NASDAQ:PCRX is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Dec 20, 2023

Our stock screening tool has identified PACIRA BIOSCIENCES INC (NASDAQ:PCRX) as an undervalued gem with strong fundamentals. NASDAQ:PCRX boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

A Closer Look at Valuation for NASDAQ:PCRX

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:PCRX, the assigned 8 reflects its valuation:

With a Price/Earnings ratio of 11.12, the valuation of PCRX can be described as very reasonable.
88.67% of the companies in the same industry are more expensive than PCRX, based on the Price/Earnings ratio.
PCRX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.74.
The Price/Forward Earnings ratio is 8.96, which indicates a very decent valuation of PCRX.
93.10% of the companies in the same industry are more expensive than PCRX, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.31, PCRX is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, PCRX is valued cheaply inside the industry as 87.19% of the companies are valued more expensively.
PCRX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PCRX is cheaper than 91.63% of the companies in the same industry.
PCRX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of PCRX may justify a higher PE ratio.
PCRX's earnings are expected to grow with 18.44% in the coming years. This may justify a more expensive valuation.

Looking at the Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:PCRX has achieved a 7:

With an excellent Return On Assets value of 0.46%, PCRX belongs to the best of the industry, outperforming 81.28% of the companies in the same industry.
The Return On Equity of PCRX (0.85%) is better than 81.77% of its industry peers.
The Return On Invested Capital of PCRX (3.49%) is better than 81.77% of its industry peers.
The Profit Margin of PCRX (1.07%) is better than 81.77% of its industry peers.
With an excellent Operating Margin value of 10.15%, PCRX belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
In the last couple of years the Operating Margin of PCRX has grown nicely.
PCRX has a Gross Margin of 70.12%. This is in the better half of the industry: PCRX outperforms 77.83% of its industry peers.

Evaluating Health: NASDAQ:PCRX

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:PCRX scores a 6 out of 10:

The Altman-Z score of PCRX (1.98) is better than 68.97% of its industry peers.
PCRX's Debt to FCF ratio of 4.03 is amongst the best of the industry. PCRX outperforms 88.18% of its industry peers.
PCRX has a Current Ratio of 4.77. This indicates that PCRX is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 4.77, PCRX is doing good in the industry, outperforming 61.58% of the companies in the same industry.
A Quick Ratio of 3.74 indicates that PCRX has no problem at all paying its short term obligations.

Growth Analysis for NASDAQ:PCRX

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:PCRX has received a 5 out of 10:

The Earnings Per Share has been growing by 68.62% on average over the past years. This is a very strong growth
PCRX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.40% yearly.
The Earnings Per Share is expected to grow by 16.13% on average over the next years. This is quite good.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of PCRX contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.