Now trading at a price of $125.92, Neurocrine Biosciences has moved 8.4% so far today.
Over the last year, Neurocrine Biosciences logged a 4.2% change, with its stock price reaching a high of $157.98 and a low of $103.63. Over the same period, the stock underperformed the S&P 500 index by -33.5%. AThe company's 50-day average price was $122.0. 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 1,500 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 | $2.47 |
| EPS Growth | n/a | 77.27% | 966.67% | -77.88% | 69.57% | 58.33% |
| Avg. Price | $95.87 | $91.08 | $105.2 | $96.7 | $88.85 | $130.58 |
| P/E Ratio | 416.83 | 227.7 | 24.02 | 101.79 | 55.19 | 51.01 |
| 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 has rapidly growing revenues and a flat capital expenditure trend and exceptional EPS growth. Additionally, the company's financial statements display generally positive cash flows and an excellent current ratio of 2.45. Furthermore, Neurocrine Biosciences has weak operating margins with a positive growth rate.
Trades Near Its Graham Number but Has an Elevated P/B Ratio:
Neurocrine Biosciences has a trailing twelve month P/E ratio of 36.7, compared to an average of 26.07 for the Health Care sector. Based on its EPS guidance of $6.82, the company has a forward P/E ratio of 17.9. According to the 63.3% compound average growth rate of Neurocrine Biosciences's historical and projected earnings per share, the company's PEG ratio is 0.58. 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 23.6%. On this basis, the company's PEG ratio is 1.55. 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 5.06 is higher than the sector average of 3.53. The company's shares are currently trading 13.6% below 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.
There's an Analyst Consensus of Strong Upside Potential for Neurocrine Biosciences:
The 24 analysts following Neurocrine Biosciences have set target prices ranging from $114.0 to $192.0 per share, for an average of $162.5 with a buy rating. The company is trading -22.5% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Neurocrine Biosciences has an average amount of shares sold short because 3.0% of the company's shares are sold short. Institutions own 96.8% of the company's shares, and the insider ownership rate stands at 0.99%, suggesting a small amount of insider investors. The largest shareholder is Blackrock Inc., whose 14% stake in the company is worth $1,786,893,925.
