While growth is established for NASDAQ:NBIX, the stock's valuation remains reasonable.

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.

Growth Insights: NASDAQ:NBIX

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:NBIX, the assigned 9 reflects its growth potential:

• 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.
• Looking at the last year, NBIX shows a very strong growth in Revenue. 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.
• NBIX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 44.96% yearly.
• Based on estimates for the next years, NBIX will show a quite strong growth in Revenue. The Revenue will grow by 16.53% on average per year.

Valuation Analysis for 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:

• NBIX's Price/Earnings ratio is rather cheap when compared to the industry. NBIX is cheaper than 94.48% of the companies in the same industry.
• NBIX's Price/Forward Earnings ratio is rather cheap when compared to the industry. NBIX is cheaper than 94.48% of the companies in the same industry.
• Based on the Enterprise Value to EBITDA ratio, NBIX is valued cheaply inside the industry as 95.73% of the companies are valued more expensively.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of NBIX indicates a rather cheap valuation: NBIX is cheaper than 95.02% 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 53.84% in the coming years.

Exploring NASDAQ:NBIX's Health

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 11.90 indicates that NBIX is not in any danger for bankruptcy at the moment.
• NBIX has a Altman-Z score of 11.90. This is amongst the best in the industry. NBIX outperforms 88.26% 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.
• 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.
• 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.

Looking at the Profitability

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:

• The Return On Assets of NBIX (10.92%) is better than 96.44% of its industry peers.
• The Return On Equity of NBIX (14.19%) is better than 96.44% of its industry peers.
• With an excellent Return On Invested Capital value of 13.96%, NBIX belongs to the best of the industry, outperforming 97.15% of the companies in the same industry.
• 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 96.62% of its industry peers.
• In the last couple of years the Profit Margin of NBIX has grown nicely.
• NBIX has a better Operating Margin (26.23%) than 97.33% of its industry peers.
• In the last couple of years the Operating Margin of NBIX has grown nicely.
• NBIX has a better Gross Margin (98.52%) than 97.69% of its industry peers.

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

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

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.