Collegium Pharmaceutical (COLL) AI Stock Analysis

• Market Cap: $1.13B
• Dividend Yield: N/A
• Average Volume (3M): 468.29K
• Price to Earnings (P/E): 34.5
• Beta (1Y): 0.40
• Revenue Growth: 22.61%
• EPS Growth: -63.00%
• Country: US
• Employees: 357
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 1.68
• Shares Outstanding: 31,502,127
• 10 Day Avg. Volume: 512,656
• 30 Day Avg. Volume: 468,292
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.66
• Enterprise Value/Revenue: 2.64
• Enterprise Value/Gross Profit: 4.65
• Enterprise Value/Ebitda: 5.38
• 1Y Price Target: $42.60
• Price Target Upside: 19.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 65 Neutral
• Price Target: $38.00 ▲(6.29% Upside)

Collegium Pharmaceutical's overall stock score is driven by strong financial performance and positive earnings call sentiment, highlighting robust revenue growth and strategic investments. However, high leverage, increased operating expenses, and a high P/E ratio pose risks. Technical indicators suggest moderate upward momentum with potential oversold conditions.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for Collegium's products, particularly in the pain management sector, which is likely to sustain the company's market position and drive future earnings.

Cash Flow Generation

Strong cash flow generation enhances Collegium's financial flexibility, allowing for strategic investments, debt reduction, and shareholder returns, supporting long-term financial health.

Product Portfolio Strength

The growth in Jornay PM underscores the strength of Collegium's product portfolio, enhancing its competitive advantage and market share in the pharmaceutical industry.

Negative Factors

High Leverage

High leverage can pose financial risks by increasing interest obligations and limiting the company's ability to invest in growth opportunities, potentially affecting long-term stability.

Declining Net Profit Margins

The decline in net profit margins suggests rising costs or pricing pressures, which could impact Collegium's profitability and ability to reinvest in its business over the long term.

Increased Operating Expenses

Rising operating expenses may strain Collegium's profitability and cash flow, potentially limiting its ability to fund growth initiatives and maintain competitive pricing.

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 prescription drugs, particularly Xtampza ER. The company employs a revenue model based on direct sales to healthcare providers and pharmacies, as well as through partnerships with other pharmaceutical companies for the distribution of its products. Additionally, Collegium may receive royalty payments from licensing agreements or collaborations, enhancing its revenue streams. The ongoing demand for pain management solutions, particularly those that are abuse-deterrent, positions the company to capitalize on market needs, thereby contributing to its overall earnings.

Collegium Pharmaceutical Financial Statement Overview

Summary

Collegium Pharmaceutical shows strong revenue growth and operational efficiency with robust EBITDA margins. However, increased leverage and declining net profitability pose risks. Cash generation remains strong, supporting operations despite challenges.

Income Statement

Collegium Pharmaceutical's income statement shows strong revenue growth, increasing from $566.8M in 2023 to $664.3M in TTM (Trailing-Twelve-Months), representing a growth rate of approximately 15.2%. The gross profit margin is healthy at 57.7% in TTM. However, the net profit margin has decreased from 12.2% in 2024 to 6.6% in TTM, indicating increased expenses or cost pressures. EBIT margin is stable at 21.4% in TTM, and EBITDA margin remains robust at 50.1%, demonstrating good operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.60, suggesting significant leverage, which could pose financial risks. However, stockholders' equity has improved slightly to $234.4M in TTM. The equity ratio is 14.4%, indicating moderate reliance on equity financing. Return on Equity (ROE) has decreased from 30.2% in 2024 to 18.7% in TTM, reflecting reduced profitability relative to equity.

Cash Flow

The cash flow statement indicates strong cash generation with a free cash flow of $196.6M in TTM. The free cash flow to net income ratio is 4.48, highlighting effective cash conversion. Operating cash flow to net income ratio is 4.52, suggesting efficient operations. However, there is a decrease in free cash flow from $203.3M in 2024, equating to a negative growth rate, which requires monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	707.01M	631.45M	566.77M	463.93M	276.87M	310.02M
Gross Profit	400.79M	377.34M	326.17M	209.49M	150.62M	179.84M
EBITDA	346.73M	341.70M	308.33M	168.76M	86.58M	118.07M
Net Income	36.27M	69.19M	48.16M	-25.00M	71.52M	26.75M
Balance Sheet
Total Assets	1.59B	1.66B	1.14B	1.17B	692.08M	643.84M
Cash, Cash Equivalents and Short-Term Investments	222.15M	162.76M	310.55M	173.69M	186.43M	174.12M
Total Debt	829.11M	859.30M	674.28M	872.79M	258.75M	266.58M
Total Liabilities	1.36B	1.43B	947.88M	979.29M	489.15M	457.81M
Stockholders Equity	232.21M	228.84M	195.43M	194.84M	202.93M	186.03M
Cash Flow
Free Cash Flow	201.81M	203.33M	274.29M	122.61M	101.61M	-279.83M
Operating Cash Flow	203.48M	204.98M	274.75M	124.23M	103.56M	93.94M
Investing Cash Flow	-273.32M	-287.76M	-70.81M	-573.69M	-1.94M	-373.77M
Financing Cash Flow	34.15M	-60.60M	-140.18M	436.72M	-89.30M	286.47M

Collegium Pharmaceutical Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COLL, the sentiment is Positive. The current price of 35.75 is below the 20-day moving average (MA) of 37.83, above the 50-day MA of 35.23, and above the 200-day MA of 31.06, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 44.94 is Neutral, neither overbought nor oversold. The STOCH value of 24.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for COLL.

Collegium Pharmaceutical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUPN	71 Outperform	2.58B	40.24	6.06%	―	5.55%	1145.24%
AVDL	70 Outperform	1.57B	-490.91	-3.22%	―	132.35%	97.34%
AMPH	69 Neutral	1.29B	10.35	17.78%	―	1.37%	-18.10%
ANIP	66 Neutral	2.10B	-125.91	-2.53%	―	38.68%	-160.14%
COLL	65 Neutral	$1.13B	34.51	16.16%	―	22.61%	-63.00%
PCRX	61 Neutral	1.20B	-9.57	-16.82%	―	2.25%	-301.59%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%