Despite its growth, NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX) remains within the realm of affordability.

Our stock screener has singled out NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX) as an attractive growth opportunity. NBIX is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

Growth Analysis for NBIX

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NBIX was assigned a score of 9 for growth:

• The Earnings Per Share has grown by an impressive 35.95% over the past year.
• The Earnings Per Share has been growing by 58.39% 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 24.81%.
• Measured over the past years, NBIX shows a very strong growth in Revenue. The Revenue has been growing by 24.48% on average per year.
• The Earnings Per Share is expected to grow by 38.49% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 12.91% on average over the next years. This is quite good.

ChartMill's Evaluation of 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. NBIX scores a 7 out of 10:

• 94.56% 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 93.51% of the companies in the same industry.
• 96.14% of the companies in the same industry are more expensive than NBIX, based on the Enterprise Value to EBITDA ratio.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of NBIX indicates a rather cheap valuation: NBIX is cheaper than 95.79% of the companies listed in the same industry.
• NBIX's 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.

Health Analysis for NBIX

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NBIX has earned a 8 out of 10:

• An Altman-Z score of 7.39 indicates that NBIX is not in any danger for bankruptcy at the moment.
• The Altman-Z score of NBIX (7.39) is better than 84.74% 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 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 NBIX's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NBIX, the assigned 8 is noteworthy for profitability:

• NBIX has a Return On Assets of 9.18%. This is amongst the best in the industry. NBIX outperforms 95.44% of its industry peers.
• NBIX has a Return On Equity of 13.18%. This is amongst the best in the industry. NBIX outperforms 95.09% of its industry peers.
• NBIX's Return On Invested Capital of 13.20% is amongst the best of the industry. NBIX outperforms 96.32% 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.
• NBIX has a better Profit Margin (14.49%) than 95.61% of its industry peers.
• 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 96.84% of the companies in the same industry.
• NBIX's Gross Margin of 98.56% is amongst the best of the industry. NBIX outperforms 98.07% of its industry peers.

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

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

Keep in mind

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.