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

Last update: Feb 9, 2024

PACIRA BIOSCIENCES INC (NASDAQ:PCRX) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NASDAQ:PCRX showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

Evaluating Valuation: NASDAQ:PCRX

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:PCRX was assigned a score of 9 for valuation:

With a Price/Earnings ratio of 9.79, the valuation of PCRX can be described as very reasonable.
Based on the Price/Earnings ratio, PCRX is valued cheaper than 90.59% of the companies in the same industry.
PCRX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.01.
A Price/Forward Earnings ratio of 7.87 indicates a rather cheap valuation of PCRX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PCRX indicates a rather cheap valuation: PCRX is cheaper than 93.56% of the companies listed in the same industry.
PCRX is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.53, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, PCRX is valued cheaply inside the industry as 88.12% of the companies are valued more expensively.
92.57% of the companies in the same industry are more expensive than PCRX, based on the Price/Free Cash Flow ratio.
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 17.89% in the coming years. This may justify a more expensive valuation.

A Closer Look at Profitability for NASDAQ:PCRX

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:PCRX scores a 7 out of 10:

PCRX's Return On Assets of 0.46% is amongst the best of the industry. PCRX outperforms 81.68% of its industry peers.
PCRX's Return On Equity of 0.85% is amongst the best of the industry. PCRX outperforms 82.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.49%, PCRX belongs to the top of the industry, outperforming 82.18% of the companies in the same industry.
PCRX has a Profit Margin of 1.07%. This is amongst the best in the industry. PCRX outperforms 82.18% of its industry peers.
PCRX has a Operating Margin of 10.15%. This is amongst the best in the industry. PCRX outperforms 83.17% of its industry peers.
PCRX's Operating Margin has improved in the last couple of years.
PCRX has a better Gross Margin (70.12%) than 77.72% of its industry peers.

Deciphering NASDAQ:PCRX's Health Rating

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:PCRX was assigned a score of 6 for health:

Looking at the Altman-Z score, with a value of 1.83, PCRX is in the better half of the industry, outperforming 67.82% of the companies in the same industry.
PCRX has a Debt to FCF ratio of 4.03. This is amongst the best in the industry. PCRX outperforms 88.61% 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.
The Current ratio of PCRX (4.77) is better than 61.88% of its industry peers.
PCRX has a Quick Ratio of 3.74. This indicates that PCRX is financially healthy and has no problem in meeting its short term obligations.

Growth Assessment of NASDAQ:PCRX

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:PCRX has achieved 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
The Revenue has been growing by 18.40% on average over the past years. This is quite good.
Based on estimates for the next years, PCRX will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.13% on average per year.

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

Check the latest full fundamental report of PCRX for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.