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

Our stock screener has singled out PACIRA BIOSCIENCES INC (NASDAQ:PCRX) as a stellar value proposition. NASDAQ:PCRX not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Evaluating Valuation: 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 9 for valuation:

• A Price/Earnings ratio of 6.47 indicates a rather cheap valuation of PCRX.
• Compared to the rest of the industry, the Price/Earnings ratio of PCRX indicates a rather cheap valuation: PCRX is cheaper than 96.24% of the companies listed in the same industry.
• When comparing the Price/Earnings ratio of PCRX to the average of the S&P500 Index (26.91), we can say PCRX is valued rather cheaply.
• PCRX is valuated cheaply with a Price/Forward Earnings ratio of 6.41.
• Based on the Price/Forward Earnings ratio, PCRX is valued cheaper than 95.16% of the companies in the same industry.
• PCRX is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.26, which is the current average of the S&P500 Index.
• PCRX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PCRX is cheaper than 96.24% of the companies 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 97.85% of the companies listed in the same industry.
• PCRX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The decent profitability rating of PCRX may justify a higher PE ratio.

A Closer Look at Profitability for NASDAQ:PCRX

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:

• PCRX has a better Return On Assets (-5.37%) than 77.96% of its industry peers.
• PCRX's Return On Equity of -10.91% is fine compared to the rest of the industry. PCRX outperforms 76.88% of its industry peers.
• The Return On Invested Capital of PCRX (6.55%) is better than 84.95% of its industry peers.
• The 3 year average ROIC (4.32%) for PCRX is below the current ROIC(6.55%), indicating increased profibility in the last year.
• PCRX has a better Operating Margin (13.59%) than 84.41% of its industry peers.
• In the last couple of years the Operating Margin of PCRX has grown nicely.
• The Gross Margin of PCRX (73.82%) is better than 80.11% of its industry peers.

Evaluating Health: NASDAQ:PCRX

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:PCRX has earned a 5 out of 10:

• PCRX's Altman-Z score of 1.66 is fine compared to the rest of the industry. PCRX outperforms 63.98% of its industry peers.
• PCRX has a debt to FCF ratio of 3.04. This is a good value and a sign of high solvency as PCRX would need 3.04 years to pay back of all of its debts.
• PCRX's Debt to FCF ratio of 3.04 is amongst the best of the industry. PCRX outperforms 91.94% of its industry peers.
• A Current Ratio of 2.25 indicates that PCRX has no problem at all paying its short term obligations.

What does the Growth looks like for NASDAQ:PCRX

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:PCRX, the assigned 6 reflects its growth potential:

• The Earnings Per Share has grown by an nice 12.72% 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 grown by 29.50% in the past year. 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 8.83% on average over the next years. This is quite good.

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.

Disclaimer

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.