NASDAQ:COLL appears to be flying under the radar despite its strong fundamentals.

Last update: Jun 24, 2024

Discover COLLEGIUM PHARMACEUTICAL INC (NASDAQ:COLL)—an undervalued stock our stock screener has picked out. NASDAQ:COLL demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Evaluating Valuation: NASDAQ:COLL

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:COLL scores a 10 out of 10:

With a Price/Earnings ratio of 10.09, the valuation of COLL can be described as very reasonable.
Based on the Price/Earnings ratio, COLL is valued cheaply inside the industry as 91.71% of the companies are valued more expensively.
COLL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.63.
COLL is valuated cheaply with a Price/Forward Earnings ratio of 4.39.
Based on the Price/Forward Earnings ratio, COLL is valued cheaply inside the industry as 97.93% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of COLL to the average of the S&P500 Index (20.22), we can say COLL is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, COLL is valued cheaper than 96.89% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, COLL is valued cheaper than 97.93% of the companies in the same industry.
COLL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
COLL has an outstanding profitability rating, which may justify a higher PE ratio.
COLL's earnings are expected to grow with 91.62% in the coming years. This may justify a more expensive valuation.

Profitability Insights: NASDAQ:COLL

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:COLL has earned a 8 out of 10:

Looking at the Return On Assets, with a value of 8.37%, COLL belongs to the top of the industry, outperforming 91.71% of the companies in the same industry.
COLL's Return On Equity of 41.97% is amongst the best of the industry. COLL outperforms 94.30% of its industry peers.
With an excellent Return On Invested Capital value of 18.26%, COLL belongs to the best of the industry, outperforming 94.82% of the companies in the same industry.
The 3 year average ROIC (8.70%) for COLL is below the current ROIC(18.26%), indicating increased profibility in the last year.
COLL has a better Profit Margin (16.45%) than 90.67% of its industry peers.
Looking at the Operating Margin, with a value of 33.83%, COLL belongs to the top of the industry, outperforming 96.37% of the companies in the same industry.
In the last couple of years the Operating Margin of COLL has grown nicely.
With a decent Gross Margin value of 60.01%, COLL is doing good in the industry, outperforming 66.32% of the companies in the same industry.
In the last couple of years the Gross Margin of COLL has grown nicely.

How do we evaluate the Health for NASDAQ:COLL?

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:COLL was assigned a score of 5 for health:

The Altman-Z score of COLL (1.62) is better than 65.28% of its industry peers.
COLL has a debt to FCF ratio of 2.02. This is a good value and a sign of high solvency as COLL would need 2.02 years to pay back of all of its debts.
COLL's Debt to FCF ratio of 2.02 is amongst the best of the industry. COLL outperforms 92.75% of its industry peers.
Although COLL does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.

Assessing Growth Metrics for NASDAQ:COLL

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:COLL scores a 5 out of 10:

The Earnings Per Share has grown by an impressive 905.13% over the past year.
Measured over the past years, COLL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.79% on average per year.
Measured over the past years, COLL shows a quite strong growth in Revenue. The Revenue has been growing by 15.11% on average per year.
COLL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 46.17% yearly.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Our latest full fundamental report of COLL contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.