NEUROCRINE BIOSCIENCES INC (NBIX)
US64125C1099 - Common Stock
We assign a fundamental rating of 8 out of 10 to NBIX. NBIX was compared to 566 industry peers in the Biotechnology industry. NBIX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NBIX is growing strongly while it also seems undervalued. This is an interesting combination These ratings could make NBIX a good candidate for value and growth and quality investing.
1. Profitability
1.1 Basic Checks
NBIX had positive earnings in the past year.
In the past year NBIX had a positive cash flow from operations.
Each year in the past 5 years NBIX has been profitable.
NBIX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.26%, NBIX belongs to the top of the industry, outperforming 96.61% of the companies in the same industry.
NBIX has a Return On Equity of 13.52%. This is amongst the best in the industry. NBIX outperforms 96.08% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.81%, NBIX belongs to the top of the industry, outperforming 96.79% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NBIX is below the industry average of 13.89%.
The last Return On Invested Capital (13.81%) for NBIX is above the 3 year average (9.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.26% | ||
| ROE | 13.52% | ||
| ROIC | 13.81% |
ROA(3y)6.18%
ROA(5y)8.97%
ROE(3y)8.92%
ROE(5y)13.75%
ROIC(3y)9.89%
ROIC(5y)11.96%
1.3 Margins
The Profit Margin of NBIX (16.00%) is better than 96.61% of its industry peers.
NBIX's Profit Margin has improved in the last couple of years.
NBIX has a Operating Margin of 25.70%. This is amongst the best in the industry. NBIX outperforms 97.50% of its industry peers.
In the last couple of years the Operating Margin of NBIX has grown nicely.
NBIX has a Gross Margin of 98.28%. This is amongst the best in the industry. NBIX outperforms 97.68% of its industry peers.
NBIX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.7% | ||
| PM (TTM) | 16% | ||
| GM | 98.28% |
OM growth 3Y-12.58%
OM growth 5Y20.67%
PM growth 3Y-30.22%
PM growth 5Y23.12%
GM growth 3Y-0.38%
GM growth 5Y-0.21%
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
NBIX has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NBIX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 10.47 indicates that NBIX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.47, NBIX belongs to the top of the industry, outperforming 85.03% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 10.47 |
ROIC/WACC1.27
WACC10.85%
2.3 Liquidity
NBIX has a Current Ratio of 4.19. This indicates that NBIX is financially healthy and has no problem in meeting its short term obligations.
NBIX has a Current ratio of 4.19. This is comparable to the rest of the industry: NBIX outperforms 46.70% of its industry peers.
A Quick Ratio of 4.08 indicates that NBIX has no problem at all paying its short term obligations.
The Quick ratio of NBIX (4.08) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.19 | ||
| Quick Ratio | 4.08 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 91.33% 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 26.69%.
The Revenue has been growing by 33.13% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)91.33%
EPS 3Y23.01%
EPS 5Y70.09%
EPS Q2Q%-33.68%
Revenue 1Y (TTM)26.69%
Revenue growth 3Y21.74%
Revenue growth 5Y33.13%
Sales Q2Q%30.37%
3.2 Future
The Earnings Per Share is expected to grow by 44.72% on average over the next years. This is a very strong growth
NBIX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.24% yearly.
EPS Next Y92.84%
EPS Next 2Y71.47%
EPS Next 3Y57.67%
EPS Next 5Y44.72%
Revenue Next Year23.35%
Revenue Next 2Y19.83%
Revenue Next 3Y19.03%
Revenue Next 5Y15.24%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 37.82, which means the current valuation is very expensive for NBIX.
Compared to the rest of the industry, the Price/Earnings ratio of NBIX indicates a rather cheap valuation: NBIX is cheaper than 95.19% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 30.84. NBIX is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 17.59 indicates a rather expensive valuation of NBIX.
Based on the Price/Forward Earnings ratio, NBIX is valued cheaper than 96.43% of the companies in the same industry.
NBIX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.82 | ||
| Fwd PE | 17.59 |
4.2 Price Multiples
95.90% of the companies in the same industry are more expensive than NBIX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, NBIX is valued cheaper than 96.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.56 | ||
| EV/EBITDA | 17.2 |
4.3 Compensation for Growth
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 57.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
PEG (5Y)0.54
EPS Next 2Y71.47%
EPS Next 3Y57.67%
5. Dividend
5.1 Amount
No dividends for NBIX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NEUROCRINE BIOSCIENCES INC
NASDAQ:NBIX (10/30/2024, 2:57:00 PM)
125.17
+8.98 (+7.73%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.64B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.82 | ||
| Fwd PE | 17.59 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
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SpS
BVpS
TBVpS
PEG (NY)0.41
PEG (5Y)0.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.26% | ||
| ROE | 13.52% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 25.7% | ||
| PM (TTM) | 16% | ||
| GM | 98.28% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.19 | ||
| Quick Ratio | 4.08 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)91.33%
EPS 3Y23.01%
EPS 5Y
EPS Q2Q%
EPS Next Y92.84%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)26.69%
Revenue growth 3Y21.74%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
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