NEUROCRINE BIOSCIENCES INC (NBIX) Stock Fundamental Analysis
NASDAQ:NBIX - Nasdaq - US64125C1099 - Common Stock - Currency: USD
NBIX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 558 industry peers in the Biotechnology industry. NBIX gets an excellent profitability rating and is at the same time showing great financial health properties. NBIX is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make NBIX a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year NBIX was profitable.
NBIX had a positive operating cash flow in the past year.
In the past 5 years NBIX has always been profitable.
NBIX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NBIX has a better Return On Assets (8.29%) than 94.27% of its industry peers.
NBIX's Return On Equity of 12.06% is amongst the best of the industry. NBIX outperforms 94.44% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.52%, NBIX belongs to the top of the industry, outperforming 95.88% of the companies in the same industry.
NBIX had an Average Return On Invested Capital over the past 3 years of 11.40%. This is below the industry average of 14.78%.
The last Return On Invested Capital (11.52%) for NBIX is above the 3 year average (11.40%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.29% | ||
| ROE | 12.06% | ||
| ROIC | 11.52% |
ROA(3y)7.79%
ROA(5y)10.24%
ROE(3y)11.14%
ROE(5y)15.22%
ROIC(3y)11.4%
ROIC(5y)11.57%
1.3 Margins
NBIX has a Profit Margin of 12.68%. This is amongst the best in the industry. NBIX outperforms 93.55% of its industry peers.
In the last couple of years the Profit Margin of NBIX has grown nicely.
Looking at the Operating Margin, with a value of 20.78%, NBIX belongs to the top of the industry, outperforming 95.70% of the companies in the same industry.
In the last couple of years the Operating Margin of NBIX has declined.
Looking at the Gross Margin, with a value of 98.52%, NBIX belongs to the top of the industry, outperforming 98.21% of the companies in the same industry.
NBIX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.78% | ||
| PM (TTM) | 12.68% | ||
| GM | 98.52% |
OM growth 3Y10.53%
OM growth 5Y-2.95%
PM growth 3Y22.39%
PM growth 5Y25.28%
GM growth 3Y-0.06%
GM growth 5Y-0.1%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NBIX is creating some value.
Compared to 1 year ago, NBIX has more shares outstanding
NBIX has more shares outstanding than it did 5 years ago.
NBIX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
NBIX has an Altman-Z score of 7.81. This indicates that NBIX is financially healthy and has little risk of bankruptcy at the moment.
NBIX's Altman-Z score of 7.81 is amongst the best of the industry. NBIX outperforms 84.41% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 7.81 |
ROIC/WACC1.22
WACC9.44%
2.3 Liquidity
NBIX has a Current Ratio of 3.13. This indicates that NBIX is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 3.13, NBIX is not doing good in the industry: 64.34% of the companies in the same industry are doing better.
NBIX has a Quick Ratio of 3.02. This indicates that NBIX is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of NBIX (3.02) is worse than 63.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 3.02 |
3. Growth
3.1 Past
NBIX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.73%.
The Earnings Per Share has been growing by 58.39% on average over the past years. This is a very strong growth
Looking at the last year, NBIX shows a very strong growth in Revenue. The Revenue has grown by 21.73%.
The Revenue has been growing by 24.48% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-18.73%
EPS 3Y35.58%
EPS 5Y58.39%
EPS Q2Q%-80.95%
Revenue 1Y (TTM)21.73%
Revenue growth 3Y27.61%
Revenue growth 5Y24.48%
Sales Q2Q%11.12%
3.2 Future
The Earnings Per Share is expected to grow by 38.15% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 12.63% on average over the next years. This is quite good.
EPS Next Y21.88%
EPS Next 2Y39.7%
EPS Next 3Y36.98%
EPS Next 5Y38.15%
Revenue Next Year13.93%
Revenue Next 2Y14.43%
Revenue Next 3Y13.7%
Revenue Next 5Y12.63%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 41.70, NBIX can be considered very expensive at the moment.
92.47% of the companies in the same industry are more expensive than NBIX, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of NBIX to the average of the S&P500 Index (26.25), we can say NBIX is valued expensively.
A Price/Forward Earnings ratio of 19.16 indicates a rather expensive valuation of NBIX.
NBIX's Price/Forward Earnings ratio is rather cheap when compared to the industry. NBIX is cheaper than 92.29% of the companies in the same industry.
NBIX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.7 | ||
| Fwd PE | 19.16 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NBIX indicates a rather cheap valuation: NBIX is cheaper than 94.44% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NBIX indicates a rather cheap valuation: NBIX is cheaper than 94.09% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.74 | ||
| EV/EBITDA | 19.78 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NBIX does not grow enough to justify the current Price/Earnings ratio.
NBIX has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as NBIX's earnings are expected to grow with 36.98% in the coming years.
PEG (NY)1.91
PEG (5Y)0.71
EPS Next 2Y39.7%
EPS Next 3Y36.98%
5. Dividend
5.1 Amount
No dividends for NBIX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
123.02
-0.64 (-0.52%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners96.99%
Inst Owner Change0.16%
Ins Owners1%
Ins Owner Change2.49%
Market Cap12.18B
Analysts83.13
Price Target158.86 (29.13%)
Short Float %4.63%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-61.4%
Min EPS beat(2)-85.62%
Max EPS beat(2)-37.18%
EPS beat(4)0
Avg EPS beat(4)-45.39%
Min EPS beat(4)-85.62%
Max EPS beat(4)-17.35%
EPS beat(8)2
Avg EPS beat(8)-26.8%
EPS beat(12)2
Avg EPS beat(12)-90.12%
EPS beat(16)3
Avg EPS beat(16)-79.13%
Revenue beat(2)0
Avg Revenue beat(2)-1.15%
Min Revenue beat(2)-2.16%
Max Revenue beat(2)-0.14%
Revenue beat(4)2
Avg Revenue beat(4)1.31%
Min Revenue beat(4)-2.16%
Max Revenue beat(4)5.99%
Revenue beat(8)3
Avg Revenue beat(8)0.56%
Revenue beat(12)6
Avg Revenue beat(12)1.13%
Revenue beat(16)8
Avg Revenue beat(16)0.68%
PT rev (1m)0.56%
PT rev (3m)-6.28%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-6.3%
EPS NY rev (1m)-4.31%
EPS NY rev (3m)-10.16%
Revenue NQ rev (1m)0.8%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.7 | ||
| Fwd PE | 19.16 | ||
| P/S | 5.05 | ||
| P/FCF | 24.74 | ||
| P/OCF | 22.98 | ||
| P/B | 4.8 | ||
| P/tB | 4.87 | ||
| EV/EBITDA | 19.78 |
EPS(TTM)2.95
EY2.4%
EPS(NY)6.42
Fwd EY5.22%
FCF(TTM)4.97
FCFY4.04%
OCF(TTM)5.35
OCFY4.35%
SpS24.38
BVpS25.62
TBVpS25.25
PEG (NY)1.91
PEG (5Y)0.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.29% | ||
| ROE | 12.06% | ||
| ROCE | 15.84% | ||
| ROIC | 11.52% | ||
| ROICexc | 16.41% | ||
| ROICexgc | 16.69% | ||
| OM | 20.78% | ||
| PM (TTM) | 12.68% | ||
| GM | 98.52% | ||
| FCFM | 20.4% |
ROA(3y)7.79%
ROA(5y)10.24%
ROE(3y)11.14%
ROE(5y)15.22%
ROIC(3y)11.4%
ROIC(5y)11.57%
ROICexc(3y)30.35%
ROICexc(5y)27.29%
ROICexgc(3y)31.58%
ROICexgc(5y)28.03%
ROCE(3y)15.68%
ROCE(5y)15.92%
ROICexcg growth 3Y35.59%
ROICexcg growth 5Y-0.37%
ROICexc growth 3Y34.3%
ROICexc growth 5Y-0.94%
OM growth 3Y10.53%
OM growth 5Y-2.95%
PM growth 3Y22.39%
PM growth 5Y25.28%
GM growth 3Y-0.06%
GM growth 5Y-0.1%
F-Score8
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 132.28% | ||
| Cap/Sales | 1.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 100% | ||
| Profit Quality | 160.96% | ||
| Current Ratio | 3.13 | ||
| Quick Ratio | 3.02 | ||
| Altman-Z | 7.81 |
F-Score8
WACC9.44%
ROIC/WACC1.22
Cap/Depr(3y)126.53%
Cap/Depr(5y)144.2%
Cap/Sales(3y)1.41%
Cap/Sales(5y)1.47%
Profit Quality(3y)172.36%
Profit Quality(5y)166.13%
High Growth Momentum
Growth
EPS 1Y (TTM)-18.73%
EPS 3Y35.58%
EPS 5Y58.39%
EPS Q2Q%-80.95%
EPS Next Y21.88%
EPS Next 2Y39.7%
EPS Next 3Y36.98%
EPS Next 5Y38.15%
Revenue 1Y (TTM)21.73%
Revenue growth 3Y27.61%
Revenue growth 5Y24.48%
Sales Q2Q%11.12%
Revenue Next Year13.93%
Revenue Next 2Y14.43%
Revenue Next 3Y13.7%
Revenue Next 5Y12.63%
EBIT growth 1Y6.59%
EBIT growth 3Y41.04%
EBIT growth 5Y20.8%
EBIT Next Year-5.36%
EBIT Next 3Y24.51%
EBIT Next 5Y16.45%
FCF growth 1Y107.42%
FCF growth 3Y33.71%
FCF growth 5Y32.31%
OCF growth 1Y108.05%
OCF growth 3Y32.41%
OCF growth 5Y31.38%