NASDAQ:PCRX is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Aug 8, 2024

Uncover the potential of PACIRA BIOSCIENCES INC (NASDAQ:PCRX) as our stock screener's choice for an undervalued stock. NASDAQ:PCRX maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Valuation Analysis for NASDAQ:PCRX

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:PCRX scores a 8 out of 10:

With a Price/Earnings ratio of 7.16, the valuation of PCRX can be described as very cheap.
Based on the Price/Earnings ratio, PCRX is valued cheaply inside the industry as 95.34% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.36. PCRX is valued rather cheaply when compared to this.
PCRX is valuated cheaply with a Price/Forward Earnings ratio of 6.00.
Based on the Price/Forward Earnings ratio, PCRX is valued cheaply inside the industry as 95.34% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.01, PCRX is valued rather cheaply.
PCRX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PCRX is cheaper than 94.82% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PCRX is valued cheaply inside the industry as 96.37% of the companies are valued more expensively.
The excellent 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 14.98% in the coming years.

Analyzing Profitability Metrics

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 8 is a significant indicator of profitability:

PCRX has a Return On Assets of 3.86%. This is amongst the best in the industry. PCRX outperforms 86.53% of its industry peers.
PCRX has a Return On Equity of 7.24%. This is amongst the best in the industry. PCRX outperforms 87.05% of its industry peers.
PCRX has a Return On Invested Capital of 4.43%. This is amongst the best in the industry. PCRX outperforms 81.87% of its industry peers.
The 3 year average ROIC (4.32%) for PCRX is below the current ROIC(4.43%), indicating increased profibility in the last year.
PCRX has a better Profit Margin (9.22%) than 86.53% of its industry peers.
PCRX has a better Operating Margin (14.65%) than 84.97% of its industry peers.
In the last couple of years the Operating Margin of PCRX has grown nicely.
PCRX has a Gross Margin of 74.06%. This is in the better half of the industry: PCRX outperforms 79.27% of its industry peers.

Health Insights: NASDAQ:PCRX

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:PCRX, the assigned 6 reflects its health status:

Looking at the Altman-Z score, with a value of 1.73, PCRX is in the better half of the industry, outperforming 65.28% of the companies in the same industry.
PCRX has a debt to FCF ratio of 3.19. This is a good value and a sign of high solvency as PCRX would need 3.19 years to pay back of all of its debts.
The Debt to FCF ratio of PCRX (3.19) is better than 89.12% of its industry peers.
A Current Ratio of 6.82 indicates that PCRX has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 6.82, PCRX is in the better half of the industry, outperforming 73.06% of the companies in the same industry.
PCRX has a Quick Ratio of 5.70. This indicates that PCRX is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 5.70, PCRX is doing good in the industry, outperforming 67.88% of the companies in the same industry.

Understanding NASDAQ:PCRX's Growth

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 nice 13.45% 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.
The Earnings Per Share is expected to grow by 15.29% 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 8.72% on average per year.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

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.