One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
STRATA Skin Sciences, Inc.
SSKN · PNK · Healthcare · Medical Devices
Current price
$0.00
52-week range
$0.00 - $1.73
Market cap
$588.00
Balance sheet
Distressed
-2.98x Concerning
Net debt $8.36M. Interest coverage shows how many times profit covers the interest bill.
What stands out
0 Rewards
3 Risks
0 rewards · 3 risks
- Risk Net debt grew 177.9% over 3 years.
- Risk Return on equity was -158.9% last year — the company lost money on shareholders' equity.
- Risk Insider ownership is only 3.8% (peer median: 16.1%).
What this company does
STRATA Skin Sciences, Inc.
STRATA Skin Sciences makes medical devices that help treat skin issues like psoriasis and acne, selling them to doctors' offices around the world. Most of their income comes from the ongoing use of their equipment, meaning doctors regularly pay to use the devices to treat patients, which is called recurring revenue (money earned repeatedly from the same customers). This recurring revenue is important because it helps the company have a more predictable stream of money coming in.
How the company got here
STRATA Skin Sciences, originally founded as MELA Sciences in 1989, has evolved significantly over the years. A key turning point was its acquisition of PhotoMedex Inc. in July 2015, which led to a rebranding to STRATA Skin Sciences and a relocation of its headquarters. This strategic move expanded the company's focus beyond its initial melanoma diagnostic tool, MelaFind, to encompass a broader range of dermatological treatments. The company has since continued to grow its product portfolio through acquisitions, such as adding the TheraClear acne treatment system, aiming to become a comprehensive provider in the medical dermatology space.
What it actually does
STRATA Skin Sciences is a medical technology company that develops and sells devices used by dermatologists to treat various skin conditions. Think of them as creating specialized tools that doctors use in their offices to help patients with issues like psoriasis, vitiligo, and acne. These aren't over-the-counter creams; they are professional-grade medical devices that require a doctor's expertise to operate and provide treatment.
Dermatology Recurring Procedures
This business line is STRATA's primary way of making money, generating about 84% of its revenue in late 2015. It involves dermatologists using STRATA's equipment, like the XTRAC laser, to perform treatments on patients. Instead of selling the equipment outright, STRATA often operates on a 'fee-per-treatment' model. This means the company earns money each time a procedure is done using their devices, creating a steady stream of income that is often referred to as recurring revenue. This segment focuses on conditions like psoriasis and vitiligo.
Dermatology Procedures Equipment
This segment is where STRATA Skin Sciences makes money by selling its medical devices directly to dermatology clinics and dermatologists. These devices include advanced laser systems and lamp systems designed for treating specific skin conditions. While this segment also contributes to the company's revenue, it's generally smaller than the recurring procedures business. The revenue here comes from the initial sale of the equipment, rather than ongoing usage fees.
What management is betting on now
STRATA Skin Sciences is focusing on expanding its reach and product offerings. A key strategy is leveraging its intellectual property to combine its laser therapies with other treatments, like medications, to create more effective hybrid treatments for difficult-to-treat skin conditions. The company is also actively working to broaden the approved uses for its XTRAC excimer laser, aiming to significantly increase the number of patients who can benefit from its technology and be covered by insurance. Additionally, STRATA is expanding its presence in international markets, like Mexico, to grow its recurring revenue streams.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value — vs current price $0.00
We couldn't calculate a fair value right now.
Is it drowning in debt?
Distressed
Net debt $8.4M. Interest coverage -3.0x.
Net debt
$8.36M
Interest coverage
-2.98x
STRATA Skin Sciences, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
SSKN
BASELINE
STRATA Skin Sciences, Inc.
Total debt $16.27M Interest coverage -2.98x This is the baseline the peer rows are being compared against.
Total debt $39.63M Interest coverage -1.15x Neither company has much profit cushion over interest right now.
Total debt $343.00K Interest coverage -5,153.50x Neither company has much profit cushion over interest right now.
What you should know
The case for and against SSKN
0 Rewards
3 Risks
Rewards
Risks
-
Net debt grew 177.9% over 3 years.
-
Return on equity was -158.9% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 3.8% (peer median: 16.1%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-0.00x
P/B
0.00x
P/S
0.00x
EV/EBITDA
-4.88x
PEG ratio
0.03x
Profitability
How much profit each dollar creates
Gross margin
58.3%
Operating margin
0.4%
Net margin
-20.4%
ROE
-158.9%
ROA
-11.1%
Health
Liquidity and balance-sheet strength
Debt / equity
5.59x
Current ratio
0.58x
Quick ratio
0.45x
Total debt
$16.27M
Total cash
$7.91M
Growth
How the business has been compounding
Revenue TTM
$30.70M
Revenue 5Y CAGR
-5.3%
EPS TTM
-1.35
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-2.79M
Free CF TTM
$-4.26M
FCF margin
-13.9%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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