NASDAQ:NBIX stands out as a growth opportunity that won't break the bank.

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.

Understanding NASDAQ:NBIX's Growth Score

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 100.54% 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.
• The Revenue has grown by 25.72% 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
• 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

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 95.19% of the companies listed in the same industry.
• Based on the Price/Forward Earnings ratio, NBIX is valued cheaply inside the industry as 95.37% of the companies are valued more expensively.
• NBIX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NBIX is cheaper than 95.72% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of NBIX indicates a rather cheap valuation: NBIX is cheaper than 95.90% 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.
• 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 54.33% in the coming years.

Assessing Health Metrics for NASDAQ:NBIX

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:NBIX has achieved a 8 out of 10:

• NBIX has an Altman-Z score of 11.07. This indicates that NBIX is financially healthy and has little risk of bankruptcy at the moment.
• NBIX has a better Altman-Z score (11.07) than 84.67% 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 4.37. This indicates that NBIX is financially healthy and has no problem in meeting its short term obligations.
• A Quick Ratio of 4.26 indicates that NBIX has no problem at all paying its short term obligations.

Profitability Analysis for NASDAQ:NBIX

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:NBIX, the assigned 9 is noteworthy for profitability:

• Looking at the Return On Assets, with a value of 10.92%, NBIX belongs to the top of the industry, outperforming 96.61% of the companies in the same industry.
• With an excellent Return On Equity value of 14.19%, NBIX belongs to the best of the industry, outperforming 96.08% of the companies in the same industry.
• NBIX has a Return On Invested Capital of 13.96%. This is amongst the best in the industry. NBIX outperforms 96.43% of its industry peers.
• The last Return On Invested Capital (13.96%) for NBIX is above the 3 year average (9.89%), which is a sign of increasing profitability.
• The Profit Margin of NBIX (17.21%) is better than 96.61% of its industry peers.
• In the last couple of years the Profit Margin of NBIX has grown nicely.
• Looking at the Operating Margin, with a value of 26.23%, NBIX belongs to the top of the industry, outperforming 96.97% of the companies in the same industry.
• In the last couple of years the Operating Margin of NBIX has grown nicely.
• Looking at the Gross Margin, with a value of 98.52%, NBIX belongs to the top of the industry, outperforming 98.04% 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

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.