For those who appreciate value investing, NASDAQ:PCRX is a compelling option with its solid fundamentals.

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 9 out of 10:

• PCRX is valuated cheaply with a Price/Earnings ratio of 7.92.
• Based on the Price/Earnings ratio, PCRX is valued cheaply inside the industry as 94.57% of the companies are valued more expensively.
• The average S&P500 Price/Earnings ratio is at 29.53. PCRX is valued rather cheaply when compared to this.
• Based on the Price/Forward Earnings ratio of 7.19, the valuation of PCRX can be described as very cheap.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of PCRX indicates a rather cheap valuation: PCRX is cheaper than 92.93% of the companies listed in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 22.65, PCRX is valued rather cheaply.
• Based on the Enterprise Value to EBITDA ratio, PCRX is valued cheaper than 95.65% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, PCRX is valued cheaply inside the industry as 96.20% 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.
• 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 13.25% in the coming years.

Profitability Insights: NASDAQ:PCRX

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:PCRX was assigned a score of 7 for profitability:

• Looking at the Return On Assets, with a value of -5.37%, PCRX is in the better half of the industry, outperforming 76.09% of the companies in the same industry.
• PCRX has a Return On Equity of -10.91%. This is in the better half of the industry: PCRX outperforms 76.09% of its industry peers.
• The Return On Invested Capital of PCRX (6.55%) is better than 85.33% of its industry peers.
• The last Return On Invested Capital (6.55%) for PCRX is above the 3 year average (4.32%), which is a sign of increasing profitability.
• PCRX's Operating Margin of 13.59% is amongst the best of the industry. PCRX outperforms 84.24% 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 80.43% of its industry peers.

Health Assessment of NASDAQ:PCRX

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:PCRX scores a 5 out of 10:

• With a decent Altman-Z score value of 1.82, PCRX is doing good in the industry, outperforming 65.76% of the companies in the same industry.
• 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 90.76% 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.

ChartMill's Evaluation of Growth

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:PCRX boasts 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!
• Measured over the past years, PCRX shows a quite strong growth in Revenue. The Revenue has been growing by 14.88% on average per year.
• The Earnings Per Share is expected to grow by 13.86% on average over the next years. This is quite good.

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

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.