NASDAQ:PCRX: good value for what you're paying.

Last update: Jun 26, 2024

Our stock screener has spotted PACIRA BIOSCIENCES INC (NASDAQ:PCRX) as an undervalued stock with solid fundamentals. NASDAQ:PCRX shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Exploring NASDAQ:PCRX's Valuation

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:PCRX has received a 8 out of 10:

A Price/Earnings ratio of 9.43 indicates a reasonable valuation of PCRX.
93.26% of the companies in the same industry are more expensive than PCRX, based on the Price/Earnings ratio.
PCRX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
PCRX is valuated cheaply with a Price/Forward Earnings ratio of 7.76.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PCRX indicates a rather cheap valuation: PCRX is cheaper than 92.23% of the companies listed in the same industry.
PCRX is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.14, which is the current average of the S&P500 Index.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PCRX indicates a rather cheap valuation: PCRX is cheaper than 90.67% of the companies listed in the same industry.
94.30% 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.
PCRX's earnings are expected to grow with 14.62% in the coming years. This may justify a more expensive valuation.

Profitability Analysis 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:

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

Assessing Health Metrics 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's Altman-Z score of 2.03 is fine compared to the rest of the industry. PCRX outperforms 69.43% 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 90.16% of its industry peers.
A Current Ratio of 5.81 indicates that PCRX has no problem at all paying 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 69.43% of the companies in the same industry.
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.
With a decent Quick ratio value of 4.78, PCRX is doing good in the industry, outperforming 61.14% of the companies in the same industry.

Growth Analysis for NASDAQ:PCRX

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.
The Earnings Per Share has been growing by 22.93% on average over the past years. This is a very strong growth
PCRX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.88% yearly.
PCRX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.29% yearly.
PCRX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.72% yearly.

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

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

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.