Don't overlook PACIRA BIOSCIENCES INC (NASDAQ:PCRX)—a stock with solid growth prospects and a reasonable valuation.

PACIRA BIOSCIENCES INC (NASDAQ:PCRX) was identified as an affordable growth stock by our stock screener. PCRX is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Unpacking PCRX's Growth Rating

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. PCRX was assigned a score of 7 for growth:

• 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.
• Looking at the last year, PCRX shows a very strong growth in Revenue. The Revenue has grown by 28.62%.
• The Revenue has been growing by 10.73% on average over the past years. This is quite good.
• 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.
• Based on estimates for the next years, PCRX will show a quite strong growth in Revenue. The Revenue will grow by 9.51% on average per year.

Valuation Analysis for PCRX

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of PCRX, the assigned 8 reflects its valuation:

• A Price/Earnings ratio of 8.04 indicates a reasonable valuation of PCRX.
• 91.92% of the companies in the same industry are more expensive than PCRX, based on the Price/Earnings ratio.
• PCRX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.10.
• PCRX is valuated reasonably with a Price/Forward Earnings ratio of 8.72.
• 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's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.74.
• 93.43% of the companies in the same industry are more expensive than PCRX, based on the Enterprise Value to EBITDA ratio.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of PCRX indicates a rather cheap valuation: PCRX is cheaper than 93.94% of the companies listed in the same industry.
• PCRX has a very decent profitability rating, which 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.

A Closer Look at Health for PCRX

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. PCRX has earned a 6 out of 10:

• PCRX has a Altman-Z score of 1.87. This is in the better half of the industry: PCRX outperforms 66.67% of its industry peers.
• 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.
• PCRX has a Debt to FCF ratio of 3.27. This is amongst the best in the industry. PCRX outperforms 89.39% of its industry peers.
• PCRX has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
• 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.
• 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.

A Closer Look at Profitability for 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. PCRX was assigned a score of 7 for profitability:

• PCRX's Return On Assets of -5.83% is fine compared to the rest of the industry. PCRX outperforms 71.72% of its industry peers.
• With a decent Return On Equity value of -11.64%, PCRX is doing good in the industry, outperforming 76.26% 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 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.
• The Operating Margin of PCRX (12.98%) is better than 82.32% of its industry peers.
• PCRX's Operating Margin has improved in the last couple of years.
• PCRX has a Gross Margin of 74.91%. This is amongst the best in the industry. PCRX outperforms 80.81% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Our latest full fundamental report of PCRX contains the most current fundamental analsysis.

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.