Neurocrine Biosciences Inc (NASDAQ:NBIX) Presents an Affordable Growth Opportunity

Investors looking for growth chances at fair prices often use screening methods that find companies with good expansion possibilities that have not yet hit high price points. The "Affordable Growth" method aims at stocks showing strong growth paths while keeping good basic health and profit measures, all at prices that do not seem high. This system helps investors prevent paying too much for growth while still finding companies with notable expansion possibilities.

Neurocrine Biosciences Inc (NASDAQ:NBIX) offers an interesting example for affordable growth investing. The biotechnology firm works on creating treatments for neurological, neuroendocrine, and neuropsychiatric conditions, with a market collection that contains INGREZZA for tardive dyskinesia and a number of other FDA-approved drugs.

Growth Path

Neurocrine's growth profile is notable, receiving an 8 out of 10 growth score in ChartMill's basic review. The company shows both past strength and good future movement across important money measures:

• Income has increased by 18.42% over the last year and averages 24.48% yearly increase over recent years
• Earnings Per Share has shown impressive past increase at 58.39% on average each year
• Future EPS increase is estimated at 36.58% on average in coming years
• Income growth expectations stay good at 12.22% each year going forward

This steady growth pattern across different time periods gives assurance in the company's ability to maintain expansion, a key part for growth investors looking for companies with future potential rather than single events.

Valuation Review

With a valuation score of 6 out of 10, Neurocrine shows what seems to be a fair starting point for growth-focused investors. The valuation view has several good parts even with some mixed signs:

• The P/E ratio of 40.60 seems high in simple terms but looks good next to industry friends, with 92% of biotechnology firms trading at higher multiples
• Forward P/E of 20.74 is under the industry average and matches wider market valuations
• Enterprise Value to EBITDA and Price/Free Cash Flow ratios both place better than 93% of industry rivals
• The PEG ratio, which changes P/E for growth estimates, indicates suitable valuation considering expected expansion

For affordable growth plans, this valuation picture represents a good balance - not low by classic value measures, but fairly costed considering the growth path and industry setting.

Profit and Money Health

The company's good profit (8/10) and sound money health (7/10) give base support for the growth story. Neurocrine shows:

• Excellent profit margins higher than 93% of industry friends
• Good returns on assets (8.95%), equity (12.93%), and invested capital (10.85%)
• No existing debt, giving money flexibility
• Current and quick ratios above 3.0, showing strong short-term cash position
• Regular positive earnings and operating cash flow over several years

These features matter a lot for affordable growth investing because they lower the risk picture while helping continued expansion. Companies with good profit and clean balance sheets can pay for growth plans from inside and handle economic drops more successfully.

Investment Points

While the basic view seems good overall, investors should note that Neurocrine works in the competitive biotechnology field, where product creation cycles are lengthy and regulatory steps are present. The company's focus in neuroscience treatments represents both specialty chance and treatment area risk. Also, while valuation seems fair relative to growth possibilities, simple P/E multiples stay high compared to wider market averages.

The mix of good growth measures, fair valuation relative to that growth, and sound base money conditions makes Neurocrine Biosciences worth review for investors using affordable growth plans. The company's basic analysis report gives more detail into these score parts.

For investors curious about finding similar chances, our Affordable Growth screening results provide other companies meeting these needs.

Disclaimer: This article presents factual information based on basic review but does not form investment guidance or suggestions. Investors should do their own study and think about their personal money situations before making investment choices.