Collegium Pharmaceutical Inc. Common Stock (COLL)

FairStock Score: 71/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Collegium as a specialty drug maker with a narrow product set and a TURNAROUND label. Revenue grew from $566.8M in fiscal year 2023, the year ended 2023-12-31, to $631.4M in fiscal year 2024, the year ended 2024-12-31, and to $780.6M in fiscal year 2025, the year ended 2025-12-31. That is decent top-line progress. But net income slipped from $69.2M in fiscal year 2024 to $62.9M in fiscal year 2025, and in fiscal Q2 2026, the quarter ended 2026-06-30, Collegium lost $15.1M on $199.9M of revenue. That loss is the crux. The cash flow is striking: trailing free cash flow is $328.3M, which against the $700.9M market cap at the 2026-10-13 close gives a FairStock-calculated FCF yield of 46.8%. EV/EBITDA is 4.30. Those numbers could signal deep value or deep doubt. The balance sheet worries me more. Debt-to-equity is 3.90, Altman Z-Score is 0.27, Piotroski is 2/9, and ROCE is 5.76%, so returns on capital are modest and financial risk is high. A Graham Number of $16.56 versus the $21.53 price gives a negative margin of safety of -30.01%. ROE of 17.61% looks better, but leverage may be flattering it. On business quality, specialty pharma can have some switching costs, but the low ROCE and weak Piotroski score do not suggest a wide moat. I would need evidence that the recent loss is temporary and that cash flow can service debt before treating this as a durable bargain.

In plain English: Collegium Pharmaceutical makes medicines for pain management and ADHD. The business brings in a lot of cash, but it lost money in its latest reported quarter and carries a heavy debt load, so it looks financially mixed. At $21.53, the price is above one simple value estimate and near its 52-week low, which suggests investors are treating it as a risky, cheap-looking company rather than a clearly cheap one.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q4 2025 10-K (period ended 2025-12-31) · fiscal Q3 2025 10-K (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer