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

Discover NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX), an undervalued growth gem identified by our stock screener. NASDAQ:NBIX is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Growth Analysis 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 58.17% over the past year.
• 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%.
• Measured over the past years, NBIX shows a very strong growth in Revenue. The Revenue has been growing by 33.13% on average per year.
• The Earnings Per Share is expected to grow by 42.64% 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 13.87% on average per year.

Understanding NASDAQ:NBIX's Valuation Score

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 7 out of 10:

• NBIX's Price/Earnings ratio is rather cheap when compared to the industry. NBIX is cheaper than 95.05% of the companies in the same industry.
• NBIX's Price/Forward Earnings ratio is rather cheap when compared to the industry. NBIX is cheaper than 95.56% of the companies in the same industry.
• NBIX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NBIX is cheaper than 95.39% of the companies in the same industry.
• NBIX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NBIX is cheaper than 95.39% of the companies in the same industry.
• The 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.
• A more expensive valuation may be justified as NBIX's earnings are expected to grow with 52.90% in the coming years.

Health Examination for 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 9.41. This indicates that NBIX is financially healthy and has little risk of bankruptcy at the moment.
• NBIX has a Altman-Z score of 9.41. This is amongst the best in the industry. NBIX outperforms 86.35% 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.

Analyzing Profitability Metrics

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 9:

• With an excellent Return On Assets value of 7.68%, NBIX belongs to the best of the industry, outperforming 96.76% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 11.19%, NBIX belongs to the top of the industry, outperforming 96.42% of the companies in the same industry.
• The Return On Invested Capital of NBIX (11.21%) is better than 96.93% of its industry peers.
• 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 96.93% of its industry peers.
• In the last couple of years the Profit Margin of NBIX has grown nicely.
• NBIX's Operating Margin of 20.92% is amongst the best of the industry. NBIX outperforms 97.27% of its industry peers.
• In the last couple of years the Operating Margin of NBIX has grown nicely.
• Looking at the Gross Margin, with a value of 97.90%, NBIX belongs to the top of the industry, outperforming 98.29% of the companies in the same industry.

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

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

Keep in mind

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.