Don't overlook NASDAQ:NBIX—a stock with solid growth prospects and a reasonable valuation.

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.

What does the Growth looks like for NASDAQ:NBIX

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 505.00%, 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 23.99%.
• NBIX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 33.13% yearly.
• The Earnings Per Share is expected to grow by 42.64% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 15.04% on average over the next years. This is quite good.

Deciphering NASDAQ:NBIX's Valuation Rating

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:

• 94.80% of the companies in the same industry are more expensive than NBIX, based on the Price/Earnings ratio.
• 94.11% of the companies in the same industry are more expensive than NBIX, based on the Price/Forward Earnings ratio.
• Based on the Enterprise Value to EBITDA ratio, NBIX is valued cheaply inside the industry as 95.32% of the companies are valued more expensively.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of NBIX indicates a rather cheap valuation: NBIX is cheaper than 97.92% of the companies listed in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• NBIX has an outstanding profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as NBIX's earnings are expected to grow with 53.33% in the coming years.

What does the Health looks like for NASDAQ:NBIX

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:NBIX, the assigned 7 for health provides valuable insights:

• An Altman-Z score of 8.83 indicates that NBIX is not in any danger for bankruptcy at the moment.
• NBIX's Altman-Z score of 8.83 is amongst the best of the industry. NBIX outperforms 83.88% of its industry peers.
• 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 2.52. This indicates that NBIX is financially healthy and has no problem in meeting its short term obligations.
• NBIX has a Quick Ratio of 2.47. This indicates that NBIX is financially healthy and has no problem in meeting its short term obligations.

What does the Profitability looks like for NASDAQ:NBIX

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:NBIX, the assigned 9 is a significant indicator of profitability:

• The Return On Assets of NBIX (10.65%) is better than 97.23% of its industry peers.
• The Return On Equity of NBIX (15.49%) is better than 96.88% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 12.56%, NBIX belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
• The 3 year average ROIC (9.89%) for NBIX is below the current ROIC(12.56%), indicating increased profibility in the last year.
• NBIX has a better Profit Margin (18.65%) than 97.57% of its industry peers.
• In the last couple of years the Profit Margin of NBIX has grown nicely.
• NBIX has a Operating Margin of 23.73%. This is amongst the best in the industry. NBIX outperforms 97.40% of its industry peers.
• In the last couple of years the Operating Margin of NBIX has grown nicely.
• With an excellent Gross Margin value of 98.05%, NBIX belongs to the best of the industry, outperforming 98.27% of the companies in the same industry.

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

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

Keep in mind

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.