NASDAQ:NBIX stands out as a growth opportunity that won't break the bank.

Last update: Nov 7, 2023

NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX) was identified as an affordable growth stock by our stock screener. NASDAQ:NBIX 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.

Assessing Growth Metrics for NASDAQ:NBIX

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:NBIX has achieved a 9 out of 10:

The Earnings Per Share has grown by an impressive 226.32% over the past year.
NBIX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 66.75% yearly.
The Revenue has grown by 28.46% 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 50.12% 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 16.42% yearly.

Valuation Examination for NASDAQ:NBIX

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. NASDAQ:NBIX was assigned a score of 6 for valuation:

Based on the Price/Earnings ratio, NBIX is valued cheaply inside the industry as 94.53% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NBIX indicates a rather cheap valuation: NBIX is cheaper than 96.02% of the companies listed in the same industry.
Based on the Enterprise Value to EBITDA ratio, NBIX is valued cheaply inside the industry as 94.86% of the companies are valued more expensively.
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 65.62% in the coming years.

What does the Health looks like for NASDAQ:NBIX

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:NBIX has earned a 7 out of 10:

An Altman-Z score of 9.12 indicates that NBIX is not in any danger for bankruptcy at the moment.
NBIX has a better Altman-Z score (9.12) than 88.72% of its industry peers.
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 2.39. This indicates that NBIX is financially healthy and has no problem in meeting its short term obligations.
A Quick Ratio of 2.34 indicates that NBIX has no problem at all paying its short term obligations.

Assessing Profitability for NASDAQ:NBIX

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:NBIX, the assigned 8 is noteworthy for profitability:

Looking at the Return On Assets, with a value of 6.71%, NBIX belongs to the top of the industry, outperforming 95.69% of the companies in the same industry.
NBIX has a better Return On Equity (9.54%) than 95.52% of its industry peers.
The Return On Invested Capital of NBIX (12.95%) is better than 97.51% of its industry peers.
The 3 year average ROIC (12.37%) for NBIX is below the current ROIC(12.95%), indicating increased profibility in the last year.
Looking at the Profit Margin, with a value of 10.71%, NBIX belongs to the top of the industry, outperforming 95.69% of the companies in the same industry.
NBIX's Profit Margin has improved in the last couple of years.
NBIX has a better Operating Margin (19.50%) than 97.18% of its industry peers.
NBIX has a Gross Margin of 97.82%. This is amongst the best in the industry. NBIX outperforms 98.18% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Check the latest full fundamental report of NBIX for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.