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

Consider PACIRA BIOSCIENCES INC (NASDAQ:PCRX) as a top value stock, identified by our stock screening tool. PCRX shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

How We Gauge Valuation for PCRX

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. PCRX was assigned a score of 8 for valuation:

• PCRX is valuated reasonably with a Price/Earnings ratio of 8.01.
• Based on the Price/Earnings ratio, PCRX is valued cheaply inside the industry as 91.92% of the companies are valued more expensively.
• When comparing the Price/Earnings ratio of PCRX to the average of the S&P500 Index (28.78), we can say PCRX is valued rather cheaply.
• With a Price/Forward Earnings ratio of 8.69, the valuation of PCRX can be described as very reasonable.
• Based on the Price/Forward Earnings ratio, PCRX is valued cheaply inside the industry as 89.90% of the companies are valued more expensively.
• PCRX is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.32, which is the current average of the S&P500 Index.
• 92.93% of the companies in the same industry are more expensive than PCRX, based on the Enterprise Value to EBITDA ratio.
• Based on the Price/Free Cash Flow ratio, PCRX is valued cheaper than 93.94% of the companies in the same industry.
• The decent profitability rating of PCRX may justify a higher PE ratio.
• PCRX's earnings are expected to grow with 13.10% in the coming years. This may justify a more expensive valuation.

Evaluating Profitability: PCRX

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:

• The Return On Assets of PCRX (-5.83%) is better than 72.22% of its industry peers.
• PCRX has a better Return On Equity (-11.64%) than 76.77% of its industry peers.
• PCRX has a better Return On Invested Capital (6.16%) than 83.84% of its industry peers.
• The last Return On Invested Capital (6.16%) for PCRX is above the 3 year average (4.17%), which is a sign of increasing profitability.
• Looking at the Operating Margin, with a value of 12.98%, PCRX belongs to the top of the industry, outperforming 82.32% of the companies in the same industry.
• PCRX's Operating Margin has improved in the last couple of years.
• Looking at the Gross Margin, with a value of 74.91%, PCRX belongs to the top of the industry, outperforming 80.81% of the companies in the same industry.

Health Examination 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 1.87, PCRX is in the better half of the industry, outperforming 67.17% 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.
• PCRX has a better Debt to FCF ratio (3.27) than 89.39% 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.

Looking at the Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. PCRX scores a 7 out of 10:

• 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!
• The Revenue has been growing by 10.73% on average over the past years. This is quite good.
• The Earnings Per Share is expected to grow by 13.49% on average over the next years. This is quite good.
• PCRX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.51% yearly.

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

Keep in mind

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.