Collegium Pharmaceutical (COLL) AI Stock Analysis

• Market Cap: $888.44M
• Dividend Yield: N/A
• Average Volume (3M): 358.80K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.21
• Revenue Growth: 11.41%
• EPS Growth: 45.89%
• Country: US
• Employees: 357
• Sector: Healthcare
• Sector Strength: 53
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 1.77
• Shares Outstanding: 32,131,798
• 10 Day Avg. Volume: 269,983
• 30 Day Avg. Volume: 358,802
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.19
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 5.14
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $43.00
• Price Target Upside: 58.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Collegium Pharmaceutical's stock score is driven by strong financial performance and promising growth prospects. High leverage remains a key risk, but effective cash management and strategic initiatives bode well for future performance. Technical analysis indicates a cautious market sentiment, while valuation is reasonable. The earnings call further supports optimism with growth in key product lines, despite some operational challenges.

Positive Factors

Financial Performance

COLL reported a solid 4Q24 top-line of $181.9MM, vs. Street's $179.8MM, on the strength of Xtampza and Belbuca, due to Rx growth and improved GTNs.

Product Portfolio

Jornay PM is highlighted as a key growth driver for the company.

Stock Valuation

The stock price appears undervalued, with potential for significant appreciation as the market recognizes the durability of the company's pain portfolio.

Negative Factors

Generic Competition

Despite potential risks from generic competition, Collegium is projected to generate significant cumulative adj-EBITDA and operating cash flow through 2028, which exceeds its current enterprise value.

Revenue Growth

A small adjustment is made to reflect the expected seasonal slowdown in sales due to Rx re-authorizations and insurance deductible resets.

Seasonality

Seasonality factors typically lead to a revenue step-down in the first quarter, affecting the company's financial performance compared to the fourth quarter.

Collegium Pharmaceutical Business Overview & Revenue Model

Company Description

Collegium Pharmaceutical, Inc., a specialty pharmaceutical company, develops and commercializes medicines for pain management. Its portfolio includes Xtampza ER, an abuse-deterrent, extended-release, oral formulation of oxycodone; Nucynta ER and Nucynta IR, which are extended-release and immediate-release formulations of tapentadol; and Xtampza ER for the management of pain severe enough to require daily, around-the-clock, long-term opioid treatment. The company was formerly known as Collegium Pharmaceuticals, Inc. and changed its name to Collegium Pharmaceutical, Inc. in October 2003. Collegium Pharmaceutical, Inc. was incorporated in 2002 and is headquartered in Stoughton, Massachusetts.

How the Company Makes Money

Collegium Pharmaceutical generates revenue primarily through the sale of its pharmaceutical products, with a significant portion coming from Xtampza ER. The company employs a direct sales model, marketing its products to healthcare providers, including pain specialists and primary care physicians. Collegium also benefits from strategic partnerships with other pharmaceutical companies to expand its product offerings and enhance its distribution capabilities. Additionally, the company may earn milestone and royalty payments from licensing agreements. Factors such as pricing, market demand, and prescription volumes significantly influence its earnings.

Collegium Pharmaceutical Financial Statement Overview

Summary

Collegium Pharmaceutical has shown strong financial performance with impressive revenue growth and improved profitability. The balance sheet reflects high leverage, but the company efficiently generates returns on equity. Cash flow metrics are strong, highlighting effective cash management. While the company should monitor its leverage, the overall financial health appears solid, supporting continued growth and profitability.

Income Statement

Collegium Pharmaceutical has shown impressive revenue growth with a recent increase from $566.8M to $631.4M, translating to an 11.4% growth rate. The gross profit margin stands strong at 59.8%, and the net profit margin has improved significantly to 10.9%, indicating enhanced profitability. However, EBIT and EBITDA margins remain stable, suggesting consistent operational efficiency. Overall, the company exhibits a robust growth trajectory with improving profitability metrics.

