapharm
The operating margin (adjusted EBITDA relative to revenue) shows how strongly the higher-margin branded share, compared with parallel imports, shapes profitability.