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STRATA Skin Sciences

SSKN
24
Medical - Devices · Healthcare
Price
$0.09
+0.00 (+0.00%)
Market Cap
$418,518
Winston Score
24
Winston is worried
Weak fundamentals across most pillars.

Share count rising — dilution

+36.6% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 34.1M (2021) → 46.5M (2025)

STRATA Skin Sciences makes medical devices and treatments for skin conditions. Its main product is the XTRAC laser system, which doctors use to treat psoriasis, vitiligo, and eczema. The company sells to dermatology clinics and physician offices across the United States.

STRATA makes money in two ways: it places XTRAC machines in clinics and collects a fee each time the device is used on a patient, and it also sells some devices outright. The company operates mainly in the U.S. but has an international presence through partnerships. With a small market cap and a negative operating margin, STRATA is not yet consistently profitable. Its recurring usage-fee model creates some predictable revenue, but the company faces real risk from competition with other light-based therapies and from its reliance on dermatologists actively using the machines enough to cover costs.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-3.0% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+108.2% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$421,000/ year

Declining (-52% vs prior year)

1.4% of revenue

Below sector average (18%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

53.0%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Runway

~4 years

$8M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

$8M cash & investments at current burn rate

Revenue declining

STRATA Skin Sciences's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
60.4%
Premium pricing power — 60.4% gross margin
Operating Margin
0.4%
Thin — 0.4% operating margin
ROCE
0.2%
Weak — 0.2% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-8.5%
Shrinking sales (-8.5% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
-14.3%
Burning cash (-14.3%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
5.51
Heavy debt load (5.51)
Interest Cover
N/A
Data not available

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Valuation

P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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