One-glance verdict
Undervalued
$336.75 our estimate vs market $24.71
Wall Street consensus: $44.88 (-86.7% lower than our fair-value estimate)
93% below our estimate, below the bear case
Fundamentals snapshot
Collegium Pharmaceutical, Inc.
COLL · NMS · Healthcare · Drug Manufacturers - Specialty & Generic
Current price
$24.71
52-week range
$21.43 - $50.79
Market cap
$767.87M
Balance sheet
Distressed
2.17x Stretched
Net debt $1.06B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 4.4% last year.
- Reward Returns 13.4% on equity, ahead of 33% of its peers.
- Risk Stock trades 3.0% above its 5-year average P/E.
- Risk Insider ownership is only 1.2% (peer median: 1.3%).
What this company does
Collegium Pharmaceutical, Inc.
Collegium Pharmaceutical, Inc. is a company that makes and sells prescription medicines, mainly for people with pain and attention issues. Their main money comes from selling these specific drugs. This is important because it shows they have a focused business that could be easier to understand and predict.
How the company got here
Collegium Pharmaceutical was founded in 2002 with an initial focus on developing pain medications that were designed to be less prone to abuse. The company went public in 2015 and has since grown by acquiring other companies and their products. This strategy has transformed Collegium from a company with a single focus to a more diversified pharmaceutical business. Key acquisitions include the Nucynta franchise in 2020 and BioDelivery Sciences International in 2022, which broadened its pain management offerings, and more recently, the acquisition of Ironshore Therapeutics and its ADHD medication, Jornay PM, in 2024. This has shifted the company's focus to include not only pain management but also treatments for neuropsychiatric conditions like ADHD.
What it actually does
Collegium Pharmaceutical develops and sells prescription medications. Their products are primarily aimed at treating serious medical conditions, with a strong emphasis on pain management and, more recently, attention-deficit/hyperactivity disorder (ADHD). The company focuses on creating "differentiated" medicines, meaning they aim to offer unique benefits or formulations compared to existing treatments. They achieve this through a combination of internal development and strategic acquisitions of established products.
Pain Management Portfolio
This is a significant part of Collegium's business, focusing on medications for moderate to severe pain. Key products include Xtampza ER, which is an extended-release version of oxycodone designed to be abuse-deterrent. Belbuca is another pain medication, delivered as a film that dissolves in the mouth. The Nucynta franchise, which includes both extended-release (ER) and immediate-release (IR) formulations of tapentadol, is also a core part of this portfolio, used for both chronic and acute pain. These products are designed to provide effective pain relief while incorporating features to reduce the potential for misuse.
ADHD Treatment
This business line has become increasingly important for Collegium, particularly with the acquisition of Jornay PM. Jornay PM is a prescription medication for ADHD that is designed with a unique evening dosing to help manage symptoms throughout the day. The company has also expanded its ADHD offerings through the acquisition of other products like AZSTARYS. This segment represents a strategic growth area for Collegium, diversifying its revenue streams beyond pain management.
What management is betting on now
Collegium's management is focused on growing its ADHD business, leveraging recent acquisitions like Jornay PM and AZSTARYS. They also aim to maintain the strength and value of their established pain management portfolio. A key part of their strategy involves carefully deploying capital, which includes looking for new acquisition opportunities that offer significant growth potential and intellectual property protection. The company is also focused on disciplined financial management, aiming to reduce debt and potentially repurchase shares to create long-term value for shareholders.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$84.07M
FY2025 Q1
$54.60M
FY2025 Q2
$72.37M
FY2025 Q3
$78.25M
FY2025 Q4
$122.36M
FY2026 Q1
$56.84M
FY2026 Q2
$70.83M
FY2026 Q3
$86.26M
Revenue
$216.34M
Net income
$21.76M
Diluted EPS
0.60
Operating cash flow
$86.54M
Free cash flow
$86.26M
Fetching…
Sources
Revenue
$199.88M
Net income
$-15.05M
Diluted EPS
-0.46
Operating cash flow
$71.32M
Free cash flow
$70.83M
Fetching…
Sources
Revenue
$193.52M
Net income
$14.50M
Diluted EPS
0.40
Operating cash flow
$57.11M
Free cash flow
$56.84M
Fetching…
Sources
Revenue
$205.45M
Net income
$16.96M
Diluted EPS
0.46
Operating cash flow
$123.05M
Free cash flow
$122.36M
Fetching…
Sources
Revenue
$209.36M
Net income
$31.51M
Diluted EPS
0.84
Operating cash flow
$78.44M
Free cash flow
$78.25M
Fetching…
Sources
Revenue
$188.00M
Net income
$11.98M
Diluted EPS
0.34
Operating cash flow
$72.44M
Free cash flow
$72.37M
Fetching…
Sources
Revenue
$177.76M
Net income
$2.42M
Diluted EPS
0.07
Operating cash flow
$55.40M
Free cash flow
$54.60M
Fetching…
Sources
Revenue
$181.95M
Net income
$12.54M
Diluted EPS
0.36
Operating cash flow
$84.64M
Free cash flow
$84.07M
Fetching…
Sources
Is it cheap or expensive?
Fair value $336.75 vs current price $24.71
Wall Street consensus is the average analyst price target: $44.88 (-86.7% lower than our fair-value estimate).
Our most-likely fair value is $336.75 a share — about 1,262.8% above today's price of $24.71, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $1.1B. Interest coverage 2.2x.
Net debt
$1.06B
Interest coverage
2.17x
Collegium Pharmaceutical, Inc.'s profit covers its interest bill about 2.2 times over. which is stronger than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
COLL
BASELINE
Collegium Pharmaceutical, Inc.
Total debt $1.21B Interest coverage 2.17x This is the baseline the peer rows are being compared against.
Total debt $154.91M Interest coverage 14.23x +556% vs COLL Carries about 6.6x more debt cushion than COLL.
Total debt $340.28M Interest coverage 1.31x -39% vs COLL Carries about 1.7x less debt cushion than COLL.
What you should know
The case for and against COLL
3 Rewards
2 Risks
Rewards
-
Revenue grew 4.4% last year.
-
Returns 13.4% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 8/10 years.
Risks
-
Stock trades 3.0% above its 5-year average P/E.
-
Insider ownership is only 1.2% (peer median: 1.3%).
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)
22.67x
Forward P/E
3.45x
P/B
2.59x
P/S
0.94x
EV/EBITDA
4.36x
PEG ratio
0.72x
Profitability
How much profit each dollar creates
Gross margin
89.4%
Operating margin
24.6%
Net margin
4.7%
ROE
13.4%
ROA
6.3%
Health
Liquidity and balance-sheet strength
Debt / equity
4.07x
Current ratio
1.01x
Quick ratio
0.76x
Total debt
$1.21B
Total cash
$144.80M
Growth
How the business has been compounding
Revenue TTM
$815.19M
Revenue 5Y CAGR
29.6%
EPS TTM
1.09
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$338.02M
Free CF TTM
$327.58M
FCF margin
40.2%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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