NASDAQ:NBIX, a growth stock which is not overvalued.

Last update: Jan 15, 2024

Uncover the potential of NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX), a growth stock that our stock screener found to be reasonably priced. NASDAQ:NBIX is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

ChartMill's Evaluation of Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:NBIX scores a 9 out of 10:

NBIX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 226.32%, which is quite impressive.
The Earnings Per Share has been growing by 66.75% on average over the past years. This is a very strong growth
NBIX shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.46%.
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 51.63% on average over the next years. This is a very strong growth
Based on estimates for the next years, NBIX will show a quite strong growth in Revenue. The Revenue will grow by 17.00% on average per year.

A Closer Look at Valuation 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 94.44% of the companies in the same industry.
Based on the Price/Forward Earnings ratio, NBIX is valued cheaply inside the industry as 96.13% of the companies are valued more expensively.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NBIX indicates a rather cheap valuation: NBIX is cheaper than 94.44% of the companies listed in the same industry.
95.79% of the companies in the same industry are more expensive than NBIX, based on the Price/Free Cash Flow ratio.
The excellent profitability rating of NBIX may justify a higher PE ratio.
NBIX's earnings are expected to grow with 62.67% in the coming years. This may justify a more expensive valuation.

Health Insights: NASDAQ:NBIX

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:NBIX was assigned a score of 7 for health:

NBIX has an Altman-Z score of 10.48. This indicates that NBIX is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 10.48, NBIX belongs to the best of the industry, outperforming 86.03% of the companies in the same industry.
NBIX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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.
NBIX has a Quick Ratio of 2.34. This indicates that NBIX is financially healthy and has no problem in meeting its short term obligations.

Profitability Examination 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:

NBIX has a Return On Assets of 6.71%. This is amongst the best in the industry. NBIX outperforms 96.63% of its industry peers.
With an excellent Return On Equity value of 9.54%, NBIX belongs to the best of the industry, outperforming 95.79% of the companies in the same industry.
NBIX has a better Return On Invested Capital (12.95%) than 96.97% 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.
NBIX's Profit Margin of 10.71% is amongst the best of the industry. NBIX outperforms 96.30% of its industry peers.
In the last couple of years the Profit Margin of NBIX has grown nicely.
The Operating Margin of NBIX (19.50%) is better than 96.80% of its industry peers.
NBIX has a Gross Margin of 97.82%. This is amongst the best in the industry. NBIX outperforms 97.47% of its industry peers.

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

For an up to date full fundamental analysis you can check the fundamental report of NBIX

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.