Journey Medical Corporation — Earnings Quality Grade F
DERM · Healthcare
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO surged by 109 days (67 → 176)
Small-cap context: DSO swings on a small revenue base are more often quarterly customer-mix effects than red flags.
AR growth 191.1% exceeds revenue growth 10.2%
Revenue grew 10.2% but CFFO declined -36.3%
Small-cap context: Small-cap revenue/CFFO ratio is sensitive to growth-stage working-capital draws.
Expense Quality
Inventory -33.3% vs COGS 0.2%. Normal
Insufficient data
SG&A/Gross Profit = 108.4%, exceeds 70%
Gross margin rose +3.4pp while AR increased and AP decreased. Fraud pattern
Cash Flow Quality
CFFO/NI = 1.09. Profits backed by cash
FCF is negative ($-0.0B)
Accruals ratio = 1.1%. Low accruals
Cash $0.0B covers 95% of debt $0.0B
Balance Sheet Health
Goodwill+Intangibles $0.0B = 87% of equity. Over 50%
Interest coverage = -2.2x (<2x). Financial stress
Insufficient data
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -13% YoY. Normal
Manipulation Score
M-Score = -0.93 (> -1.78). LIKELY MANIPULATOR
Small-cap context: Beneish M-Score was calibrated on large-caps; small-cap DSO/inventory volatility mechanically inflates it.
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25