NasdaqGS:NBIX

Stock Analysis Report

Executive Summary

Neurocrine Biosciences, Inc. discovers and develops pharmaceuticals for the treatment of neurological and endocrine-related diseases and disorders in the United States.

Rewards

Trading at 44.2% below its fair value

Earnings are forecast to grow 37.3% per year

Earnings grew by 112.5% over the past year

Risk Analysis

Has a high level of debt

Large one-off items impacting financial results



Snowflake Analysis

Exceptional 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: NBIX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.6%

NBIX

1.2%

US Biotechs

1.2%

US Market


1 Year Return

14.4%

NBIX

12.4%

US Biotechs

24.2%

US Market

Return vs Industry: NBIX exceeded the US Biotechs industry which returned 10.9% over the past year.

Return vs Market: NBIX underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

NBIXIndustryMarket
7 Day1.6%1.2%1.2%
30 Day-4.7%0.2%3.5%
90 Day6.7%17.5%11.7%
1 Year14.4%14.4%13.4%12.4%26.9%24.2%
3 Year169.5%169.5%30.1%25.8%53.0%43.2%
5 Year212.0%212.0%2.6%-2.3%75.3%56.0%

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

Valuation

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

45.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NBIX ($107.84) is trading below our estimate of fair value ($193.3)

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


Price To Earnings Ratio

PE vs Industry: NBIX is poor value based on its PE Ratio (466.7x) compared to the Biotechs industry average (20.1x).

PE vs Market: NBIX is poor value based on its PE Ratio (466.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: NBIX is poor value based on its PEG Ratio (12.5x)


Price to Book Ratio

PB vs Industry: NBIX is overvalued based on its PB Ratio (17.3x) compared to the US Biotechs industry average (3.2x).


Next Steps

Future Growth

How is Neurocrine Biosciences forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

37.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NBIX's forecast earnings growth (37.3% per year) is above the savings rate (1.7%).

Earnings vs Market: NBIX's earnings (37.3% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: NBIX's revenue (21.4% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: NBIX's revenue (21.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NBIX's Return on Equity is forecast to be high in 3 years time (32.6%)


Next Steps

Past Performance

How has Neurocrine Biosciences performed over the past 5 years?

14.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NBIX has a large one-off loss of $130.1M impacting its September 30 2019 financial results.

Growing Profit Margin: NBIX's current net profit margins (3.1%) are higher than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: NBIX has become profitable over the past 5 years, growing earnings by 14.5% per year.

Accelerating Growth: NBIX's earnings growth over the past year (112.5%) exceeds its 5-year average (14.5% per year).

Earnings vs Industry: NBIX earnings growth over the past year (112.5%) exceeded the Biotechs industry 103.3%.


Return on Equity

High ROE: NBIX's Return on Equity (3.7%) 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: NBIX's short term assets ($819.2M) exceed its short term liabilities ($115.7M).

Long Term Liabilities: NBIX's short term assets ($819.2M) exceed its long term liabilities ($489.8M).


Debt to Equity History and Analysis

Debt Level: NBIX's debt to equity ratio (70.2%) is considered high.

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

Debt Coverage: NBIX's debt is well covered by operating cash flow (24.8%).

Interest Coverage: NBIX's interest payments on its debt are well covered by EBIT (11.9x coverage).


Balance Sheet

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

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate NBIX'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 NBIX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NBIX'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 NBIX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Neurocrine Biosciences's salary, the management and board of directors tenure and is there insider trading?

5.3yrs

Average management tenure


CEO

Kevin Gorman (61yo)

12yrs

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 ($USD8.63M) is about average for companies of similar size in the US market ($USD10.76M).

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


Management Age and Tenure

5.3yrs

Average Tenure

54yo

Average Age

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


Board Age and Tenure

10.3yrs

Average Tenure

64yo

Average Age

Experienced Board: NBIX's board of directors are seasoned and experienced ( 10.3 years average tenure).


Insider Trading

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.


