Despite its growth, NASDAQ:NBIX remains within the realm of affordability.

Last update: Oct 16, 2023

Consider NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX) as an affordable growth stock, identified by our stock screening tool. NASDAQ:NBIX is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Growth Analysis for NASDAQ:NBIX

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:NBIX has received a 9 out of 10:

NBIX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 232.69%, which is quite impressive.
Measured over the past years, NBIX shows a very strong growth in Earnings Per Share. The EPS has been growing by 66.75% on average per year.
The Revenue has grown by 29.01% in the past year. This is a very strong growth!
Measured over the past years, NBIX shows a very strong growth in Revenue. The Revenue has been growing by 55.91% on average per year.
The Earnings Per Share is expected to grow by 48.84% on average over the next years. This is a very strong growth
NBIX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.72% yearly.

Valuation Examination for NASDAQ:NBIX

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:NBIX has received a 6 out of 10:

NBIX's Price/Earnings ratio is rather cheap when compared to the industry. NBIX is cheaper than 94.20% of the companies in the same industry.
Based on the Price/Forward Earnings ratio, NBIX is valued cheaper than 96.02% of the companies in the same industry.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NBIX indicates a rather cheap valuation: NBIX is cheaper than 94.53% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NBIX is valued cheaply inside the industry as 95.85% of the companies are valued more expensively.
The excellent profitability rating of NBIX may justify a higher PE ratio.
A more expensive valuation may be justified as NBIX's earnings are expected to grow with 64.74% in the coming years.

A Closer Look at Health for NASDAQ:NBIX

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. NASDAQ:NBIX has achieved a 7 out of 10:

NBIX has an Altman-Z score of 9.92. This indicates that NBIX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.92, NBIX belongs to the top of the industry, outperforming 90.38% of the companies in the same industry.
There is no outstanding debt for NBIX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
NBIX has a Current Ratio of 2.57. This indicates that NBIX is financially healthy and has no problem in meeting its short term obligations.
A Quick Ratio of 2.51 indicates that NBIX has no problem at all paying its short term obligations.

Evaluating Profitability: NASDAQ:NBIX

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:NBIX has achieved a 8:

The Return On Assets of NBIX (6.75%) is better than 96.02% of its industry peers.
Looking at the Return On Equity, with a value of 9.52%, NBIX belongs to the top of the industry, outperforming 95.85% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.65%, NBIX belongs to the top of the industry, outperforming 97.01% of the companies in the same industry.
NBIX's Profit Margin of 10.54% is amongst the best of the industry. NBIX outperforms 95.85% of its industry peers.
In the last couple of years the Profit Margin of NBIX has grown nicely.
NBIX's Operating Margin of 17.60% is amongst the best of the industry. NBIX outperforms 97.01% of its industry peers.
NBIX has a Gross Margin of 97.98%. This is amongst the best in the industry. NBIX outperforms 98.51% 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 NBIX

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.