Don't overlook NASDAQ:NBIX—it's a hidden gem with strong fundamentals and an attractive price tag.

Last update: Apr 5, 2024

Uncover the potential of NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX) as our stock screener's choice for an undervalued stock. NASDAQ:NBIX maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Assessing Valuation Metrics for NASDAQ:NBIX

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:NBIX boasts a 7 out of 10:

Based on the Price/Earnings ratio, NBIX is valued cheaply inside the industry as 94.87% of the companies are valued more expensively.
Based on the Price/Forward Earnings ratio, NBIX is valued cheaply inside the industry as 95.38% 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 95.21% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NBIX is valued cheaply inside the industry as 95.56% of the companies are valued more expensively.
NBIX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of NBIX may justify a higher PE ratio.
NBIX's earnings are expected to grow with 53.13% in the coming years. This may justify a more expensive valuation.

Profitability Insights: NASDAQ:NBIX

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:NBIX scores a 9 out of 10:

With an excellent Return On Assets value of 7.68%, NBIX belongs to the best of the industry, outperforming 96.75% of the companies in the same industry.
The Return On Equity of NBIX (11.19%) is better than 96.41% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.21%, NBIX belongs to the top of the industry, outperforming 96.92% of the companies in the same industry.
The 3 year average ROIC (9.89%) for NBIX is below the current ROIC(11.21%), indicating increased profibility in the last year.
NBIX's Profit Margin of 13.23% is amongst the best of the industry. NBIX outperforms 96.92% of its industry peers.
In the last couple of years the Profit Margin of NBIX has grown nicely.
With an excellent Operating Margin value of 20.92%, NBIX belongs to the best of the industry, outperforming 97.09% of the companies in the same industry.
NBIX's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 97.90%, NBIX belongs to the best of the industry, outperforming 98.12% of the companies in the same industry.

How We Gauge Health for NASDAQ:NBIX

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:NBIX scores a 7 out of 10:

NBIX has an Altman-Z score of 9.32. This indicates that NBIX is financially healthy and has little risk of bankruptcy at the moment.
NBIX's Altman-Z score of 9.32 is amongst the best of the industry. NBIX outperforms 85.64% 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.
A Current Ratio of 2.45 indicates that NBIX has no problem at all paying its short term obligations.
A Quick Ratio of 2.40 indicates that NBIX has no problem at all paying its short term obligations.

ChartMill's Evaluation of Growth

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:NBIX has earned a 9 for growth:

NBIX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 58.17%, which is quite impressive.
The Earnings Per Share has been growing by 70.09% 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 26.76%.
The Revenue has been growing by 33.13% on average over the past years. This is a very strong growth!
Based on estimates for the next years, NBIX will show a very strong growth in Earnings Per Share. The EPS will grow by 42.64% on average per year.
The Revenue is expected to grow by 13.87% on average over the next years. This is quite good.

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

Disclaimer

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.