Pacira BioSciences, Inc. (NASDAQ: PCRX)

Sector: Healthcare Industry: Drug Manufacturers - Specialty & Generic CIK: 0001396814
Market Cap 1.21 Bn
P/B 1.66
P/E 56.26
P/S 1.68
ROIC (Qtr) 1.86
Div Yield % 0.00
Rev 1y % (Qtr) 6.49
Total Debt (Qtr) 425.31 Mn
Debt/Equity (Qtr) 0.58

About

Pacira BioSciences, Inc. (PCRX) is a biopharmaceutical company that operates in the healthcare industry. The company specializes in the development and commercialization of non-opioid pain management products, with a focus on providing long-lasting pain relief without the use of opioids. Pacira was incorporated in 2006 and has its principal executive offices and corporate headquarters located in Tampa, Florida. Pacira's main business activities involve the development and commercialization of non-opioid pain management products, including EXPAREL,...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 147.59M provide 15.14x coverage of short-term debt 9.75M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of 124.20M exceeds capital expenditure of 17.23M by 7.21x, indicating strong organic growth funding capability.
  • Short-term investments of 98.75M provide solid 1.24x coverage of other current liabilities 79.64M, indicating strong liquidity.
  • Operating cash flow of 141.44M provides solid 1.32x coverage of current liabilities 107.08M, showing strong operational health.
  • Tangible assets of 894.86M provide robust 11.24x coverage of other current liabilities 79.64M, indicating strong asset backing.

Bear case

  • Investment activities of 79.78M provide weak support for R&D spending of 103.41M, which is 0.77x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 147.59M provide limited coverage of acquisition spending of (16.70M), which is -8.84x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 141.44M shows concerning coverage of stock compensation expenses of 56.27M, with a 2.51 ratio indicating potential earnings quality issues.
  • Free cash flow of 124.20M represents just -0.57x of debt issuance (216.81M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating earnings of 60.06M show weak coverage of depreciation charges of 90.92M, with a 0.66 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Drug Manufacturers - Specialty & Generic
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ZTS Zoetis Inc. 56.15 Bn 21.18 5.98 7.27 Bn
2 TAK Takeda Pharmaceutical Co Ltd 48.92 Bn 221.13 1.66 36.24 Bn
3 HLN Haleon plc 46.13 Bn 25.59 3.29 -
4 TEVA Teva Pharmaceutical Industries Ltd 35.27 Bn 49.54 2.10 17.07 Bn
5 UTHR UNITED THERAPEUTICS Corp 21.76 Bn 17.11 6.95 0.00 Bn
6 VTRS Viatris Inc 14.87 Bn -4.03 1.05 14.44 Bn
7 NBIX Neurocrine Biosciences Inc 14.08 Bn 32.91 5.25 0.43 Bn
8 ELAN Elanco Animal Health Inc 11.64 Bn 323.29 2.54 4.32 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.18 24.98
EV to Cash from Ops. EV/CFO 10.87 -85.40
EV to Debt EV to Debt 3.61 265.88
EV to EBIT EV/EBIT 25.59 -32.65
EV to EBITDA EV/EBITDA 11.60 -29.50
EV to Free Cash Flow [EV/FCF] EV/FCF 12.38 -32.62
EV to Market Cap EV to Market Cap 1.27 -10.98
EV to Revenue EV/Rev 2.14 -700.14
Price to Book Value [P/B] P/B 1.66 27.22
Price to Earnings [P/E] P/E 56.26 -122.96
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.34
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.81
Dividend per Basic Share Div per Share (Qtr) 0.00 0.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.08
Interest Coverage Int. cover (Qtr) 3.29 -38.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -67.05 -157.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -40.00 44,776.25
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 147.01 24.45
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 1,091.36 18.14
EBIT Growth (1y) % EBIT 1y % (Qtr) 251.54 37.66
EBT Growth (1y) % EBT 1y % (Qtr) 176.17 108.18
EPS Growth (1y) % EPS 1y % (Qtr) 123.35 52.88
FCF Growth (1y) % FCF 1y % (Qtr) -35.82 -54.47
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 9.82 25.28
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.55 0.50
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 1.38 2.10
Current Ratio Curr Ratio (Qtr) 5.26 3.92
Debt to Equity Ratio Debt/Equity (Qtr) 0.58 -1.11
Interest Cover Ratio Int Coverage (Qtr) 3.29 -38.10
Times Interest Earned Times Interest Earned (Qtr) 3.29 -38.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 21.10 -62,432.09
EBIT Margin % EBIT Margin % (Qtr) 8.38 -63,260.88
EBT Margin % EBT Margin % (Qtr) 5.84 -66,726.96
Gross Margin % Gross Margin % (Qtr) 79.20 8,332.72
Net Profit Margin % Net Margin % (Qtr) 3.00 -66,728.37