NEUROCRINE BIOSCIENCES INC (NBIX) Stock Fundamental Analysis
NASDAQ:NBIX - Nasdaq - US64125C1099 - Common Stock - Currency: USD
Overall NBIX gets a fundamental rating of 7 out of 10. We evaluated NBIX against 555 industry peers in the Biotechnology industry. NBIX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NBIX is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make NBIX a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
NBIX had positive earnings in the past year.
NBIX had a positive operating cash flow in the past year.
In the past 5 years NBIX has always been profitable.
In the past 5 years NBIX always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 8.29%, NBIX belongs to the best of the industry, outperforming 94.23% of the companies in the same industry.
NBIX has a Return On Equity of 12.06%. This is amongst the best in the industry. NBIX outperforms 94.41% of its industry peers.
NBIX has a Return On Invested Capital of 11.52%. This is amongst the best in the industry. NBIX outperforms 95.86% of its industry peers.
NBIX had an Average Return On Invested Capital over the past 3 years of 11.40%. This is below the industry average of 14.78%.
The last Return On Invested Capital (11.52%) for NBIX is above the 3 year average (11.40%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.29% | ||
| ROE | 12.06% | ||
| ROIC | 11.52% |
ROA(3y)7.79%
ROA(5y)10.24%
ROE(3y)11.14%
ROE(5y)15.22%
ROIC(3y)11.4%
ROIC(5y)11.57%
1.3 Margins
Looking at the Profit Margin, with a value of 12.68%, NBIX belongs to the top of the industry, outperforming 93.51% of the companies in the same industry.
NBIX's Profit Margin has improved in the last couple of years.
NBIX has a better Operating Margin (20.78%) than 95.68% of its industry peers.
NBIX's Operating Margin has declined in the last couple of years.
NBIX's Gross Margin of 98.52% is amongst the best of the industry. NBIX outperforms 98.20% of its industry peers.
In the last couple of years the Gross Margin of NBIX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.78% | ||
| PM (TTM) | 12.68% | ||
| GM | 98.52% |
OM growth 3Y10.53%
OM growth 5Y-2.95%
PM growth 3Y22.39%
PM growth 5Y25.28%
GM growth 3Y-0.06%
GM growth 5Y-0.1%
2. Health
2.1 Basic Checks
NBIX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, NBIX has more shares outstanding
Compared to 5 years ago, NBIX has more shares outstanding
NBIX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
NBIX has an Altman-Z score of 8.06. This indicates that NBIX is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 8.06, NBIX belongs to the best of the industry, outperforming 83.96% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 8.06 |
ROIC/WACC1.3
WACC8.88%
2.3 Liquidity
A Current Ratio of 3.13 indicates that NBIX has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.13, NBIX is doing worse than 64.14% of the companies in the same industry.
A Quick Ratio of 3.02 indicates that NBIX has no problem at all paying its short term obligations.
NBIX's Quick ratio of 3.02 is on the low side compared to the rest of the industry. NBIX is outperformed by 63.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 3.02 |
3. Growth
3.1 Past
NBIX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.73%.
NBIX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 58.39% yearly.
Looking at the last year, NBIX shows a very strong growth in Revenue. The Revenue has grown by 21.73%.
NBIX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.48% yearly.
EPS 1Y (TTM)-18.73%
EPS 3Y35.58%
EPS 5Y58.39%
EPS Q2Q%-80.95%
Revenue 1Y (TTM)21.73%
Revenue growth 3Y27.61%
Revenue growth 5Y24.48%
Sales Q2Q%11.12%
3.2 Future
Based on estimates for the next years, NBIX will show a very strong growth in Earnings Per Share. The EPS will grow by 35.48% on average per year.
NBIX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.62% yearly.
EPS Next Y21.77%
EPS Next 2Y38.23%
EPS Next 3Y37.33%
EPS Next 5Y35.48%
Revenue Next Year14.22%
Revenue Next 2Y14.65%
Revenue Next 3Y13.7%
Revenue Next 5Y11.62%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 43.39, which means the current valuation is very expensive for NBIX.
Based on the Price/Earnings ratio, NBIX is valued cheaper than 92.61% of the companies in the same industry.
NBIX is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.36 indicates a rather expensive valuation of NBIX.
Based on the Price/Forward Earnings ratio, NBIX is valued cheaply inside the industry as 92.25% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, NBIX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.39 | ||
| Fwd PE | 20.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NBIX indicates a rather cheap valuation: NBIX is cheaper than 94.59% of the companies listed in the same industry.
