COLLCollegium Pharmaceutical, Inc.
Is the business good?
The checks split: earnings fully cash-backed (3.4×) and margins widening, but returns that lean on debt.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 20% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is COLL?
Collegium Pharmaceutical, Inc. earns 68% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 59 points above what the capital costs: growth creates value
- Operating margin
- 19%
Operating margin · Drug Manufacturers - Specialty & Generic median 11% · 12 months to Q2 2026
- Cash conversion
- 3.40×
Cash conversion · 2.29× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −17%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 18% |
| FY2021 | 6.4% |
| FY2022 | 7.2% |
| FY2023 | 29% |
| FY2024 | 27% |
| FY2025 | 23% |
Details›
- Gross margin12 months to Q2 2026
- 60%
- Operating margin12 months to Q2 2026
- 19%
- Net margin12 months to Q2 2026
- 5.9%
- Free cash flow margin
- 41%
- Revenue, trailing twelve months
- $808M
- Free cash flow, trailing twelve months
- $328M
- Net income, trailing twelve months
- $48M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 68%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Drug Manufacturers, Specialty & Generic
Ranks #7 of 41 by RyuScore