Essential Facts for NBIX Investors Today

Neurocrine Biosciences logged a -4.6% change during today's afternoon session, and is now trading at a price of $134.06 per share.

Neurocrine Biosciences returned gains of 56.9% last year, with its stock price reaching a high of $148.37 and a low of $89.2. Over the same period, the stock outperformed the S&P 500 index by 30.0%. More recently, the company's 50-day average price was $138.71. Neurocrine Biosciences, Inc. discovers, develops, and markets pharmaceuticals for neurological, neuroendocrine, and neuropsychiatric disorders in the United States and internationally. Based in San Diego, CA, the Large-Cap Health Care company has 1,448 full time employees. Neurocrine Biosciences has not offered a dividend during the last year.

Strong Revenue Growth and an Excellent Current Ratio:

2018 2019 2020 2021 2022 2023
Revenue (M) $451 $788 $1,046 $1,134 $1,489 $1,887
Operating Margins 8% 9% 16% 9% 17% 13%
Net Margins 5% 5% 39% 8% 10% 13%
Net Income (M) $21 $37 $407 $90 $154 $250
Net Interest Expense (M) $30 $32 $33 $26 $7 $5
Depreciation & Amort. (M) $4 $7 $9 $11 $15 $18
Diluted Shares (M) 96 97 97 98 99 10
Earnings Per Share $0.22 $0.39 $4.16 $0.92 $1.56 $24.72
EPS Growth n/a 77.27% 966.67% -77.88% 69.57% 1484.62%
Avg. Price $95.87 $91.08 $105.2 $96.7 $88.85 $134.14
P/E Ratio 416.83 227.7 24.02 101.79 55.19 52.4
Free Cash Flow (M) $77 $132 $218 $233 $323 $362
CAPEX (M) $25 $15 $11 $23 $16 $28
Current Ratio 8.36 1.47 5.45 3.96 2.7 2.45

Neurocrine Biosciences benefits from rapidly growing revenues and increasing reinvestment in the business, exceptional EPS growth, and generally positive cash flows. The company's financial statements show an excellent current ratio of 2.45 and decent operating margins with a positive growth rate.

Trades Below Its Graham Number but Has an Elevated P/B Ratio:

Neurocrine Biosciences has a trailing twelve month P/E ratio of 37.7, compared to an average of 30.21 for the Health Care sector. Based on its EPS guidance of $6.27, the company has a forward P/E ratio of 22.1. According to the 61.4% compound average growth rate of Neurocrine Biosciences's historical and projected earnings per share, the company's PEG ratio is 0.61. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 23.3%. On this basis, the company's PEG ratio is 1.62. This suggests that these shares are overvalued. Furthermore, Neurocrine Biosciences is likely overvalued compared to the book value of its equity, since its P/B ratio of 5.65 is higher than the sector average of 4.08. The company's shares are currently trading -61.8% above their Graham number. Ultimately, Neurocrine Biosciences's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.

Neurocrine Biosciences Has an Average Rating of Buy:

The 25 analysts following Neurocrine Biosciences have set target prices ranging from $111.0 to $216.0 per share, for an average of $159.36 with a buy rating. The company is trading -15.9% away from its average target price, indicating that there is an analyst consensus of some upside potential.

Neurocrine Biosciences has an average amount of shares sold short because 2.2% of the company's shares are sold short. Institutions own 96.0% of the company's shares, and the insider ownership rate stands at 1.0%, suggesting a small amount of insider investors. The largest shareholder is Blackrock Inc., whose 14% stake in the company is worth $1,844,864,476.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.