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In the world of growth stocks, NASDAQ:NBIX shines as a value proposition.

By Mill Chart

Last update: May 23, 2024

Consider NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX) as an affordable growth stock, identified by our stock screening tool. NASDAQ:NBIX is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.


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Deciphering NASDAQ:NBIX's Growth Rating

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:NBIX, the assigned 9 reflects its growth potential:

  • NBIX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 505.00%, 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.
  • Looking at the last year, NBIX shows a very strong growth in Revenue. The Revenue has grown by 23.99%.
  • 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 15.04% on average per year.

Understanding NASDAQ:NBIX's Valuation

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:NBIX scores a 7 out of 10:

  • 95.03% of the companies in the same industry are more expensive than NBIX, based on the Price/Earnings ratio.
  • Based on the Price/Forward Earnings ratio, NBIX is valued cheaper than 94.68% of the companies in the same industry.
  • 95.20% of the companies in the same industry are more expensive than NBIX, based on the Enterprise Value to EBITDA ratio.
  • 97.94% 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.
  • A more expensive valuation may be justified as NBIX's earnings are expected to grow with 52.90% in the coming years.

Looking at the Health

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:NBIX, the assigned 7 reflects its health status:

  • NBIX has an Altman-Z score of 9.09. This indicates that NBIX is financially healthy and has little risk of bankruptcy at the moment.
  • NBIX has a better Altman-Z score (9.09) than 85.25% of its industry peers.
  • 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 2.52 indicates that NBIX has no problem at all paying its short term obligations.
  • A Quick Ratio of 2.47 indicates that NBIX has no problem at all paying its short term obligations.

Assessing Profitability for 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's Return On Assets of 10.65% is amongst the best of the industry. NBIX outperforms 97.26% of its industry peers.
  • NBIX has a Return On Equity of 15.49%. This is amongst the best in the industry. NBIX outperforms 96.74% of its industry peers.
  • NBIX's Return On Invested Capital of 12.56% is amongst the best of the industry. NBIX outperforms 97.08% of its industry peers.
  • The last Return On Invested Capital (12.56%) for NBIX is above the 3 year average (9.89%), which is a sign of increasing profitability.
  • NBIX's Profit Margin of 18.65% is amongst the best of the industry. NBIX outperforms 97.60% of its industry peers.
  • In the last couple of years the Profit Margin of NBIX has grown nicely.
  • NBIX has a Operating Margin of 23.73%. This is amongst the best in the industry. NBIX outperforms 97.60% of its industry peers.
  • In the last couple of years the Operating Margin of NBIX has grown nicely.
  • The Gross Margin of NBIX (98.05%) is better than 97.94% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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

Disclaimer

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.

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NEUROCRINE BIOSCIENCES INC

NASDAQ:NBIX (6/20/2024, 4:20:01 PM)

After market: 134.07 0 (0%)

134.07

+3.21 (+2.45%)

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