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.

Snowflake

Fundamentals

Exceptional growth potential with mediocre balance sheet.


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


Market Performance


7 Day Return

3.6%

NBIX

0.8%

US Biotechs

1.0%

US Market


1 Year Return

-17.4%

NBIX

-8.3%

US Biotechs

6.7%

US Market

Return vs Industry: NBIX underperformed the US Biotechs industry which returned -8.3% over the past year.

Return vs Market: NBIX underperformed the US Market which returned 6.7% over the past year.


Share holder returns

NBIXIndustryMarket
7 Day3.6%0.8%1.0%
30 Day-5.7%-3.9%-1.8%
90 Day4.4%-3.5%-1.8%
1 Year-17.4%-17.4%-7.5%-8.3%9.1%6.7%
3 Year114.9%114.9%13.6%9.6%46.1%36.6%
5 Year453.0%453.0%3.3%-1.7%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

38%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: NBIX ($90.92) is trading below our estimate of fair value ($145.74)

Significantly Undervalued: NBIX is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: NBIX is poor value based on its PE Ratio (457.7x) compared to the Biotechs industry average (17.2x).

PE vs Market: NBIX is poor value based on its PE Ratio (457.7x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: NBIX is poor value based on its PEG Ratio (9.9x)


Price Based on Value of Assets

PB vs Industry: NBIX is overvalued based on its PB Ratio (17.2x) compared to the US Biotechs industry average (2.5x).


Next Steps

Future Growth

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

46.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: NBIX's forecast earnings growth (46.3% per year) is above the savings rate (2.7%).

Earnings vs Market: NBIX's earnings (46.3% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: NBIX's revenue (23.9% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: NBIX's revenue (23.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: NBIX's Return on Equity is forecast to be high in 3 years time (34.8%)


Next Steps

Past Performance

How has Neurocrine Biosciences performed over the past 5 years?

5.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NBIX has become profitable over the past 5 years, growing earnings by 5.7% per year.

Accelerating Growth: NBIX has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NBIX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Biotechs industry (78.4%).


Return on Equity

High ROE: NBIX's Return on Equity (3.7%) is considered low.


Return on Assets

ROA vs Industry: NBIX's Return on Assets is below or equal to the Biotechs industry average last year.


Return on Capital Employed

ROCE Improving: NBIX's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Neurocrine Biosciences's financial position?


Financial Position Analysis

Short Term Liabilities: NBIX's short term assets ($748.8M) exceeds its short term liabilities ($100.6M)

Long Term Liabilities: NBIX's short term assets (748.8M) exceeds its long term liabilities (482.6M)


Debt to Equity History and Analysis

Debt Level: NBIX's debt to equity ratio (82.4%) 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 not well covered by operating cash flow (17.8%).

Interest Coverage: NBIX's interest payments on its debt are well covered by EBIT (9.9x 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 1.879220x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.0%forecastin3Years0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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.

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?

5.0yrs

Average management tenure


CEO

Kevin Gorman (61yo)

11.8yrs

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 ($USD8.63M) is about average for companies of similar size in the US market ($USD6.81M).

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


Management Age and Tenure

5.0yrs

Average Tenure

54yo

Average Age

Experienced Management: NBIX's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

10.1yrs

Average Tenure

64yo

Average Age

Experienced Board: NBIX's board of directors are seasoned and experienced ( 10.1 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


Management Team

  • Kevin Gorman (61yo)

    CEO & Director

    • Tenure: 11.8yrs
    • Compensation: US$8.63m
  • Julie Cooke (53yo)

    Chief Human Resources Officer

    • Tenure: 2.1yrs
  • Eric Benevich (54yo)

    Chief Commercial Officer

    • Tenure: 4.4yrs
    • Compensation: US$3.67m
  • Dimitri Grigoriadis (61yo)

    Chief Research Officer

    • Tenure: 12.8yrs
    • Compensation: US$3.33m
  • Haig Bozigian (61yo)

    Chief Development Officer

    • Tenure: 12.8yrs
    • Compensation: US$2.97m
  • Darin Lippoldt (53yo)

    Chief Legal Officer & Corporate Secretary

    • Tenure: 5yrs
  • Kyle Gano (46yo)

    Chief Business Development and Strategy Officer

    • Tenure: 8.8yrs
    • Compensation: US$4.57m
  • Eiry Roberts (55yo)

    Chief Medical Officer

    • Tenure: 1.8yrs
    • Compensation: US$8.31m
  • Matt Abernethy (39yo)

    Chief Financial Officer

    • Tenure: 1.9yrs
    • Compensation: US$2.69m
  • Jane Sorensen

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Richard Pops (57yo)

    Independent Director

    • Tenure: 21.5yrs
    • Compensation: US$737.25k
  • Steve Sherwin (70yo)

    Independent Director

    • Tenure: 20.5yrs
    • Compensation: US$732.58k
  • Bill Rastetter (71yo)

    Independent Chairman of the Board

    • Tenure: 8.4yrs
    • Compensation: US$873.80k
  • Gary Lyons (68yo)

    Independent Director

    • Tenure: 26.7yrs
    • Compensation: US$712.75k
  • Greg Morrow (67yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$730.25k
  • Kevin Gorman (61yo)

    CEO & Director

    • Tenure: 11.8yrs
    • Compensation: US$8.63m
  • Leslie Norwalk (54yo)

    Director

    • Tenure: 0.08yrs
  • Al Sandrock (61yo)

    Independent Director

    • Tenure: 4.1yrs
    • 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$8.326b
  • Shares outstanding: 91.58m
  • 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 (valbena ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:38
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
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.

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