93.87% of the companies in the same industry are more expensive than NBIX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.74 | ||
| EV/EBITDA | 20.71 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 37.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.99
PEG (5Y)0.74
EPS Next 2Y38.23%
EPS Next 3Y37.33%
5. Dividend
5.1 Amount
No dividends for NBIX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
128
+2.31 (+1.84%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners97.31%
Inst Owner Change0.16%
Ins Owners1.02%
Ins Owner Change2.51%
Market Cap12.67B
Analysts83.75
Price Target160.68 (25.53%)
Short Float %3.61%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-61.4%
Min EPS beat(2)-85.62%
Max EPS beat(2)-37.18%
EPS beat(4)0
Avg EPS beat(4)-45.39%
Min EPS beat(4)-85.62%
Max EPS beat(4)-17.35%
EPS beat(8)2
Avg EPS beat(8)-26.8%
EPS beat(12)2
Avg EPS beat(12)-90.12%
EPS beat(16)3
Avg EPS beat(16)-79.13%
Revenue beat(2)0
Avg Revenue beat(2)-1.15%
Min Revenue beat(2)-2.16%
Max Revenue beat(2)-0.14%
Revenue beat(4)2
Avg Revenue beat(4)1.31%
Min Revenue beat(4)-2.16%
Max Revenue beat(4)5.99%
Revenue beat(8)3
Avg Revenue beat(8)0.56%
Revenue beat(12)6
Avg Revenue beat(12)1.13%
Revenue beat(16)8
Avg Revenue beat(16)0.68%
PT rev (1m)1.14%
PT rev (3m)-4.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.82%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-10.23%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)0.65%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.39 | ||
| Fwd PE | 20.36 | ||
| P/S | 5.25 | ||
| P/FCF | 25.74 | ||
| P/OCF | 23.91 | ||
| P/B | 5 | ||
| P/tB | 5.07 | ||
| EV/EBITDA | 20.71 |
EPS(TTM)2.95
EY2.3%
EPS(NY)6.29
Fwd EY4.91%
FCF(TTM)4.97
FCFY3.89%
OCF(TTM)5.35
OCFY4.18%
SpS24.38
BVpS25.62
TBVpS25.25
PEG (NY)1.99
PEG (5Y)0.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.29% | ||
| ROE | 12.06% | ||
| ROCE | 15.84% | ||
| ROIC | 11.52% | ||
| ROICexc | 16.41% | ||
| ROICexgc | 16.69% | ||
| OM | 20.78% | ||
| PM (TTM) | 12.68% | ||
| GM | 98.52% | ||
| FCFM | 20.4% |
ROA(3y)7.79%
ROA(5y)10.24%
ROE(3y)11.14%
ROE(5y)15.22%
ROIC(3y)11.4%
ROIC(5y)11.57%
ROICexc(3y)30.35%
ROICexc(5y)27.29%
ROICexgc(3y)31.58%
ROICexgc(5y)28.03%
ROCE(3y)15.68%
ROCE(5y)15.92%
ROICexcg growth 3Y35.59%
ROICexcg growth 5Y-0.37%
ROICexc growth 3Y34.3%
ROICexc growth 5Y-0.94%
OM growth 3Y10.53%
OM growth 5Y-2.95%
PM growth 3Y22.39%
PM growth 5Y25.28%
GM growth 3Y-0.06%
GM growth 5Y-0.1%
F-Score8
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 132.28% | ||
| Cap/Sales | 1.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 100% | ||
| Profit Quality | 160.96% | ||
| Current Ratio | 3.13 | ||
| Quick Ratio | 3.02 | ||
| Altman-Z | 8.06 |
F-Score8
WACC8.88%
ROIC/WACC1.3
Cap/Depr(3y)126.53%
Cap/Depr(5y)144.2%
Cap/Sales(3y)1.41%
Cap/Sales(5y)1.47%
Profit Quality(3y)172.36%
Profit Quality(5y)166.13%
High Growth Momentum
Growth
EPS 1Y (TTM)-18.73%
EPS 3Y35.58%
EPS 5Y58.39%
EPS Q2Q%-80.95%
EPS Next Y21.77%
EPS Next 2Y38.23%
EPS Next 3Y37.33%
EPS Next 5Y35.48%
Revenue 1Y (TTM)21.73%
Revenue growth 3Y27.61%
Revenue growth 5Y24.48%
Sales Q2Q%11.12%
Revenue Next Year14.22%
Revenue Next 2Y14.65%
Revenue Next 3Y13.7%
Revenue Next 5Y11.62%
EBIT growth 1Y6.59%
EBIT growth 3Y41.04%
EBIT growth 5Y20.8%
EBIT Next Year-5.36%
EBIT Next 3Y24.51%
EBIT Next 5Y20.43%
FCF growth 1Y107.42%
FCF growth 3Y33.71%
FCF growth 5Y32.31%
OCF growth 1Y108.05%
OCF growth 3Y32.41%
OCF growth 5Y31.38%