In a market where value is scarce, NASDAQ:PCRX offers a refreshing opportunity with its solid fundamentals.

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.

Unpacking NASDAQ:PCRX's Valuation Rating

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 7.10 indicates a rather cheap valuation of PCRX.
• Based on the Price/Earnings ratio, PCRX is valued cheaper than 94.79% of the companies in the same industry.
• PCRX is valuated cheaply when we compare the Price/Earnings ratio to 29.53, which is the current average of the S&P500 Index.
• Based on the Price/Forward Earnings ratio of 5.84, the valuation of PCRX can be described as very cheap.
• 94.79% of the companies in the same industry are more expensive than PCRX, based on the Price/Forward Earnings ratio.
• PCRX is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.94, 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 93.75% of the companies listed in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of PCRX indicates a rather cheap valuation: PCRX is cheaper than 96.35% of the companies listed in the same industry.
• 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 14.62% in the coming years.

Analyzing Profitability Metrics

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:PCRX, the assigned 7 is noteworthy for profitability:

• Looking at the Return On Assets, with a value of 4.46%, PCRX belongs to the top of the industry, outperforming 86.98% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 7.91%, PCRX belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
• The Return On Invested Capital of PCRX (4.27%) is better than 82.29% of its industry peers.
• PCRX's Profit Margin of 10.35% is amongst the best of the industry. PCRX outperforms 87.50% of its industry peers.
• With an excellent Operating Margin value of 13.71%, PCRX belongs to the best of the industry, outperforming 85.42% of the companies in the same industry.
• 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 78.65% of its industry peers.

What does the Health looks like 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 1.74. This is in the better half of the industry: PCRX outperforms 65.63% 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's Debt to FCF ratio of 3.00 is amongst the best of the industry. PCRX outperforms 90.10% of its industry peers.
• A Current Ratio of 5.81 indicates that PCRX has no problem at all paying its short term obligations.
• The Current ratio of PCRX (5.81) is better than 68.75% of its industry peers.
• 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 60.42% of its industry peers.

ChartMill's Evaluation of Growth

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:PCRX was assigned a score of 6 for growth:

• PCRX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.37%, which is quite impressive.
• 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 15.29% yearly.
• The Revenue is expected to grow by 8.72% 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

This article should in no way be interpreted as advice. 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.