NASDAQ:NBIX is not too expensive for the growth it is showing.

Our stock screener has spotted NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX) as a growth stock which is not overvalued. NASDAQ:NBIX is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Deciphering NASDAQ:NBIX's Growth Rating

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:NBIX, the assigned 9 reflects its growth potential:

• 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
• Looking at the last year, NBIX shows a very strong growth in Revenue. 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.
• NBIX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 51.63% yearly.
• Based on estimates for the next years, NBIX will show a quite strong growth in Revenue. The Revenue will grow by 17.43% on average per year.

A Closer Look at Valuation for NASDAQ:NBIX

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:NBIX has earned a 6 for valuation:

• Based on the Price/Earnings ratio, NBIX is valued cheaply inside the industry as 94.41% of the companies are valued more expensively.
• Based on the Price/Forward Earnings ratio, NBIX is valued cheaply inside the industry as 95.42% of the companies are valued more expensively.
• NBIX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NBIX is cheaper than 94.24% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, NBIX is valued cheaper than 95.59% of the companies in the same industry.
• The excellent profitability rating of NBIX may justify a higher PE ratio.
• NBIX's earnings are expected to grow with 61.64% in the coming years. This may justify a more expensive valuation.

Unpacking NASDAQ:NBIX's Health Rating

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:NBIX has earned a 7 out of 10:

• NBIX has an Altman-Z score of 11.15. 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 11.15, NBIX belongs to the top of the industry, outperforming 87.29% 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.

Understanding NASDAQ:NBIX's Profitability

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 96.61% of the companies in the same industry.
• NBIX has a better Return On Equity (9.54%) than 95.76% of its industry peers.
• With an excellent Return On Invested Capital value of 12.95%, NBIX belongs to the best of the industry, outperforming 97.12% of the companies in the same industry.
• The last Return On Invested Capital (12.95%) for NBIX is above the 3 year average (12.37%), which is a sign of increasing profitability.
• With an excellent Profit Margin value of 10.71%, NBIX belongs to the best of the industry, outperforming 96.27% of the companies in the same industry.
• In the last couple of years the Profit Margin of NBIX has grown nicely.
• NBIX's Operating Margin of 19.50% is amongst the best of the industry. NBIX outperforms 96.78% of its industry peers.
• NBIX's Gross Margin of 97.82% is amongst the best of the industry. NBIX outperforms 97.46% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Our latest full fundamental report of NBIX contains the most current fundamental analsysis.

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.