Despite its impressive fundamentals, NASDAQ:NBIX remains undervalued.

Discover NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX), an undervalued stock highlighted by our stock screener. NASDAQ:NBIX showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Valuation Assessment of NASDAQ:NBIX

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:NBIX, the assigned 7 reflects its valuation:

• Based on the Price/Earnings ratio, NBIX is valued cheaper than 94.76% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of NBIX indicates a rather cheap valuation: NBIX is cheaper than 94.24% of the companies listed in the same industry.
• NBIX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NBIX is cheaper than 95.29% 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 97.91% of the companies in the same industry.
• 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 54.25% in the coming years. This may justify a more expensive valuation.

How do we evaluate the Profitability for 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:

• Looking at the Return On Assets, with a value of 10.65%, NBIX belongs to the top of the industry, outperforming 97.38% of the companies in the same industry.
• NBIX's Return On Equity of 15.49% is amongst the best of the industry. NBIX outperforms 96.86% of its industry peers.
• NBIX has a Return On Invested Capital of 12.56%. This is amongst the best in the industry. NBIX outperforms 96.86% of its industry peers.
• The last Return On Invested Capital (12.56%) for NBIX is above the 3 year average (9.89%), which is a sign of increasing profitability.
• NBIX has a Profit Margin of 18.65%. This is amongst the best in the industry. NBIX outperforms 97.56% of its industry peers.
• NBIX's Profit Margin has improved in the last couple of years.
• NBIX's Operating Margin of 23.73% is amongst the best of the industry. NBIX outperforms 97.38% of its industry peers.
• NBIX's Operating Margin has improved in the last couple of years.
• With an excellent Gross Margin value of 98.05%, NBIX belongs to the best of the industry, outperforming 98.25% of the companies in the same industry.

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:

• NBIX has an Altman-Z score of 8.62. This indicates that NBIX is financially healthy and has little risk of bankruptcy at the moment.
• NBIX has a better Altman-Z score (8.62) than 84.82% 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 Growth looks like for NASDAQ:NBIX

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:NBIX was assigned a score of 9 for growth:

• The Earnings Per Share has grown by an impressive 505.00% over the past year.
• Measured over the past years, NBIX shows a very strong growth in Earnings Per Share. The EPS has been growing by 70.09% on average per year.
• Looking at the last year, NBIX shows a very strong growth in Revenue. 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.
• 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 15.04% on average over the next years. This is quite good.

More Decent Value stocks can be found in our Decent Value screener.

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.