What Collegium Pharmaceutical’s Valuation Trend Indicates



Bottom line

Collegium Pharmaceutical’s (COLL) interest income increased from $137,000 in the second quarter of 2017 to $391,000 in the second quarter of 2018. The company incurred an interest expense of $6.16 million in the second quarter. It had not incurred any interest expense in the comparable period in 2017.

Collegium Pharmaceutical’s net loss decreased from $21.12 million in the second quarter of 2017 to $13.06 million in the second quarter of 2018, which translated into a net loss per share of $0.40 in the second quarter as compared with a net loss per share of $0.72 in the second quarter of 2017.

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Analysts’ recommendations

In August 2018, of the total eight analysts covering Collegium Pharmaceutical, three analysts have given the stock a “strong buy” rating, and five analysts have given Collegium Pharmaceutical a “buy” rating. The mean rating for Collegium Pharmaceutical stock is 1.63 with a target price of $31.67.

Valuation metrics

After a northward trajectory in the first half of 2018, Collegium stock has corrected significantly. From $18.15 on January 5, 2018, it rose to $29.21 on March 8. Subsequently, the stock has steadily corrected to its current $17 levels.

The enterprise value of Collegium Pharmaceutical is $433.22 million, and its enterprise-value-to-revenue ratio is 2.71x. Its price-to-sales ratio is 3.56x, and its price-to-book ratio is 6.86x.

Its current ratio, a metric of how effectively a company can meet its short-term obligations, stands at 0.80x, and the company’s long-term debt-to-equity ratio is 0.14x.

We’ll take a look at Pacira Pharmaceuticals’ top line and product performance in the next part of this series.


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