Balance Sheet

The company maintains a high debt-to-equity ratio of 3.75, indicating potential leverage risk. However, the return on equity is a healthy 30.2%, showcasing effective utilization of equity capital. The equity ratio is modest at 13.7%, pointing to a balanced asset structure but with room for strengthening equity. In summary, while leverage is a concern, the company is efficiently generating returns on equity.

Cash Flow

Collegium Pharmaceutical has a strong operating cash flow to net income ratio of 2.96, demonstrating excellent cash generation capabilities. The free cash flow to net income ratio is also robust at 2.94, reflecting efficient cash management. However, the free cash flow has slightly decreased from the previous year, indicating a need for careful monitoring of cash expenditures. Overall, the cash flow health is strong with effective cash conversion from income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
631.45M	566.77M	463.93M	276.87M	310.02M
	Gross Profit
377.34M	326.17M	209.49M	150.62M	179.84M
	EBIT
169.90M	166.96M	-104.57M	-46.70M	-5.09M
	EBITDA
169.90M	308.33M	168.76M	86.58M	118.07M
	Net Income Common Stockholders
69.19M	48.16M	-25.00M	71.52M	26.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
162.76M	310.55M	173.69M	186.43M	174.12M
	Total Assets
1.66B	1.14B	1.17B	692.08M	643.84M
	Total Debt
859.30M	674.28M	872.79M	258.75M	266.58M
	Net Debt
788.73M	435.34M	699.10M	72.32M	92.47M
	Total Liabilities
1.43B	947.88M	979.29M	489.15M	457.81M
	Stockholders Equity
228.84M	195.43M	194.84M	202.93M	186.03M
Cash Flow		Free Cash Flow
203.33M	274.29M	122.61M	101.61M	-279.83M
	Operating Cash Flow
204.98M	274.75M	124.23M	103.56M	93.94M
	Investing Cash Flow
-287.76M	-70.81M	-573.69M	-1.94M	-373.77M
	Financing Cash Flow
-60.60M	-140.18M	436.72M	-89.30M	286.47M

Collegium Pharmaceutical Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COLL, the sentiment is Negative. The current price of 27.05 is above the 20-day moving average (MA) of 26.75, below the 50-day MA of 28.28, and below the 200-day MA of 32.49, indicating a neutral trend. The MACD of -0.30 indicates Negative momentum. The RSI at 46.23 is Neutral, neither overbought nor oversold. The STOCH value of 68.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for COLL.

Collegium Pharmaceutical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COLL	70 Outperform	$888.44M	15.03	32.62%	―	11.41%	45.89%
XERS	55 Neutral	$661.94M	―	222.83%	―	23.89%	16.86%
MLYS	53 Neutral	$938.11M	―	-82.24%	―	―	-106.10%
Sector *	52 Neutral	$5.23B	3.70	-41.86%	2.84%	16.58%	-0.16%
VIR	51 Neutral	$777.30M	―	-38.09%	―	-13.90%	16.56%
HROW	47 Neutral	$884.85M	―	-24.97%	―	53.32%	33.82%
NRIX	47 Neutral	$735.29M	―	-64.16%	―	-30.25%	-5.92%

Collegium Pharmaceutical Corporate Events

Collegium Pharmaceutical Appoints New Executive VP and General Counsel

Collegium Pharmaceutical announced the appointment of David Dieter as Executive Vice President and General Counsel, effective March 17, 2025. Mr. Dieter brings extensive legal experience from his previous roles, including serving as Vice President, Legal at Horizon Therapeutics USA, Inc., and holding leadership positions at Takeda. His appointment is expected to strengthen Collegium’s legal and business development capabilities.

Collegium Pharmaceutical Reports Record 2024 Financial Results

On February 27, 2025, Collegium Pharmaceutical reported record financial results for the fourth quarter and full year of 2024, with net revenues reaching $181.9 million for the quarter and $631.4 million for the year. The company achieved a GAAP net income of $12.5 million for the quarter and $69.2 million for the year, alongside a record adjusted EBITDA of $107.7 million for the quarter and $401.2 million for the year. The company also repurchased $60 million in shares in 2024 and reaffirmed its financial guidance for 2025, indicating a strong position for future growth.