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For those who appreciate growth without the sticker shock, NASDAQ:NBIX is worth considering.

By Mill Chart

Last update: Apr 10, 2024

NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX) has caught the eye of our stock screener as an affordable growth stock. NASDAQ:NBIX is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

Growth Assessment of NASDAQ:NBIX

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:NBIX has achieved a 9 out of 10:

  • NBIX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 58.17%, which is quite impressive.
  • NBIX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 70.09% yearly.
  • The Revenue has grown by 26.76% in the past year. This is a very strong growth!
  • 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.
  • The Earnings Per Share is expected to grow by 42.64% on average over the next years. This is a very strong growth
  • Based on estimates for the next years, NBIX will show a quite strong growth in Revenue. The Revenue will grow by 13.87% on average per year.

Looking at the Valuation

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:NBIX has received a 7 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 94.87% of the companies listed in the same industry.
  • Based on the Price/Forward Earnings ratio, NBIX is valued cheaply inside the industry as 95.38% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NBIX indicates a rather cheap valuation: NBIX is cheaper than 95.21% of the companies listed in the same industry.
  • 95.56% 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.
  • The excellent profitability rating of NBIX may justify a higher PE ratio.
  • NBIX's earnings are expected to grow with 53.13% in the coming years. This may justify a more expensive valuation.

A Closer Look at Health for NASDAQ:NBIX

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:NBIX, the assigned 7 for health provides valuable insights:

  • An Altman-Z score of 9.40 indicates that NBIX is not in any danger for bankruptcy at the moment.
  • NBIX has a better Altman-Z score (9.40) than 85.13% 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 2.45. This indicates that NBIX is financially healthy and has no problem in meeting its short term obligations.
  • A Quick Ratio of 2.40 indicates that NBIX has no problem at all paying its short term obligations.

Profitability Insights: NASDAQ:NBIX

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:NBIX has earned a 9 out of 10:

  • With an excellent Return On Assets value of 7.68%, NBIX belongs to the best of the industry, outperforming 96.75% of the companies in the same industry.
  • NBIX has a Return On Equity of 11.19%. This is amongst the best in the industry. NBIX outperforms 96.41% of its industry peers.
  • The Return On Invested Capital of NBIX (11.21%) is better than 96.92% of its industry peers.
  • The 3 year average ROIC (9.89%) for NBIX is below the current ROIC(11.21%), indicating increased profibility in the last year.
  • NBIX has a Profit Margin of 13.23%. This is amongst the best in the industry. NBIX outperforms 96.92% of its industry peers.
  • In the last couple of years the Profit Margin of NBIX has grown nicely.
  • NBIX has a Operating Margin of 20.92%. This is amongst the best in the industry. NBIX outperforms 97.09% of its industry peers.
  • NBIX's Operating Margin has improved in the last couple of years.
  • NBIX has a better Gross Margin (97.90%) than 98.12% 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.

Disclaimer

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.

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NEUROCRINE BIOSCIENCES INC

NASDAQ:NBIX (6/14/2024, 6:27:30 PM)

After market: 135.412 -0.04 (-0.03%)

135.45

-0.81 (-0.59%)

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