Latest news with #COLL
Yahoo
04-08-2025
- Business
- Yahoo
1 Cash-Producing Stock to Own for Decades and 2 We Ignore
While strong cash flow is a key indicator of stability, it doesn't always translate to superior returns. Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning. Cash flow is valuable, but it's not everything - StockStory helps you identify the companies that truly put it to work. That said, here is one cash-producing company that reinvests wisely to drive long-term success and two that may face some trouble. Two Stocks to Sell: DocuSign (DOCU) Trailing 12-Month Free Cash Flow Margin: 30.2% Founded by Seattle-based entrepreneur Tom Gonser, DocuSign (NASDAQ:DOCU) is the pioneer of e-signature and offers software as a service that allows people and organisations to sign legally binding documents electronically. Why Does DOCU Worry Us? Annual revenue growth of 10.8% over the last three years was below our standards for the software sector Offerings struggled to generate meaningful interest as its average billings growth of 6.4% over the last year did not impress Estimated sales growth of 5.9% for the next 12 months implies demand will slow from its three-year trend At $73.83 per share, DocuSign trades at 4.9x forward price-to-sales. To fully understand why you should be careful with DOCU, check out our full research report (it's free). Collegium Pharmaceutical (COLL) Trailing 12-Month Free Cash Flow Margin: 29.6% Pioneering abuse-deterrent technology in a field plagued by addiction concerns, Collegium Pharmaceutical (NASDAQ:COLL) develops and markets specialty medications for treating moderate to severe pain, including abuse-deterrent opioid formulations. Why Are We Hesitant About COLL? Subscale operations are evident in its revenue base of $664.3 million, meaning it has fewer distribution channels than its larger rivals Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 6.5 percentage points Diminishing returns on capital suggest its earlier profit pools are drying up Collegium Pharmaceutical's stock price of $30.07 implies a valuation ratio of 4.2x forward P/E. Dive into our free research report to see why there are better opportunities than COLL. One Stock to Buy: Alphabet (GOOGL) Trailing 12-Month Free Cash Flow Margin: 18% Started by Stanford students Larry Page and Sergey Brin in a Menlo Park garage, Alphabet (NASDAQ:GOOGL) is the parent company of the eponymous Google Search engine, Google Cloud Platform, and YouTube. Why Will GOOGL Outperform? Alphabet's dominant Google Search sits on the pantheon of the best businesses ever. This is reflected in its robust long-term revenue growth and elite operating margin. The company's profit margins have become even higher over time, speaking to its scale advantages and operating efficiency not only in its core Search business but also in Google Cloud Platform and YouTube. Revenue growth and increasing operating margins are the key ingredients for strong EPS growth. Google has these, and when also factoring in its share repurchases, you can see why EPS has exploded over the long term. Alphabet is trading at $188.40 per share, or 19.7x forward price-to-earnings. Is now a good time to buy? Find out in our full research report, it's free. Stocks We Like Even More Donald Trump's April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities. The smart money is already positioning for the next leg up. Don't miss out on the recovery - check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-06-2025
- Business
- Yahoo
COLL Q1 Earnings Call: ADHD Portfolio Drives Growth, Management Details Capital Deployment Priorities
Pharmaceutical company Collegium Pharmaceutical (NASDAQ:COLL) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 22.7% year on year to $177.8 million. The company expects the full year's revenue to be around $742.5 million, close to analysts' estimates. Its non-GAAP profit of $1.49 per share was 2.8% above analysts' consensus estimates. Is now the time to buy COLL? Find out in our full research report (it's free). Revenue: $177.8 million vs analyst estimates of $172.8 million (22.7% year-on-year growth, 2.9% beat) Adjusted EPS: $1.49 vs analyst estimates of $1.45 (2.8% beat) Adjusted EBITDA: $95.15 million vs analyst estimates of $96.5 million (53.5% margin, 1.4% miss) The company reconfirmed its revenue guidance for the full year of $742.5 million at the midpoint EBITDA guidance for the full year is $442.5 million at the midpoint, above analyst estimates of $438.5 million Operating Margin: 12.2%, down from 34.1% in the same quarter last year Market Capitalization: $978.4 million Collegium Pharmaceutical's first quarter performance was driven by continued momentum in its newly acquired ADHD treatment Jornay PM, alongside stable contributions from its established pain management portfolio. On the call, CEO Vikram Karnani highlighted that Jornay