NASDAQ:NBIX is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Jan 30, 2025

Consider NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX) as a top value stock, identified by our stock screening tool. NASDAQ:NBIX shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

A Closer Look at Valuation for 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 8 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 94.34% of the companies listed 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 93.63% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 91.29. NBIX is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, NBIX is valued cheaper than 95.58% 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 95.22% of the companies listed in the same industry.
NBIX's 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.

Understanding NASDAQ:NBIX's 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:

NBIX's Return On Assets of 10.92% is amongst the best of the industry. NBIX outperforms 96.46% of its industry peers.
With an excellent Return On Equity value of 14.19%, NBIX belongs to the best of the industry, outperforming 96.28% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.96%, NBIX belongs to the best of the industry, outperforming 96.99% 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 96.46% 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 97.17% of the companies in the same industry.
NBIX's Operating Margin has improved in the last couple of years.
NBIX's Gross Margin of 98.52% is amongst the best of the industry. NBIX outperforms 97.70% of its industry peers.

How We Gauge Health for NASDAQ:NBIX

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:NBIX has received a 8 out of 10:

An Altman-Z score of 12.92 indicates that NBIX is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 12.92, NBIX belongs to the best of the industry, outperforming 88.85% of the companies in the same industry.
NBIX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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.

A Closer Look at Growth for NASDAQ:NBIX

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:

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.
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.
Based on estimates for the next years, NBIX will show a very strong growth in Earnings Per Share. The EPS will grow by 47.17% on average per year.
Based on estimates for the next years, NBIX will show a quite strong growth in Revenue. The Revenue will grow by 17.34% on average per year.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

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.