20.67 USD
-0.1 (-0.48%)
21.08 USD
+0.41 (+1.98%)
We assign a fundamental rating of 6 out of 10 to PCRX. PCRX was compared to 190 industry peers in the Pharmaceuticals industry. While PCRX has a great profitability rating, there are some minor concerns on its financial health. PCRX has a bad growth rate and is valued cheaply. This makes PCRX very considerable for value investing!
1. Profitability
1.1 Basic Checks
- PCRX had positive earnings in the past year.
- In the past year PCRX had a positive cash flow from operations.
- Of the past 5 years PCRX 4 years were profitable.
- Each year in the past 5 years PCRX had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.65%, PCRX belongs to the top of the industry, outperforming 81.15% of the companies in the same industry.
- PCRX has a better Return On Equity (2.95%) than 82.20% of its industry peers.
- PCRX has a Return On Invested Capital of 3.63%. This is amongst the best in the industry. PCRX outperforms 81.68% of its industry peers.
- PCRX had an Average Return On Invested Capital over the past 3 years of 4.30%. This is significantly below the industry average of 12.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 2.95% | ||
| ROIC | 3.63% |
ROA(3y)-0.93%
ROA(5y)2.13%
ROE(3y)-1.97%
ROE(5y)4.66%
ROIC(3y)4.3%
ROIC(5y)4.55%
1.3 Margins
- The Profit Margin of PCRX (2.99%) is better than 79.58% of its industry peers.
- PCRX's Operating Margin of 8.88% is amongst the best of the industry. PCRX outperforms 81.15% of its industry peers.
- In the last couple of years the Operating Margin of PCRX has grown nicely.
- PCRX's Gross Margin of 79.17% is amongst the best of the industry. PCRX outperforms 84.29% of its industry peers.
- In the last couple of years the Gross Margin of PCRX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.88% | ||
| PM (TTM) | 2.99% | ||
| GM | 79.17% |
OM growth 3Y-15.96%
OM growth 5Y11.41%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.7%
GM growth 5Y0.27%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PCRX is destroying value.
- Compared to 1 year ago, PCRX has less shares outstanding
- PCRX has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, PCRX has a worse debt to assets ratio.
2.2 Solvency
- PCRX has an Altman-Z score of 1.85. This is not the best score and indicates that PCRX is in the grey zone with still only limited risk for bankruptcy at the moment.
- PCRX has a Altman-Z score (1.85) which is comparable to the rest of the industry.
- The Debt to FCF ratio of PCRX is 3.03, which is a good value as it means it would take PCRX, 3.03 years of fcf income to pay off all of its debts.
- PCRX has a better Debt to FCF ratio (3.03) than 90.58% of its industry peers.
- A Debt/Equity ratio of 0.52 indicates that PCRX is somewhat dependend on debt financing.
- PCRX's Debt to Equity ratio of 0.52 is on the low side compared to the rest of the industry. PCRX is outperformed by 63.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3.03 | ||
| Altman-Z | 1.85 |
ROIC/WACC0.46
WACC7.84%
2.3 Liquidity
- A Current Ratio of 5.26 indicates that PCRX has no problem at all paying its short term obligations.
- PCRX's Current ratio of 5.26 is fine compared to the rest of the industry. PCRX outperforms 64.92% of its industry peers.
- A Quick Ratio of 3.78 indicates that PCRX has no problem at all paying its short term obligations.
- With a decent Quick ratio value of 3.78, PCRX is doing good in the industry, outperforming 60.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.26 | ||
| Quick Ratio | 3.78 |
3. Growth
3.1 Past
- The earnings per share for PCRX have decreased by -6.90% in the last year.
- PCRX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.96% yearly.
- PCRX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.85%.
- The Revenue has been growing by 10.73% on average over the past years. This is quite good.
EPS 1Y (TTM)-6.9%
EPS 3Y2.39%
EPS 5Y13.96%
EPS Q2Q%-11.39%
Revenue 1Y (TTM)-16.85%
Revenue growth 3Y8.98%
Revenue growth 5Y10.73%
Sales Q2Q%6.49%
3.2 Future
- Based on estimates for the next years, PCRX will show a small growth in Earnings Per Share. The EPS will grow by 7.01% on average per year.
- The Revenue is expected to grow by 6.38% on average over the next years.
EPS Next Y-6.13%
EPS Next 2Y4.05%
EPS Next 3Y6.92%
EPS Next 5Y7.01%
Revenue Next Year4.33%
Revenue Next 2Y6.28%
Revenue Next 3Y7.3%
Revenue Next 5Y6.38%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 6.96, the valuation of PCRX can be described as very cheap.
- Based on the Price/Earnings ratio, PCRX is valued cheaper than 93.72% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. PCRX is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 5.95, the valuation of PCRX can be described as very cheap.
- Based on the Price/Forward Earnings ratio, PCRX is valued cheaper than 93.19% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of PCRX to the average of the S&P500 Index (25.98), we can say PCRX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.96 | ||
| Fwd PE | 5.95 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PCRX indicates a rather cheap valuation: PCRX is cheaper than 96.34% 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 95.81% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.16 | ||
| EV/EBITDA | 5.96 |
4.3 Compensation for Growth
- The decent profitability rating of PCRX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.5
EPS Next 2Y4.05%
EPS Next 3Y6.92%
5. Dividend
5.1 Amount
- PCRX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
PACIRA BIOSCIENCES INC / PCRX FAQ
What is the ChartMill fundamental rating of PACIRA BIOSCIENCES INC (PCRX) stock?
ChartMill assigns a fundamental rating of 6 / 10 to PCRX.
What is the valuation status for PCRX stock?
ChartMill assigns a valuation rating of 8 / 10 to PACIRA BIOSCIENCES INC (PCRX). This can be considered as Undervalued.
How profitable is PACIRA BIOSCIENCES INC (PCRX) stock?
PACIRA BIOSCIENCES INC (PCRX) has a profitability rating of 7 / 10.
What is the valuation of PACIRA BIOSCIENCES INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for PACIRA BIOSCIENCES INC (PCRX) is 6.96 and the Price/Book (PB) ratio is 1.22.