Neurocrine Biosciences Inc (NASDAQ:NBIX): An Affordable Growth Candidate in Biotechnology

Investors looking for growth chances at sensible prices often use screening methods that balance development possibility with financial steadiness. The "Affordable Growth" method focuses on companies showing solid growth paths while keeping good profitability and health measures, all without high valuation premiums. This process tries to find businesses that mix development ability with financial control, possibly providing lasting returns without the high valuations often linked to strong-growth stories.

Neurocrine Biosciences Inc (NASDAQ:NBIX) appears as an interesting candidate through this screening view, especially when examined using ChartMill's fundamental evaluation structure. The company's full fundamental analysis report shows a balanced profile that fits well with affordable growth standards.

Growth Path and Development Possibility

Neurocrine's growth story is notable, receiving an 8/10 rating in ChartMill's evaluation. The company shows solid development in several areas:

• Revenue has increased by 18.42% over the last year, with a notable five-year average growth rate of 24.48%
• Earnings per share have risen by 58.39% each year over recent years, although the last year showed a smaller 2.11% increase
• Future estimates point to expected EPS growth of 36.54% and revenue growth of 12.21% per year

This solid growth profile is important for the affordable growth plan, as continued development pushes future earnings possibility without needing investors to pay high prices for current outcomes. The company's neuroscience concentration places it well in a specific pharmaceutical area with constant demand.

Valuation Evaluation

With a valuation rating of 6/10, Neurocrine presents a noteworthy case where standard measures tell different stories:

• The P/E ratio of 43.38 seems high next to the S&P 500 average of 27.41
• However, inside the biotechnology industry where average P/E ratios are above 64, Neurocrine trades at a notable discount to similar companies
• More interesting are the enterprise value to EBITDA and price to free cash flow ratios, where the company is less expensive than about 93% of industry rivals
• The forward P/E ratio of 22.29 matches closely with the wider market average

This valuation picture supports the affordable growth idea by showing that while some measures seem high alone, the company's industry setting and growth prospects explain its price. The PEG ratio, which includes growth expectations, suggests acceptable valuation compensation.

Financial Health and Profitability

The company's financial base improves its affordable growth standing significantly:

• Profitability gets a strong 8/10, with return on assets (8.95%), return on equity (12.93%), and return on invested capital (10.85%) all placed in the top tiers industry-wide
• Operating margins of 19.89% and profit margins of 13.88% show effective operations
• Financial health receives a good 7/10, having no outstanding debt and solid liquidity ratios
• The Altman-Z score of 8.77 shows very low bankruptcy risk

These health and profitability measures provide the steadiness required for lasting growth investing. Companies with solid financial bases can handle market changes while still putting money into development chances, making them more dependable options for long-term growth plans.

Investment Points

While the overall profile supports the affordable growth idea, investors should be aware of several factors. The company works in the changeable biotechnology sector, where regulatory events and clinical trial results can greatly affect performance. Also, while current growth rates are notable, the analysis shows some slowing in future development expectations compared to past performance.

The mix of solid growth measures, acceptable industry-relative valuation, and strong financial health makes Neurocrine Biosciences relevant to watch for investors using growth at sensible price plans. The company's fundamental report gives more detail into these traits and their meanings for investment thought.

For investors curious about finding similar chances, the Affordable Growth screen that found Neurocrine Biosciences can provide other candidates meeting these balanced standards. The screening process continues to find companies showing this mix of growth possibility and financial control.

Disclaimer: This analysis is based on fundamental data and screening processes for informational purposes only. It does not form investment advice, recommendation, or support of any security. Investors should do their own research and talk with financial advisors before making investment choices. Past performance does not ensure future results, and all investments have risk including possible loss of principal.