Yahoo Finance Collegium Pharmaceutical's (NASDAQ:COLL) investors will be pleased with their decent 62% return over the last year
These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But if you pick the right individual stocks, you could make more than that. For example, the Collegium Pharmaceutical, Inc. (NASDAQ:COLL) share price is up 62% in the last 1 year, clearly besting the market decline of around 9.2% (not including dividends). That's a solid performance by our standards! And shareholders have also done well over the long term, with an increase of 41% in the last three years.
With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.
Check out our latest analysis for Collegium Pharmaceutical
Collegium Pharmaceutical isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last year Collegium Pharmaceutical saw its revenue grow by 11%. That's not a very high growth rate considering it doesn't make profits. In keeping with the revenue growth, the share price gained 62% in that time. That's not a standout result, but it is solid - much like the level of revenue growth. Given the market doesn't seem too excited about the stock, a closer look at the financial data could pay off, if you can find indications of a stronger growth trend in the future.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
This free interactive report on Collegium Pharmaceutical's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
It's nice to see that Collegium Pharmaceutical shareholders have received a total shareholder return of 62% over the last year. That's better than the annualised return of 5% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.
Of course Collegium Pharmaceutical may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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