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

Our stock screening tool has pinpointed NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX) as an undervalued stock. NASDAQ:NBIX maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Deciphering NASDAQ:NBIX's Valuation Rating

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:

• Compared to the rest of the industry, the Price/Earnings ratio of NBIX indicates a rather cheap valuation: NBIX is cheaper than 94.76% of the companies listed in the same industry.
• Based on the Price/Forward Earnings ratio, NBIX is valued cheaply inside the industry as 93.53% of the companies are valued more expensively.
• Based on the Enterprise Value to EBITDA ratio, NBIX is valued cheaper than 96.15% 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 96.15% of the companies listed in the same industry.
• 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 40.83% in the coming years. This may justify a more expensive valuation.

Profitability Examination for NASDAQ:NBIX

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:NBIX has achieved a 8:

• With an excellent Return On Assets value of 9.18%, NBIX belongs to the best of the industry, outperforming 95.63% of the companies in the same industry.
• The Return On Equity of NBIX (13.18%) is better than 95.28% of its industry peers.
• The Return On Invested Capital of NBIX (13.20%) is better than 96.33% of its industry peers.
• The last Return On Invested Capital (13.20%) for NBIX is above the 3 year average (11.40%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 14.49%, NBIX belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
• NBIX's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 24.75%, NBIX belongs to the best of the industry, outperforming 96.85% of the companies in the same industry.
• NBIX has a better Gross Margin (98.56%) than 97.90% of its industry peers.

How do we evaluate the Health for NASDAQ:NBIX?

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:NBIX has achieved a 8 out of 10:

• NBIX has an Altman-Z score of 7.24. This indicates that NBIX is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 7.24, NBIX belongs to the top of the industry, outperforming 84.97% 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.
• NBIX has a Current Ratio of 3.40. This indicates that NBIX is financially healthy and has no problem in meeting its short term obligations.
• NBIX has a Quick Ratio of 3.28. This indicates that NBIX is financially healthy and has no problem in meeting its short term obligations.

Understanding NASDAQ:NBIX's Growth

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:

• The Earnings Per Share has grown by an impressive 35.95% over the past year.
• Measured over the past years, NBIX shows a very strong growth in Earnings Per Share. The EPS has been growing by 58.39% on average per year.
• NBIX shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.81%.
• NBIX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.48% yearly.
• The Earnings Per Share is expected to grow by 41.25% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 13.54% on average over the next years. This is quite good.

More Decent Value stocks can be found in our Decent Value screener.

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

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.