When you look at NASDAQ:PCRX, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Consider PACIRA BIOSCIENCES INC (NASDAQ:PCRX) as a top value stock, identified by our stock screening tool. NASDAQ:PCRX shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive 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 10.50, the valuation of PCRX can be described as very reasonable.
• PCRX's Price/Earnings ratio is rather cheap when compared to the industry. PCRX is cheaper than 90.00% of the companies in the same industry.
• PCRX is valuated cheaply when we compare the Price/Earnings ratio to 26.09, which is the current average of the S&P500 Index.
• The Price/Forward Earnings ratio is 8.45, which indicates a very decent valuation of PCRX.
• Based on the Price/Forward Earnings ratio, PCRX is valued cheaply inside the industry as 93.00% of the companies are valued more expensively.
• Compared to an average S&P500 Price/Forward Earnings ratio of 21.73, PCRX is valued rather cheaply.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PCRX indicates a rather cheap valuation: PCRX is cheaper than 87.50% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, PCRX is valued cheaper than 91.00% of the companies in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• PCRX has a very decent profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as PCRX's earnings are expected to grow with 17.89% in the coming years.

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 82.00% of its industry peers.
• PCRX's Return On Equity of 0.85% is amongst the best of the industry. PCRX outperforms 83.00% 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 82.50% of the companies in the same industry.
• PCRX's Profit Margin of 1.07% is amongst the best of the industry. PCRX outperforms 82.00% of its industry peers.
• With an excellent Operating Margin value of 10.15%, PCRX belongs to the best of the industry, outperforming 82.50% of the companies in the same industry.
• PCRX's Operating Margin has improved in the last couple of years.
• Looking at the Gross Margin, with a value of 70.12%, PCRX is in the better half of the industry, outperforming 78.00% of the companies in the same industry.

Looking at the Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:PCRX, the assigned 6 for health provides valuable insights:

• PCRX has a better Altman-Z score (1.91) than 68.00% of its industry peers.
• With an excellent Debt to FCF ratio value of 4.03, PCRX belongs to the best of the industry, outperforming 88.00% of the companies in the same industry.
• 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.
• PCRX's Current ratio of 4.77 is fine compared to the rest of the industry. PCRX outperforms 61.00% 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.

Assessing Growth Metrics for 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:

• Measured over the past years, PCRX shows a very strong growth in Earnings Per Share. The EPS has been growing by 68.62% on average per year.
• The Revenue has been growing by 18.40% on average over the past years. This is quite good.
• PCRX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.13% yearly.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

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.