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

Last update: Aug 19, 2024

Our stock screener has spotted NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX) as a growth stock which is not overvalued. NASDAQ:NBIX is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Deciphering NASDAQ:NBIX's Growth Rating

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 91.33% 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 26.69%.
The Revenue has been growing by 33.13% on average over the past years. This is a very strong growth!
NBIX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 44.72% yearly.
Based on estimates for the next years, NBIX will show a quite strong growth in Revenue. The Revenue will grow by 15.24% on average per year.

Valuation Assessment of NASDAQ:NBIX

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:

Based on the Price/Earnings ratio, NBIX is valued cheaply inside the industry as 95.61% of the companies are valued more expensively.
94.38% of the companies in the same industry are more expensive than NBIX, based on the Price/Forward Earnings ratio.
95.43% of the companies in the same industry are more expensive than NBIX, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NBIX indicates a rather cheap valuation: NBIX is cheaper than 96.84% of the companies listed 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.
NBIX has an outstanding profitability rating, which may justify a higher PE ratio.
NBIX's earnings are expected to grow with 54.09% in the coming years. This may justify a more expensive valuation.

A Closer Look at Health for NASDAQ:NBIX

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:NBIX scores a 8 out of 10:

An Altman-Z score of 12.63 indicates that NBIX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 12.63, NBIX belongs to the top of the industry, outperforming 89.28% of the companies in the same industry.
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 4.19 indicates that NBIX has no problem at all paying its short term obligations.
A Quick Ratio of 4.08 indicates that NBIX has no problem at all paying its short term obligations.

Profitability Insights: 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:

NBIX has a better Return On Assets (10.26%) than 97.36% of its industry peers.
With an excellent Return On Equity value of 13.52%, NBIX belongs to the best of the industry, outperforming 96.84% of the companies in the same industry.
NBIX has a Return On Invested Capital of 13.81%. This is amongst the best in the industry. NBIX outperforms 97.19% of its industry peers.
The 3 year average ROIC (9.89%) for NBIX is below the current ROIC(13.81%), indicating increased profibility in the last year.
NBIX's Profit Margin of 16.00% is amongst the best of the industry. NBIX outperforms 97.54% of its industry peers.
In the last couple of years the Profit Margin of NBIX has grown nicely.
With an excellent Operating Margin value of 25.70%, NBIX belongs to the best of the industry, outperforming 98.07% of the companies in the same industry.
NBIX's Operating Margin has improved in the last couple of years.
NBIX has a better Gross Margin (98.28%) than 97.89% 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 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.