For those who appreciate growth without the sticker shock, NASDAQ:NBIX is worth considering.

Last update: Dec 3, 2024

Here's NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX) for you, a growth stock our stock screener believes is undervalued. NASDAQ:NBIX is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

What does the Growth looks like 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:

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.
NBIX shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.72%.
NBIX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 33.13% yearly.
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.

Evaluating Valuation: NASDAQ:NBIX

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:NBIX boasts a 7 out of 10:

Based on the Price/Earnings ratio, NBIX is valued cheaper than 94.89% of the companies in the same industry.
Based on the Price/Forward Earnings ratio, NBIX is valued cheaper than 95.41% of the companies in the same industry.
Based on the Enterprise Value to EBITDA ratio, NBIX is valued cheaply inside the industry as 96.12% 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 95.59% 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 53.23% in the coming years.

Understanding NASDAQ:NBIX's Health

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:

NBIX has an Altman-Z score of 11.08. This indicates that NBIX is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 11.08, NBIX belongs to the best of the industry, outperforming 85.71% 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 4.37 indicates that NBIX has no problem at all paying its short term obligations.
A Quick Ratio of 4.26 indicates that NBIX has no problem at all paying its short term obligations.

Evaluating Profitability: NASDAQ:NBIX

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:NBIX, the assigned 9 is a significant indicator of profitability:

The Return On Assets of NBIX (10.92%) is better than 96.83% of its industry peers.
Looking at the Return On Equity, with a value of 14.19%, NBIX belongs to the top of the industry, outperforming 96.65% of the companies in the same industry.
NBIX has a better Return On Invested Capital (13.96%) than 97.18% 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.
NBIX has a Profit Margin of 17.21%. This is amongst the best in the industry. NBIX outperforms 96.83% 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 26.23%, NBIX belongs to the best of the industry, outperforming 97.35% 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 97.71% of the companies in the same industry.

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

Our latest full fundamental report of NBIX contains the most current fundamental analsysis.

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.