PACIRA BIOSCIENCES INC (NASDAQ:PCRX) is an undervalued gem with solid fundamentals.

PACIRA BIOSCIENCES INC (NASDAQ:PCRX) was identified as a decent value stock by our stock screener. PCRX scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Unpacking PCRX's Valuation Rating

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. PCRX boasts a 8 out of 10:

• PCRX is valuated cheaply with a Price/Earnings ratio of 7.20.
• Compared to the rest of the industry, the Price/Earnings ratio of PCRX indicates a rather cheap valuation: PCRX is cheaper than 93.33% of the companies listed in the same industry.
• The average S&P500 Price/Earnings ratio is at 27.10. PCRX is valued rather cheaply when compared to this.
• Based on the Price/Forward Earnings ratio of 8.02, the valuation of PCRX can be described as reasonable.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of PCRX indicates a rather cheap valuation: PCRX is cheaper than 91.79% of the companies listed in the same industry.
• PCRX is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.33, which is the current average of the S&P500 Index.
• Based on the Enterprise Value to EBITDA ratio, PCRX is valued cheaper than 95.38% of the companies in the same industry.
• 95.38% of the companies in the same industry are more expensive than PCRX, based on the Price/Free Cash Flow ratio.
• The decent profitability rating of PCRX may justify a higher PE ratio.

Looking at the Profitability

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 PCRX, the assigned 7 is noteworthy for profitability:

• PCRX has a better Return On Assets (-5.83%) than 74.36% of its industry peers.
• Looking at the Return On Equity, with a value of -11.64%, PCRX is in the better half of the industry, outperforming 76.41% of the companies in the same industry.
• PCRX's Return On Invested Capital of 6.16% is amongst the best of the industry. PCRX outperforms 84.62% of its industry peers.
• The 3 year average ROIC (4.17%) for PCRX is below the current ROIC(6.16%), indicating increased profibility in the last year.
• PCRX has a Operating Margin of 12.98%. This is amongst the best in the industry. PCRX outperforms 83.08% of its industry peers.
• PCRX's Operating Margin has improved in the last couple of years.
• PCRX has a better Gross Margin (74.91%) than 82.05% of its industry peers.

How We Gauge Health for 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 PCRX, the assigned 6 reflects its health status:

• With a decent Altman-Z score value of 1.82, PCRX is doing good in the industry, outperforming 67.69% of the companies in the same industry.
• PCRX has a debt to FCF ratio of 3.27. This is a good value and a sign of high solvency as PCRX would need 3.27 years to pay back of all of its debts.
• With an excellent Debt to FCF ratio value of 3.27, PCRX belongs to the best of the industry, outperforming 91.28% of the companies in the same industry.
• A Debt/Equity ratio of 0.49 indicates that PCRX is not too dependend on debt financing.
• PCRX has a Current Ratio of 2.40. This indicates that PCRX is financially healthy and has no problem in meeting its short term obligations.
• A Quick Ratio of 2.00 indicates that PCRX has no problem at all paying its short term obligations.

Assessing Growth Metrics for 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 PCRX, the assigned 6 reflects its growth potential:

• The Earnings Per Share has grown by an nice 9.93% over the past 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.
• The Revenue has grown by 28.62% 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 10.73% on average per year.
• Based on estimates for the next years, PCRX will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.10% on average per year.
• PCRX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.52% yearly.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

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.