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

Consider NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX) as an affordable growth stock, identified by our stock screening tool. NASDAQ:NBIX is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Evaluating Growth: 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:

• 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
• The Revenue has grown by 23.99% in the past year. This is a very strong growth!
• The Revenue has been growing by 33.13% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 44.72% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 15.24% on average over the next years. This is quite good.

Valuation Analysis for NASDAQ:NBIX

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:NBIX has achieved a 7 out of 10:

• Compared to the rest of the industry, the Price/Earnings ratio of NBIX indicates a rather cheap valuation: NBIX is cheaper than 94.94% of the companies listed in the same industry.
• Based on the Price/Forward Earnings ratio, NBIX is valued cheaply inside the industry as 94.24% of the companies are valued more expensively.
• 95.46% of the companies in the same industry are more expensive than NBIX, based on the Enterprise Value to EBITDA ratio.
• 97.73% of the companies in the same industry are more expensive than NBIX, based on the Price/Free Cash Flow ratio.
• 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.
• A more expensive valuation may be justified as NBIX's earnings are expected to grow with 54.25% in the coming years.

Analyzing Health Metrics

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:NBIX has received a 7 out of 10:

• An Altman-Z score of 9.03 indicates that NBIX is not in any danger for bankruptcy at the moment.
• NBIX has a Altman-Z score of 9.03. This is amongst the best in the industry. NBIX outperforms 85.51% 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.
• A Current Ratio of 2.52 indicates that NBIX has no problem at all paying its short term obligations.
• A Quick Ratio of 2.47 indicates that NBIX has no problem at all paying its short term obligations.

Profitability Examination for NASDAQ:NBIX

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:NBIX has earned a 9 out of 10:

• NBIX's Return On Assets of 10.65% is amongst the best of the industry. NBIX outperforms 97.73% of its industry peers.
• With an excellent Return On Equity value of 15.49%, NBIX belongs to the best of the industry, outperforming 97.21% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 12.56%, NBIX belongs to the top of the industry, outperforming 97.03% 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.
• The Profit Margin of NBIX (18.65%) is better than 97.56% of its industry peers.
• NBIX's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 23.73%, NBIX belongs to the top of the industry, outperforming 97.56% of the companies in the same industry.
• NBIX's Operating Margin has improved in the last couple of years.
• NBIX's Gross Margin of 98.05% is amongst the best of the industry. NBIX outperforms 98.08% of its industry peers.

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

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

Keep in mind

This article should in no way be interpreted as advice. 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.