Neurocrine Biosciences, Inc.
Neurocrine Biosciences, Inc. Fundamental Analysis
Neurocrine Biosciences, Inc. (NBIX) shows moderate financial fundamentals with a PE ratio of 26.80, profit margin of 16.73%, and ROE of 16.67%. The company generates $2.9B in annual revenue with strong year-over-year growth of 24.81%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 89.2/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze NBIX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentNBIX demonstrates superior asset utilization.
Valuation Score
WeakNBIX trades at a premium to fair value.
Growth Score
ExcellentNBIX delivers strong and consistent growth momentum.
Financial Health Score
ExcellentNBIX maintains a strong and stable balance sheet.
Profitability Score
ExcellentNBIX achieves industry-leading margins.
Key Financial Metrics
Is NBIX Expensive or Cheap?
P/E Ratio
NBIX trades at 26.80 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NBIX's PEG of 2.27 indicates potential overvaluation.
Price to Book
The market values Neurocrine Biosciences, Inc. at 3.94 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 18.41 times EBITDA. This signals the market has high growth expectations.
How Well Does NBIX Make Money?
Net Profit Margin
For every $100 in sales, Neurocrine Biosciences, Inc. keeps $16.73 as profit after all expenses.
Operating Margin
Core operations generate 21.64 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.67 in profit for every $100 of shareholder equity.
ROA
Neurocrine Biosciences, Inc. generates $10.33 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Neurocrine Biosciences, Inc. generates strong operating cash flow of $789.49M, reflecting robust business health.
Free Cash Flow
Neurocrine Biosciences, Inc. generates strong free cash flow of $755.19M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.52 in free cash annually.
FCF Yield
NBIX converts 5.79% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.80
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.27
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.94
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.52
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How NBIX Stacks Against Its Sector Peers
| Metric | NBIX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.80 | 29.43 | Neutral |
| ROE | 16.67% | 800.00% | Weak |
| Net Margin | 16.73% | -20145.00% (disorted) | Strong |
| Debt/Equity | 0.13 | 0.30 | Strong (Low Leverage) |
| Current Ratio | 3.39 | 4.64 | Strong Liquidity |
| ROA | 10.33% | -17936.00% (disorted) | Strong |
NBIX outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Neurocrine Biosciences, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
172.74%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
741.83%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
269.64%
Industry Style: Defensive, Growth, Innovation
High Growth