Despite its impressive fundamentals, NASDAQ:PCRX remains undervalued.

Last update: Mar 28, 2024

Uncover the hidden value in PACIRA BIOSCIENCES INC (NASDAQ:PCRX) as our stock screening tool recommends it as an undervalued choice. NASDAQ:PCRX maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Valuation Examination for NASDAQ:PCRX

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:PCRX has earned a 8 for valuation:

A Price/Earnings ratio of 9.95 indicates a reasonable valuation of PCRX.
Compared to the rest of the industry, the Price/Earnings ratio of PCRX indicates a rather cheap valuation: PCRX is cheaper than 91.54% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PCRX to the average of the S&P500 Index (26.42), we can say PCRX is valued rather cheaply.
The Price/Forward Earnings ratio is 9.55, which indicates a very decent valuation of PCRX.
Based on the Price/Forward Earnings ratio, PCRX is valued cheaper than 92.54% of the companies in the same industry.
PCRX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.74.
PCRX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PCRX is cheaper than 89.05% of the companies in the same industry.
91.04% of the companies in the same industry are more expensive than PCRX, based on the Price/Free Cash Flow ratio.
PCRX has a very decent profitability rating, which may justify a higher PE ratio.
PCRX's earnings are expected to grow with 15.75% in the coming years. This may justify a more expensive valuation.

What does the Profitability looks like for NASDAQ:PCRX

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:

The Return On Assets of PCRX (2.67%) is better than 86.07% of its industry peers.
PCRX has a Return On Equity of 4.83%. This is amongst the best in the industry. PCRX outperforms 87.06% of its industry peers.
The Return On Invested Capital of PCRX (4.02%) is better than 82.59% of its industry peers.
Looking at the Profit Margin, with a value of 6.23%, PCRX belongs to the top of the industry, outperforming 85.57% of the companies in the same industry.
Looking at the Operating Margin, with a value of 12.94%, PCRX belongs to the top of the industry, outperforming 86.07% of the companies in the same industry.
In the last couple of years the Operating Margin of PCRX has grown nicely.
With a decent Gross Margin value of 72.65%, PCRX is doing good in the industry, outperforming 79.60% of the companies in the same industry.

Assessing Health for NASDAQ:PCRX

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:PCRX has received a 6 out of 10:

PCRX has a Altman-Z score of 1.98. This is in the better half of the industry: PCRX outperforms 68.16% of its industry peers.
The Debt to FCF ratio of PCRX is 3.75, which is a good value as it means it would take PCRX, 3.75 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.75, PCRX belongs to the top of the industry, outperforming 89.05% of the companies in the same industry.
A Current Ratio of 5.24 indicates that PCRX has no problem at all paying its short term obligations.
PCRX's Current ratio of 5.24 is fine compared to the rest of the industry. PCRX outperforms 66.17% of its industry peers.
PCRX has a Quick Ratio of 4.17. This indicates that PCRX is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of PCRX (4.17) is better than 60.20% of its industry peers.

Growth Examination 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 6 out of 10:

The Earnings Per Share has grown by an nice 12.74% over the past year.
The Earnings Per Share has been growing by 22.93% on average over the past years. This is a very strong growth
The Revenue has been growing by 14.88% on average over the past years. This is quite good.
The Earnings Per Share is expected to grow by 12.07% on average over the next years. This is quite good.
Based on estimates for the next years, PCRX will show a quite strong growth in Revenue. The Revenue will grow by 10.37% on average per year.

More Decent Value stocks can be found 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.