In a market where value is scarce, NASDAQ:COLL offers a refreshing opportunity with its solid fundamentals.

Last update: Aug 6, 2024

Uncover the potential of COLLEGIUM PHARMACEUTICAL INC (NASDAQ:COLL) as our stock screener's choice for an undervalued stock. NASDAQ:COLL maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Evaluating Valuation: NASDAQ:COLL

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:COLL has achieved a 10 out of 10:

The Price/Earnings ratio is 10.99, which indicates a very decent valuation of COLL.
90.67% of the companies in the same industry are more expensive than COLL, based on the Price/Earnings ratio.
COLL is valuated cheaply when we compare the Price/Earnings ratio to 28.44, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 4.78 indicates a rather cheap valuation of COLL.
Based on the Price/Forward Earnings ratio, COLL is valued cheaper than 96.89% of the companies in the same industry.
COLL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 19.90.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of COLL indicates a rather cheap valuation: COLL is cheaper than 96.89% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, COLL is valued cheaper than 97.41% 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.
The excellent profitability rating of COLL may justify a higher PE ratio.
A more expensive valuation may be justified as COLL's earnings are expected to grow with 91.62% in the coming years.

Looking at the Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:COLL, the assigned 8 is a significant indicator of profitability:

Looking at the Return On Assets, with a value of 8.37%, COLL belongs to the top of the industry, outperforming 91.19% of the companies in the same industry.
COLL has a better Return On Equity (41.97%) than 94.30% of its industry peers.
The Return On Invested Capital of COLL (18.26%) is better than 95.34% of its industry peers.
The 3 year average ROIC (8.70%) for COLL is below the current ROIC(18.26%), indicating increased profibility in the last year.
With an excellent Profit Margin value of 16.45%, COLL belongs to the best of the industry, outperforming 90.16% of the companies in the same industry.
With an excellent Operating Margin value of 33.83%, COLL belongs to the best of the industry, outperforming 96.37% of the companies in the same industry.
COLL's Operating Margin has improved in the last couple of years.
The Gross Margin of COLL (60.01%) is better than 66.32% of its industry peers.
COLL's Gross Margin has improved in the last couple of years.

Assessing Health Metrics for NASDAQ:COLL

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:COLL, the assigned 5 reflects its health status:

The Altman-Z score of COLL (1.72) is better than 64.77% 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 has a better Debt to FCF ratio (2.02) than 93.26% of its industry peers.
Even though the debt/equity ratio score it not favorable for COLL, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.

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:

The Earnings Per Share has grown by an impressive 905.13% over the past year.
The Earnings Per Share has been growing by 15.79% on average over the past years. This is quite good.
The Revenue has been growing by 15.11% on average over the past years. This is quite good.
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.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.