NASDAQ:COLL is an undervalued gem with solid fundamentals.

Last update: Jul 16, 2024

Consider COLLEGIUM PHARMACEUTICAL INC (NASDAQ:COLL) as a top value stock, identified by our stock screening tool. NASDAQ:COLL shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

What does the Valuation looks like for NASDAQ:COLL

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:COLL boasts a 10 out of 10:

COLL is valuated reasonably with a Price/Earnings ratio of 10.12.
Based on the Price/Earnings ratio, COLL is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
COLL is valuated cheaply when we compare the Price/Earnings ratio to 29.19, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 4.41 indicates a rather cheap valuation of COLL.
97.40% of the companies in the same industry are more expensive than COLL, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.63. COLL is valued rather cheaply when compared to this.
COLL's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. COLL is cheaper than 97.40% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, COLL is valued cheaply inside the industry as 98.44% of the companies are valued more expensively.
The 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 Examination for 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:

COLL has a Return On Assets of 8.37%. This is amongst the best in the industry. COLL outperforms 91.67% of its industry peers.
COLL has a better Return On Equity (41.97%) than 94.27% of its industry peers.
With an excellent Return On Invested Capital value of 18.26%, COLL belongs to the best of the industry, outperforming 94.79% of the companies in the same industry.
The last Return On Invested Capital (18.26%) for COLL is above the 3 year average (8.70%), which is a sign of increasing profitability.
Looking at the Profit Margin, with a value of 16.45%, COLL belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
COLL has a better Operating Margin (33.83%) than 96.35% of its industry peers.
COLL's Operating Margin has improved in the last couple of years.
COLL's Gross Margin of 60.01% is fine compared to the rest of the industry. COLL outperforms 66.15% of its industry peers.
In the last couple of years the Gross Margin of COLL has grown nicely.

Health Assessment of NASDAQ:COLL

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:COLL scores a 5 out of 10:

With a decent Altman-Z score value of 1.62, COLL is doing good in the industry, outperforming 64.06% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 2.02, COLL belongs to the top of the industry, outperforming 93.23% of the companies in the same industry.
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.

How We Gauge Growth for NASDAQ:COLL

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:COLL, the assigned 5 reflects its growth potential:

COLL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 905.13%, which is quite impressive.
COLL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.79% yearly.
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.
The Earnings Per Share is expected to grow by 46.17% on average over the next years. This is a very strong growth
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Check the latest full fundamental report of COLL for a complete fundamental analysis.

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.