PACIRA BIOSCIENCES INC (NASDAQ:PCRX) – An Undervalued Stock with Strong Fundamentals

PACIRA BIOSCIENCES INC (NASDAQ:PCRX) was identified by our stock screener as a potential value opportunity. The company, which specializes in non-opioid pain management solutions, shows a combination of attractive valuation metrics and solid fundamentals.

Valuation

PCRX stands out with a Valuation Rating of 8/10, indicating it is priced well below industry averages. Key highlights include:

• A P/E ratio of 7.58, significantly lower than the S&P 500 average of 26.57.
• A Price/Forward Earnings ratio of 6.84, cheaper than 91.8% of its pharmaceutical peers.
• An Enterprise Value/EBITDA ratio that ranks favorably against 96.9% of the industry.

Profitability

The company earns a Profitability Rating of 7/10, supported by:

• A strong Operating Margin of 12.16%, outperforming 83% of competitors.
• A Gross Margin of 76.46%, better than 85% of industry peers.
• A Return on Invested Capital (ROIC) of 5.65%, placing it in the top quartile of its sector.

Financial Health

PCRX has a Health Rating of 5/10, with some strengths and areas to monitor:

• A Current Ratio of 2.41, indicating sufficient liquidity.
• A Debt-to-Equity ratio of 0.48, suggesting manageable leverage.
• However, its Altman-Z score of 1.79 signals some financial risk, though it still ranks better than 65% of peers.

Growth

With a Growth Rating of 5/10, PCRX shows steady expansion:

• Revenue grew 27.6% over the past year, with a 5-year average growth rate of 10.7%.
• EPS increased by 6.6% in the last year, with a 5-year average growth of 14%.
• Future EPS growth is projected at 9.3% annually, though revenue growth is expected to slow slightly.

Our Decent Value screener lists more stocks with similar characteristics.
For a deeper look, review the full fundamental report on PCRX.

Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.