NASDAQ:NBIX: good value for what you're paying.

Last update: Jan 3, 2025

Uncover the potential of NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX) as our stock screener's choice for an undervalued stock. NASDAQ:NBIX maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Valuation Assessment of NASDAQ:NBIX

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:NBIX, the assigned 7 reflects its valuation:

NBIX's Price/Earnings ratio is rather cheap when compared to the industry. NBIX is cheaper than 94.43% of the companies in the same industry.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NBIX indicates a rather cheap valuation: NBIX is cheaper than 94.25% of the companies listed in the same industry.
Based on the Enterprise Value to EBITDA ratio, NBIX is valued cheaply inside the industry as 95.51% of the companies are valued more expensively.
94.97% of the companies in the same industry are more expensive than NBIX, based on the Price/Free Cash Flow ratio.
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 53.84% in the coming years. This may justify a more expensive valuation.

Profitability Assessment of 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 (10.92%) than 96.41% of its industry peers.
NBIX's Return On Equity of 14.19% is amongst the best of the industry. NBIX outperforms 96.23% of its industry peers.
NBIX has a better Return On Invested Capital (13.96%) than 96.95% of its industry peers.
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 Profit Margin of 17.21%. This is amongst the best in the industry. NBIX outperforms 96.41% of its industry peers.
NBIX's Profit Margin has improved in the last couple of years.
NBIX has a Operating Margin of 26.23%. This is amongst the best in the industry. NBIX outperforms 97.13% of its industry peers.
NBIX's Operating Margin has improved in the last couple of years.
NBIX has a Gross Margin of 98.52%. This is amongst the best in the industry. NBIX outperforms 97.67% of its industry peers.

Assessing Health Metrics for NASDAQ:NBIX

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:NBIX has earned a 8 out of 10:

An Altman-Z score of 11.97 indicates that NBIX is not in any danger for bankruptcy at the moment.
The Altman-Z score of NBIX (11.97) is better than 87.97% 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.
A Quick Ratio of 4.26 indicates that NBIX has no problem at all paying its short term obligations.

How We Gauge 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:

The Earnings Per Share has grown by an impressive 100.54% over the past year.
The Earnings Per Share has been growing by 70.09% on average over the past years. This is a very strong growth
NBIX shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.72%.
Measured over the past years, NBIX shows a very strong growth in Revenue. The Revenue has been growing by 33.13% on average per year.
NBIX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 44.96% yearly.
The Revenue is expected to grow by 16.53% on average over the next years. This is quite good.

More Decent Value stocks can be found in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of NBIX

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.