PM delivered 24% year-over-year prescription growth and now accounts for a growing share of the company's overall revenue. Karnani credited targeted sales force expansion and increased prescriber engagement as keys to this performance, stating, 'We recently completed the expansion of our Jornay sales force, adding approximately 55 new sales representatives… now fully trained, deployed and focused on accelerating further prescription growth.' The pain portfolio, including Belbuca, Xtampza ER, and Nucynta, provided steady revenue and cash flow, allowing for continued investment in growth initiatives. Looking ahead, management's guidance is anchored by expectations for continued growth from Jornay PM, with investments in sales and marketing expected to drive prescription gains through 2025 and beyond. Karnani emphasized, 'Our targeted investments throughout 2025, including our expanded sales force and marketing efforts, position Jornay for both near-term growth and significant momentum in 2026 and beyond.' CFO Colleen Tupper noted that operating expenses will remain elevated as the company supports these initiatives but anticipates a downward trend in spending during the second half of the year. The team also pointed to durable cash flows from the pain portfolio, a disciplined approach to business development, and opportunistic share repurchases as key levers supporting future performance and shareholder value. Management attributed the quarter's results to rapid prescription growth for Jornay PM, ongoing durability in pain products, and investments in commercial capabilities. Several leadership and board changes were also highlighted as positioning the company for future growth. Jornay PM prescription surge: The ADHD medicine Jornay PM saw 24% year-over-year prescription growth, with net revenue reaching $28.5 million. Management linked this performance to an expanded and fully trained sales force and increased prescriber engagement. Pain portfolio stability: The legacy pain management products—Belbuca, Xtampza ER, and Nucynta—delivered low-single-digit revenue growth. Despite a declining overall pain market, these products continued to provide a reliable financial foundation, supported by recent extensions of market exclusivity for certain drugs. Sales force investment: The ADHD-focused sales force was expanded by 55 representatives, now totaling 180, allowing Collegium to increase its healthcare provider targets from 17,000 to 21,000. Management expects the full impact of this increase to be realized in late 2025 and into 2026. Leadership and board transitions: The company announced several changes, including the retirement of founder Michael Heffernan as Chairman, nomination of Gino Santini as Chairman, and the addition of new executive leaders to bolster strategic and commercial capabilities. Capital allocation priorities: Management highlighted ongoing investments in Jornay, rapid debt repayment, and the initiation of a $25 million accelerated share repurchase program as core elements of its capital deployment strategy. Collegium's outlook relies on continued expansion of Jornay PM in ADHD, disciplined investment in commercial activities, and maintaining stable returns from its pain portfolio. Jornay growth initiatives: Management expects prescription growth from Jornay PM to accelerate as the expanded sales force reaches more providers and new marketing campaigns target patients and caregivers, particularly around the back-to-school season. The company believes these efforts will lay the groundwork for sustained revenue momentum into 2026. Pain portfolio durability: Despite broader market declines, Collegium anticipates ongoing stable cash flows from its pain products due to product differentiation, market exclusivity, and a strong prescriber base. Management views these products as supporting continued investment and potential business development. Capital deployment flexibility: Management is committed to allocating capital between organic growth, opportunistic acquisitions, and share repurchases. The leadership team indicated willingness to increase leverage for the right acquisition opportunity, supported by strong operating cash flow and a declining net debt ratio. Looking ahead, the StockStory team will be tracking (1) the effectiveness of the expanded Jornay PM sales force and marketing campaigns, especially during the seasonally important back-to-school period; (2) resilience of the pain portfolio as market exclusivities extend and generic pressures mount; and (3) progress on capital deployment, including potential acquisitions and execution of the accelerated share repurchase program. The trajectory of operating expenses as investments scale will also be a key area of focus. Collegium Pharmaceutical currently trades at a forward P/E ratio of 4.2×. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
