NasdaqGS:NBIX

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$9.3b

Last Updated

2021/06/13 23:28 UTC

Data Sources

Company Financials +

Executive Summary

Neurocrine Biosciences, Inc., a biopharmaceutical company, discovers, develops, and markets pharmaceutical products for the treatment of neurological, endocrine, and psychiatric-based diseases and disorders in the United States. More Details


Snowflake Analysis

Solid track record with high growth potential.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: NBIX's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

4.5%

NBIX

5.5%

US Biotechs

0.8%

US Market


1 Year Return

-14.1%

NBIX

31.3%

US Biotechs

44.4%

US Market

Return vs Industry: NBIX underperformed the US Biotechs industry which returned 31.3% over the past year.

Return vs Market: NBIX underperformed the US Market which returned 44.3% over the past year.


Shareholder returns

NBIXIndustryMarket
7 Day4.5%5.5%0.8%
30 Day4.2%8.5%3.0%
90 Day1.6%4.4%4.4%
1 Year-14.1%-14.1%33.1%31.3%46.7%44.4%
3 Year-3.6%-3.6%27.1%21.0%60.3%50.4%
5 Year122.9%122.9%58.6%46.5%128.3%102.8%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NBIX ($98.61) is trading below our estimate of fair value ($295.22)

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 (22.9x) compared to the US Biotechs industry average (21.9x).

PE vs Market: NBIX is poor value based on its PE Ratio (22.9x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: NBIX is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: NBIX is overvalued based on its PB Ratio (7.7x) compared to the US Biotechs industry average (3.5x).


Future Growth

How is Neurocrine Biosciences forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

32.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NBIX's forecast earnings growth (32.4% per year) is above the savings rate (2%).

Earnings vs Market: NBIX's earnings (32.4% per year) are forecast to grow faster than the US market (15.5% per year).

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

Revenue vs Market: NBIX's revenue (17.8% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: NBIX's revenue (17.8% per year) is forecast to grow slower 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 (27.9%)


Past Performance

How has Neurocrine Biosciences performed over the past 5 years?

73.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NBIX has a high level of non-cash earnings.

Growing Profit Margin: NBIX's current net profit margins (38.5%) are higher than last year (19.9%).


Past Earnings Growth Analysis

Earnings Trend: NBIX has become profitable over the past 5 years, growing earnings by 73.5% per year.

Accelerating Growth: NBIX's earnings growth over the past year (127.8%) exceeds its 5-year average (73.5% per year).

Earnings vs Industry: NBIX earnings growth over the past year (127.8%) exceeded the Biotechs industry -7.7%.


Return on Equity

High ROE: NBIX's Return on Equity (33.3%) is considered high.


Financial Health

How is Neurocrine Biosciences's financial position?


Financial Position Analysis

Short Term Liabilities: NBIX's short term assets ($1.1B) exceed its short term liabilities ($190.0M).

Long Term Liabilities: NBIX's short term assets ($1.1B) exceed its long term liabilities ($450.8M).


Debt to Equity History and Analysis

Debt Level: NBIX's debt to equity ratio (26.7%) is considered satisfactory.

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 (87%).

Interest Coverage: NBIX's interest payments on its debt are well covered by EBIT (13.8x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

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

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

6.4yrs

Average management tenure


CEO

Kevin Gorman (62 yo)

13.42yrs

Tenure

US$13,880,632

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 was Exe...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD13.88M) is above average for companies of similar size in the US market ($USD6.52M).

Compensation vs Earnings: Kevin's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: NBIX's management team is seasoned and experienced (6.4 years average tenure).


Board Members

Experienced Board: NBIX's board of directors are seasoned and experienced ( 10.1 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: NBIX
  • Exchange: NasdaqGS
  • Founded: 1992
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$9.323b
  • Shares outstanding: 94.55m
  • Website: https://www.neurocrine.com

Number of Employees


Location

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

Listings


Biography

Neurocrine Biosciences, Inc., a biopharmaceutical company, discovers, develops, and markets pharmaceutical products for the treatment of neurological, endocrine, and psychiatric-based diseases and disorder...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/13 23:28
End of Day Share Price2021/06/11 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.