PACIRA BIOSCIENCES INC (NASDAQ:PCRX), a growth stock which is not overvalued.

Our stock screener has spotted PACIRA BIOSCIENCES INC (NASDAQ:PCRX) as a growth stock which is not overvalued. PCRX is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Evaluating Growth: 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 7 reflects its growth potential:

• The Earnings Per Share has grown by an nice 9.93% over the past year.
• The Earnings Per Share has been growing by 13.96% on average over the past years. This is quite good.
• Looking at the last year, PCRX shows a very strong growth in Revenue. The Revenue has grown by 28.62%.
• PCRX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.73% yearly.
• PCRX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.49% yearly.
• The Revenue is expected to grow by 9.51% on average over the next years. This is quite good.

Understanding PCRX's Valuation Score

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. PCRX has earned a 8 for valuation:

• Based on the Price/Earnings ratio of 7.78, the valuation of PCRX can be described as very cheap.
• Based on the Price/Earnings ratio, PCRX is valued cheaper than 92.89% of the companies in the same industry.
• PCRX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.55.
• A Price/Forward Earnings ratio of 8.66 indicates a reasonable valuation of PCRX.
• 89.85% of the companies in the same industry are more expensive than PCRX, based on the Price/Forward Earnings ratio.
• PCRX is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.37, which is the current average of the S&P500 Index.
• Based on the Enterprise Value to EBITDA ratio, PCRX is valued cheaply inside the industry as 93.91% of the companies are valued more expensively.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of PCRX indicates a rather cheap valuation: PCRX is cheaper than 93.40% of the companies listed in the same industry.
• PCRX has a very decent profitability rating, which may justify a higher PE ratio.

A Closer Look at Health for PCRX

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. PCRX has achieved a 6 out of 10:

• Looking at the Altman-Z score, with a value of 1.84, PCRX is in the better half of the industry, outperforming 68.02% of the companies in the same industry.
• The Debt to FCF ratio of PCRX is 3.27, which is a good value as it means it would take PCRX, 3.27 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of PCRX (3.27) is better than 90.36% of its industry peers.
• A Debt/Equity ratio of 0.49 indicates that PCRX is not too dependend on debt financing.
• A Current Ratio of 2.40 indicates that PCRX has no problem at all paying its short term obligations.
• PCRX has a Quick Ratio of 2.00. This indicates that PCRX is financially healthy and has no problem in meeting its short term obligations.

Exploring PCRX's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For PCRX, the assigned 7 is a significant indicator of profitability:

• PCRX has a Return On Assets of -5.83%. This is in the better half of the industry: PCRX outperforms 73.10% of its industry peers.
• PCRX has a Return On Equity of -11.64%. This is in the better half of the industry: PCRX outperforms 77.16% of its industry peers.
• PCRX has a Return On Invested Capital of 6.16%. This is amongst the best in the industry. PCRX outperforms 84.26% 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's Operating Margin of 12.98% is amongst the best of the industry. PCRX outperforms 82.74% of its industry peers.
• In the last couple of years the Operating Margin of PCRX has grown nicely.
• PCRX's Gross Margin of 74.91% is amongst the best of the industry. PCRX outperforms 80.71% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of PCRX

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.