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

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.

Valuation Examination for 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 8 for valuation:

• Based on the Price/Earnings ratio of 10.24, the valuation of PCRX can be described as reasonable.
• PCRX's Price/Earnings ratio is rather cheap when compared to the industry. PCRX is cheaper than 92.82% of the companies in the same industry.
• PCRX is valuated cheaply when we compare the Price/Earnings ratio to 28.56, which is the current average of the S&P500 Index.
• With a Price/Forward Earnings ratio of 8.50, the valuation of PCRX can be described as very reasonable.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of PCRX indicates a rather cheap valuation: PCRX is cheaper than 93.33% of the companies listed 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 20.34.
• Based on the Enterprise Value to EBITDA ratio, PCRX is valued cheaply inside the industry as 89.23% of the companies are valued more expensively.
• 93.33% of the companies in the same industry are more expensive than PCRX, based on the Price/Free Cash Flow ratio.
• The decent profitability rating of PCRX may justify a higher PE ratio.
• A more expensive valuation may be justified as PCRX's earnings are expected to grow with 14.40% in the coming years.

What does the Profitability looks like for NASDAQ:PCRX

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:PCRX, the assigned 7 is a significant indicator of profitability:

• The Return On Assets of PCRX (4.46%) is better than 89.74% of its industry peers.
• PCRX has a better Return On Equity (7.91%) than 88.72% of its industry peers.
• The Return On Invested Capital of PCRX (4.27%) is better than 83.08% of its industry peers.
• PCRX has a Profit Margin of 10.35%. This is amongst the best in the industry. PCRX outperforms 88.72% of its industry peers.
• Looking at the Operating Margin, with a value of 13.71%, PCRX belongs to the top of the industry, outperforming 86.67% 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 73.16%, PCRX is in the better half of the industry, outperforming 78.46% of the companies in the same industry.

How We Gauge Health for NASDAQ:PCRX

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:

• The Altman-Z score of PCRX (2.11) is better than 71.28% of its industry peers.
• PCRX has a debt to FCF ratio of 3.00. This is a good value and a sign of high solvency as PCRX would need 3.00 years to pay back of all of its debts.
• PCRX has a Debt to FCF ratio of 3.00. This is amongst the best in the industry. PCRX outperforms 90.77% of its industry peers.
• A Current Ratio of 5.81 indicates that PCRX has no problem at all paying its short term obligations.
• PCRX's Current ratio of 5.81 is fine compared to the rest of the industry. PCRX outperforms 73.33% of its industry peers.
• PCRX has a Quick Ratio of 4.78. This indicates that PCRX is financially healthy and has no problem in meeting its short term obligations.
• PCRX has a Quick ratio of 4.78. This is in the better half of the industry: PCRX outperforms 64.62% of its industry peers.

Analyzing Growth Metrics

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:PCRX has earned a 6 for growth:

• The Earnings Per Share has grown by an impressive 21.37% over the past year.
• Measured over the past years, PCRX shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.93% on average per year.
• The Revenue has been growing by 14.88% 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 13.68% yearly.
• The Revenue is expected to grow by 8.36% 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

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.