Despite its impressive fundamentals, NASDAQ:PCRX remains undervalued.

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.

Assessing Valuation 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 9 out of 10:

• PCRX is valuated reasonably with a Price/Earnings ratio of 8.25.
• 94.62% 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 28.46.
• A Price/Forward Earnings ratio of 7.84 indicates a rather cheap valuation of PCRX.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of PCRX indicates a rather cheap valuation: PCRX is cheaper than 93.55% of the companies listed in the same industry.
• PCRX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.87.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PCRX indicates a rather cheap valuation: PCRX is cheaper than 95.70% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, PCRX is valued cheaply inside the industry as 96.24% of the companies are valued more expensively.
• The 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 more expensive valuation may be justified as PCRX's earnings are expected to grow with 13.25% in the coming years.

Analyzing Profitability Metrics

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:PCRX scores a 7 out of 10:

• Looking at the Return On Assets, with a value of -5.37%, PCRX is in the better half of the industry, outperforming 78.49% of the companies in the same industry.
• The Return On Equity of PCRX (-10.91%) is better than 76.88% of its industry peers.
• PCRX has a better Return On Invested Capital (6.55%) 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.
• The Operating Margin of PCRX (13.59%) is better than 84.41% of its industry peers.
• In the last couple of years the Operating Margin of PCRX has grown nicely.
• With an excellent Gross Margin value of 73.82%, PCRX belongs to the best of the industry, outperforming 80.11% of the companies in the same industry.

Unpacking NASDAQ:PCRX's Health Rating

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 5 out of 10:

• PCRX has a better Altman-Z score (1.86) than 67.20% of its industry peers.
• The Debt to FCF ratio of PCRX is 3.04, which is a good value as it means it would take PCRX, 3.04 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 3.04, PCRX belongs to the top of the industry, outperforming 91.40% of the companies in the same industry.
• A Current Ratio of 2.25 indicates that PCRX has no problem at all paying its short term obligations.

Deciphering NASDAQ:PCRX's Growth Rating

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:PCRX has received a 6 out of 10:

• PCRX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.72%, which is quite good.
• 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.
• PCRX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.86% yearly.

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Our latest full fundamental report of PCRX contains the most current fundamental analsysis.

Disclaimer

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.