DB:NB3

Stock Analysis Report

Executive Summary

Neurocrine Biosciences, Inc. discovers and develops treatments for patients with neurological, endocrine, and psychiatric disorders.


Snowflake Analysis

High growth potential with proven track record.


Similar Companies

Share Price & News

How has Neurocrine Biosciences's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NB3 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.3%

NB3

0.4%

DE Biotechs

0.2%

DE Market


1 Year Return

35.5%

NB3

9.0%

DE Biotechs

14.4%

DE Market

Return vs Industry: NB3 exceeded the German Biotechs industry which returned 7.2% over the past year.

Return vs Market: NB3 exceeded the German Market which returned 14.1% over the past year.


Shareholder returns

NB3IndustryMarket
7 Day-3.3%0.4%0.2%
30 Day2.5%-2.1%0.9%
90 Day-5.4%8.0%4.6%
1 Year35.5%35.5%9.2%9.0%17.9%14.4%
3 Year130.9%130.9%45.5%43.9%15.7%5.6%
5 Year176.5%176.5%12.8%10.5%23.4%6.5%

Price Volatility Vs. Market

How volatile is Neurocrine Biosciences's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Neurocrine Biosciences undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NB3 (€95.8) is trading below our estimate of fair value (€191.82)

Significantly Below Fair Value: NB3 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NB3 is poor value based on its PE Ratio (259.3x) compared to the Biotechs industry average (43.8x).

PE vs Market: NB3 is poor value based on its PE Ratio (259.3x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: NB3 is poor value based on its PEG Ratio (7.5x)


Price to Book Ratio

PB vs Industry: NB3 is overvalued based on its PB Ratio (15.2x) compared to the DE Biotechs industry average (3.5x).


Next Steps

Future Growth

How is Neurocrine Biosciences forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

34.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NB3's forecast earnings growth (34.8% per year) is above the savings rate (-0.4%).

Earnings vs Market: NB3's earnings (34.8% per year) are forecast to grow faster than the German market (13.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NB3's revenue (19.4% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: NB3's revenue (19.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NB3's Return on Equity is forecast to be high in 3 years time (34.9%)


Next Steps

Past Performance

How has Neurocrine Biosciences performed over the past 5 years?

23.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NB3 has a large one-off loss of $167.3M impacting its December 31 2019 financial results.

Growing Profit Margin: NB3's current net profit margins (4.7%) are higher than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: NB3 has become profitable over the past 5 years, growing earnings by 23.7% per year.

Accelerating Growth: NB3's earnings growth over the past year (75.3%) exceeds its 5-year average (23.7% per year).

Earnings vs Industry: NB3 earnings growth over the past year (75.3%) exceeded the Biotechs industry -4.7%.


Return on Equity

High ROE: NB3's Return on Equity (5.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Neurocrine Biosciences's financial position?


Financial Position Analysis

Short Term Liabilities: NB3's short term assets ($831.0M) exceed its short term liabilities ($565.3M).

Long Term Liabilities: NB3's short term assets ($831.0M) exceed its long term liabilities ($103.8M).


Debt to Equity History and Analysis

Debt Level: NB3's debt to equity ratio (64.2%) is considered high.

Reducing Debt: Insufficient data to determine if NB3's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: NB3 has a low level of unsold assets or inventory.

Debt Coverage by Assets: NB3's debt is covered by short term assets (assets are 2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: NB3 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: NB3 is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Neurocrine Biosciences's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate NB3's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NB3's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NB3's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NB3's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NB3's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Kevin Gorman (61yo)

12.1yrs

Tenure

US$8,632,979

Compensation

Dr. Kevin C. Gorman, Ph.D., has been the President and Chief Executive Officer of Neurocrine Biosciences, Inc. since January 2008. Dr. Gorman is a Founder of Neurocrine Biosciences, Inc. Dr. Gorman served  ...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD8.63M) is above average for companies of similar size in the German market ($USD4.36M).

Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Gorman
CEO & Director12.1yrsUS$8.63m0.47% $42.0m
Matthew Abernethy
Chief Financial Officer2.3yrsUS$2.69m0.0062% $553.4k
Kyle Gano
Chief Business Development and Strategy Officer9.1yrsUS$4.57m0.10% $8.9m
Eric Benevich
Chief Commercial Officer4.8yrsUS$3.67m0.022% $1.9m
Eiry Roberts
Chief Medical Officer2.1yrsUS$8.31m0.0081% $722.7k
Dimitri Grigoriadis
Chief Research Officer13.1yrsUS$3.33m0.12% $10.8m
Jane Sorensen
Head of Investor Relations0yrsno datano data
Darin Lippoldt
Chief Legal Officer & Corporate Secretary5.3yrsno data0.026% $2.3m
Julie Cooke
Chief Human Resources Officer2.4yrsno data0.0050% $450.4k
Haig Bozigian
Chief Development Officer13.2yrsUS$2.97m0.16% $14.2m

5.3yrs

Average Tenure

54yo

Average Age

Experienced Management: NB3's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kevin Gorman
CEO & Director12.1yrsUS$8.63m0.47% $42.0m
Richard Pops
Independent Director21.8yrsUS$737.25k0.032% $2.9m
Stephen Sherwin
Independent Director20.8yrsUS$732.58k0.052% $4.6m
William Rastetter
Independent Chairman of the Board8.8yrsUS$873.80k0.027% $2.4m
Gary Lyons
Independent Director27yrsUS$712.75k0.24% $21.9m
George Morrow
Independent Director4.3yrsUS$730.25kno data
Shalini Sharp
Director0yrsno datano data
Leslie Norwalk
Director0.4yrsno datano data
Alfred Sandrock
Independent Director4.4yrsUS$733.25kno data

10.4yrs

Average Tenure

61yo

Average Age

Experienced Board: NB3's board of directors are seasoned and experienced ( 10.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Neurocrine Biosciences, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Neurocrine Biosciences, Inc.
  • Ticker: NB3
  • Exchange: DB
  • Founded: 1992
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$9.668b
  • Listing Market Cap: US$8.955b
  • Shares outstanding: 92.29m
  • Website: https://www.neurocrine.com

Number of Employees


Location

  • Neurocrine Biosciences, Inc.
  • 12780 El Camino Real
  • San Diego
  • California
  • 92130
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NBIXNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 1996
NB3DB (Deutsche Boerse AG)YesCommon StockDEEURMay 1996
0K6RLSE (London Stock Exchange)YesCommon StockGBUSDMay 1996

Biography

Neurocrine Biosciences, Inc. discovers and develops treatments for patients with neurological, endocrine, and psychiatric disorders. The company offers INGREZZA (valbenazine), a vesicular monoamine transporter 2 inhibitor (VMAT2), which is used for the treatment of adults with tardive dyskinesia; and ORILISSA (elagolix) for the management of moderate to severe endometriosis pain in women in the United States. It also develops opicapone, a catechol-o-methyltransferase inhibitor, for the treatment of Parkinson’s disease patients; crinecerfont for the treatment of congenital adrenal hyperplasia; and NBIb-1817, an investigational gene therapy for the treatment of Parkinson’s disease. In addition, the company is developing NBI-921352, an inhibitor being developed to treat pediatric patients with SCN8A-DEE and other potential indications, including adult focal epilepsy; and ACT-709478, an orally active and brain penetrating T-type calcium channel blocker for potential use in certain forms of generalized epilepsy. Neurocrine Biosciences, Inc. has collaboration agreements with AbbVie Inc.; Mitsubishi Tanabe Pharma Corporation; BIAL – Portela & Ca, S.A.; Jnana Therapeutics Inc.; Voyager Therapeutics, Inc.; and Xenon Pharmaceuticals Inc. Neurocrine Biosciences, Inc. was incorporated in 1992 and is headquartered in San Diego, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 20:38
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.