NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX) - A Strong Growth Stock with Reasonable Valuation

NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX) was identified as an affordable growth stock by our stock screener. The company, which focuses on neuroscience-based treatments, shows strong growth potential while maintaining solid profitability and financial health. Its valuation, though not cheap, appears reasonable relative to industry peers.

Growth Prospects

• Revenue Growth: Over the past year, revenue increased by 21.73%, with a five-year average annual growth of 24.48%.
• Earnings Expansion: Despite a recent dip in EPS (-18.73% last year), the long-term EPS growth stands at 58.39% annually.
• Future Expectations: Analysts project EPS growth of 35.48% and revenue growth of 11.62% per year moving forward.

Valuation Assessment

• P/E Ratio: At 43.64, NBIX appears expensive compared to the S&P 500 average (27.30), but it is cheaper than 92.64% of its biotechnology peers.
• Forward P/E: The forward P/E of 20.48 is in line with the broader market and suggests a more reasonable outlook.
• Enterprise Value/EBITDA: The company is priced more attractively than 94.79% of industry competitors based on this metric.

Profitability & Financial Health

• Strong Margins: NBIX boasts a 98.52% gross margin and a 20.78% operating margin, outperforming most peers.
• Solid Returns: ROA (8.29%) and ROE (12.06%) rank in the top 6% of the sector.
• No Debt: The company carries no debt, strengthening its financial stability.

For a deeper look at the fundamentals, review the full analysis of NBIX.

Our Affordable Growth screener lists more stocks with similar characteristics and is updated daily.

Disclaimer

This is not investing advice. The observations here are based on current data, but investors should conduct their own research before making decisions.