Management Team

  • Kevin Gorman (61yo)

    CEO & Director

    • Tenure: 12yrs
    • Compensation: US$8.63m
  • Julie Cooke (53yo)

    Chief Human Resources Officer

    • Tenure: 2.3yrs
  • Eric Benevich (54yo)

    Chief Commercial Officer

    • Tenure: 4.7yrs
    • Compensation: US$3.67m
  • Dimitri Grigoriadis (61yo)

    Chief Research Officer

    • Tenure: 13yrs
    • Compensation: US$3.33m
  • Haig Bozigian (61yo)

    Chief Development Officer

    • Tenure: 13.1yrs
    • Compensation: US$2.97m
  • Darin Lippoldt (53yo)

    Chief Legal Officer & Corporate Secretary

    • Tenure: 5.3yrs
  • Kyle Gano (46yo)

    Chief Business Development and Strategy Officer

    • Tenure: 9yrs
    • Compensation: US$4.57m
  • Eiry Roberts (55yo)

    Chief Medical Officer

    • Tenure: 2yrs
    • Compensation: US$8.31m
  • Matt Abernethy (39yo)

    Chief Financial Officer

    • Tenure: 2.2yrs
    • Compensation: US$2.69m
  • Jane Sorensen

    Head of Investor Relations


    Board Members

    • Richard Pops (57yo)

      Independent Director

      • Tenure: 21.8yrs
      • Compensation: US$737.25k
    • Steve Sherwin (70yo)

      Independent Director

      • Tenure: 20.8yrs
      • Compensation: US$732.58k
    • Bill Rastetter (71yo)

      Independent Chairman of the Board

      • Tenure: 8.7yrs
      • Compensation: US$873.80k
    • Gary Lyons (68yo)

      Independent Director

      • Tenure: 26.9yrs
      • Compensation: US$712.75k
    • Greg Morrow (67yo)

      Independent Director

      • Tenure: 4.3yrs
      • Compensation: US$730.25k
    • Kevin Gorman (61yo)

      CEO & Director

      • Tenure: 12yrs
      • Compensation: US$8.63m
    • Leslie Norwalk (54yo)

      Director

      • Tenure: 0.3yrs
    • Al Sandrock (61yo)

      Independent Director

      • Tenure: 4.3yrs
      • Compensation: US$733.25k

    Company Information

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


    Key Information

    • Name: Neurocrine Biosciences, Inc.
    • Ticker: NBIX
    • Exchange: NasdaqGS
    • Founded: 1992
    • Industry: Biotechnology
    • Sector: Pharmaceuticals & Biotech
    • Market Cap: US$9.639b
    • Shares outstanding: 92.09m
    • 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 pharmaceuticals for the treatment of neurological and endocrine-related diseases and disorders in the United States. The company offers INGREZZA (valbenazine), a vesicular monoamine transporter 2 inhibitor (VMAT2), which is used for the treatment of movement disorders; ORILISSA, a gonadotropin-releasing hormone (GnRH) antagonist for use in women’s health. Its product candidates in clinical development include elagolix that is in Phase III clinical trial for Uterine Fibroids; opicapone, a catechol-O-methyltransferase inhibitor, which is in Phase III clinical trial that is used for in adjunct therapy and preparations of levodopa/DOPA decarboxylase inhibitors for adult patients with Parkinson’s disease; and NBI-74788, which is in Phase II clinical trial for the treatment of congenital adrenal hyperplasia. The company’s product candidates also comprise VMAT2 Inhibitors and which are in Phase I clinical trial for neurology/psychiatry disorders. It has collaborations and agreements with AbbVie Inc. to develop and commercialize elagolix and GnRH antagonists for women’s and men’s health; Mitsubishi Tanabe Pharma Corporation to develop and commercialize INGREZZA for movement disorders; and BIAL – Portela & Ca, S.A. to develop and commercialize opicapone for the treatment of human diseases and conditions, including Parkinson’s disease. Neurocrine Biosciences, Inc. also has a research collaboration agreement with Jnana Therapeutics Inc. to discover small molecule therapeutics for central nervous system disorders; a collaboration and license agreement with Voyager Therapeutics, Inc. for the research, development, and commercialization of VY-AADC program for Parkinson’s disease and VY-FXN01 program for Friedreich’s ataxia; and license and collaboration agreement with Xenon Pharmaceuticals Inc. for developing treatments for epilepsy. Neurocrine Biosciences, Inc. was founded 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 Analysis2020/01/20 23:42
    End of Day Share Price2020/01/17 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    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.