Looking for growth without the hefty price tag? Consider NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX).

Our stock screening tool has pinpointed NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX) as a growth stock that isn't overvalued. NBIX is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Assessing Growth Metrics for NBIX

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NBIX scores 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.
• Looking at the last year, NBIX shows a very strong growth in Revenue. 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.
• NBIX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.49% yearly.
• Based on estimates for the next years, NBIX will show a quite strong growth in Revenue. The Revenue will grow by 12.86% on average per year.

How We Gauge Valuation for NBIX

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NBIX, the assigned 7 reflects its valuation:

• NBIX's Price/Earnings ratio is rather cheap when compared to the industry. NBIX is cheaper than 94.71% of the companies in the same industry.
• Based on the Price/Forward Earnings ratio, NBIX is valued cheaper than 94.00% of the companies in the same industry.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NBIX indicates a rather cheap valuation: NBIX is cheaper than 96.65% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, NBIX is valued cheaply inside the industry as 95.77% of the companies are valued more expensively.
• 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.
• NBIX's earnings are expected to grow with 40.33% in the coming years. This may justify a more expensive valuation.

Health Assessment of NBIX

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NBIX has earned a 8 out of 10:

• NBIX has an Altman-Z score of 6.36. This indicates that NBIX is financially healthy and has little risk of bankruptcy at the moment.
• NBIX has a Altman-Z score of 6.36. This is amongst the best in the industry. NBIX outperforms 86.07% 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.
• A Quick Ratio of 3.28 indicates that NBIX has no problem at all paying its short term obligations.

Analyzing Profitability Metrics

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NBIX was assigned a score of 8 for profitability:

• With an excellent Return On Assets value of 9.18%, NBIX belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 13.18%, NBIX belongs to the top of the industry, outperforming 94.89% of the companies in the same industry.
• NBIX's Return On Invested Capital of 13.20% is amongst the best of the industry. NBIX outperforms 96.47% of its industry peers.
• The 3 year average ROIC (11.40%) for NBIX is below the current ROIC(13.20%), indicating increased profibility in the last year.
• With an excellent Profit Margin value of 14.49%, NBIX belongs to the best of the industry, outperforming 95.59% of the companies in the same industry.
• In the last couple of years the Profit Margin of NBIX has grown nicely.
• Looking at the Operating Margin, with a value of 24.75%, NBIX belongs to the top of the industry, outperforming 96.83% of the companies in the same industry.
• With an excellent Gross Margin value of 98.56%, NBIX belongs to the best of the industry, outperforming 97.35% of the companies in the same industry.

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.

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.