NASDAQ:NBIX, a growth stock which is not overvalued.

NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX) has caught the eye of our stock screener as an affordable growth stock. NASDAQ:NBIX is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

Assessing Growth 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 505.00% 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
• Looking at the last year, NBIX shows a very strong growth in Revenue. The Revenue has grown by 23.99%.
• 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.
• Based on estimates for the next years, NBIX will show a very strong growth in Earnings Per Share. The EPS will grow by 44.72% on average per year.
• The Revenue is expected to grow by 15.24% on average over the next years. This is quite good.

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:

• 95.12% of the companies in the same industry are more expensive than NBIX, based on the Price/Earnings ratio.
• NBIX's Price/Forward Earnings ratio is rather cheap when compared to the industry. NBIX is cheaper than 94.43% of the companies in the same industry.
• Based on the Enterprise Value to EBITDA ratio, NBIX is valued cheaply inside the industry as 95.30% of the companies are valued more expensively.
• NBIX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NBIX is cheaper than 97.74% 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 54.25% in the coming years.

What does the Health looks like for NASDAQ:NBIX

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:NBIX, the assigned 7 reflects its health status:

• NBIX has an Altman-Z score of 9.47. This indicates that NBIX is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 9.47, NBIX belongs to the best of the industry, outperforming 84.15% of the companies in the same industry.
• 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.
• 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.

Profitability Analysis 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 97.56% of the companies in the same industry.
• The Return On Equity of NBIX (15.49%) is better than 97.21% of its industry peers.
• NBIX has a better Return On Invested Capital (12.56%) than 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.
• 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.
• NBIX's Operating Margin of 23.73% is amongst the best of the industry. NBIX outperforms 97.56% 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 98.08% of the companies in the same industry.

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

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.