NASDAQ:NBIX stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Nov 19, 2024

NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NASDAQ:NBIX showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

A Closer Look at Valuation for 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 8 out of 10:

NBIX's Price/Earnings ratio is rather cheap when compared to the industry. NBIX is cheaper than 95.01% of the companies 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.
When comparing the Price/Forward Earnings ratio of NBIX to the average of the S&P500 Index (23.50), we can say NBIX is valued slightly cheaper.
Based on the Enterprise Value to EBITDA ratio, NBIX is valued cheaper than 95.90% 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 95.72% 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.
NBIX has an outstanding profitability rating, which may justify a higher PE ratio.
NBIX's earnings are expected to grow with 54.33% in the coming years. This may justify a more expensive valuation.

What does the Profitability looks like 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 96.43% of the companies in the same industry.
NBIX has a better Return On Equity (14.19%) than 96.08% of its industry peers.
With an excellent Return On Invested Capital value of 13.96%, NBIX belongs to the best of the industry, outperforming 96.43% of the companies in the same industry.
The 3 year average ROIC (9.89%) for NBIX is below the current ROIC(13.96%), indicating increased profibility in the last year.
NBIX has a better Profit Margin (17.21%) than 96.43% of its industry peers.
In the last couple of years the Profit Margin of NBIX has grown nicely.
NBIX's Operating Margin of 26.23% is amongst the best of the industry. NBIX outperforms 96.79% 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 98.52%, NBIX belongs to the best of the industry, outperforming 97.86% of the companies in the same industry.

Health Analysis 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 8 for health provides valuable insights:

An Altman-Z score of 10.46 indicates that NBIX is not in any danger for bankruptcy at the moment.
NBIX has a better Altman-Z score (10.46) than 87.17% of its industry peers.
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 4.37 indicates that NBIX has no problem at all paying its short term obligations.
NBIX has a Quick Ratio of 4.26. This indicates that NBIX is financially healthy and has no problem in meeting its short term obligations.

A Closer Look at Growth for NASDAQ:NBIX

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:NBIX has received a 9 out of 10:

NBIX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 100.54%, which is quite impressive.
NBIX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 70.09% yearly.
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!
NBIX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 44.72% yearly.
NBIX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.24% yearly.

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Check the latest full fundamental report of NBIX for a complete fundamental analysis.

Disclaimer

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.