NASDAQ:PCRX, an undervalued stock with good fundamentals.

Last update: Jun 5, 2024

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.

Looking at the Valuation

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:PCRX boasts a 8 out of 10:

With a Price/Earnings ratio of 10.14, the valuation of PCRX can be described as very reasonable.
Based on the Price/Earnings ratio, PCRX is valued cheaper than 91.71% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.88, PCRX is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.35, the valuation of PCRX can be described as very reasonable.
91.71% of the companies in the same industry are more expensive than PCRX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 19.96. PCRX is valued rather cheaply when compared to this.
88.60% of the companies in the same industry are more expensive than PCRX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, PCRX is valued cheaply inside the industry as 92.23% of the companies are valued more expensively.
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 14.62% in the coming years.

Profitability Examination for NASDAQ:PCRX

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:PCRX has earned a 7 out of 10:

With an excellent Return On Assets value of 4.46%, PCRX belongs to the best of the industry, outperforming 87.05% of the companies in the same industry.
PCRX's Return On Equity of 7.91% is amongst the best of the industry. PCRX outperforms 87.56% of its industry peers.
PCRX's Return On Invested Capital of 4.27% is amongst the best of the industry. PCRX outperforms 82.90% of its industry peers.
PCRX's Profit Margin of 10.35% is amongst the best of the industry. PCRX outperforms 87.56% of its industry peers.
The Operating Margin of PCRX (13.71%) is better than 86.01% of its industry peers.
In the last couple of years the Operating Margin of PCRX has grown nicely.
PCRX has a Gross Margin of 73.16%. This is in the better half of the industry: PCRX outperforms 78.76% of its industry peers.

Unpacking NASDAQ:PCRX's Health Rating

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 Altman-Z score of 2.11. This is in the better half of the industry: PCRX outperforms 68.39% of its industry peers.
The Debt to FCF ratio of PCRX is 3.00, which is a good value as it means it would take PCRX, 3.00 years of fcf income to pay off all of its debts.
PCRX's Debt to FCF ratio of 3.00 is amongst the best of the industry. PCRX outperforms 90.16% of its industry peers.
PCRX has a Current Ratio of 5.81. This indicates that PCRX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 5.81, PCRX is in the better half of the industry, outperforming 70.47% of the companies in the same industry.
A Quick Ratio of 4.78 indicates that PCRX has no problem at all paying its short term obligations.
PCRX's Quick ratio of 4.78 is fine compared to the rest of the industry. PCRX outperforms 61.14% of its industry peers.

Understanding NASDAQ:PCRX's Growth Score

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 6 out of 10:

The Earnings Per Share has grown by an impressive 21.37% 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 13.68% 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 8.36% on average per year.

More Decent Value stocks can be found in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of PCRX

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.