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NBIX Neurocrine Biosciences, Inc. - Fundamental Analysis

NEUTRAL
NBIX Stock | Fundamental Analysis & Investment Insights
NASDAQ Healthcare Drug Manufacturers - Specialty & Generic
Current Price
$140.6
Analyst Target
$179.7
+27.8% Upside
52W High
$160.18
52W Low
$84.23

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AI Analysis

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Confidence Score
72%
Analysis Accuracy
Neurocrine Biosciences exhibits strong financial health with an exceptionally high Altman Z-Score (21386045760.0), indicating negligible bankruptcy risk, but a weak Piotroski F-Score of 4/9 suggests only stable operational performance. The company shows robust profitability and growth, with 27.8% YoY revenue growth and 64.5% earnings growth, supported by solid margins and low leverage. However, the stock trades at a premium valuation (P/E 33.56 vs. sector avg 35.94) above its Graham Number of $53.29 and even its growth-based intrinsic value of $123.61, while insider selling and mixed earnings surprises temper optimism. Analysts maintain a strong_buy consensus, but recent price performance and technical trend (0/100) indicate near-term bearish momentum.

Key Strengths

Exceptionally high Altman Z-Score indicates near-zero risk of financial distress
Strong profitability with gross margin of 63.21%, operating margin of 30.10%, and ROE of 14.96%
Robust revenue and earnings growth: 27.8% YoY revenue growth and 64.5% YoY earnings growth
Low financial leverage with Debt/Equity ratio of 0.16 and strong liquidity (Current Ratio: 3.38)
Analyst consensus is strong_buy with a high target price of $179.70, implying ~28% upside

Key Risks

Piotroski F-Score of 4/9 indicates weak operational momentum and financial stability concerns
Stock trades at a premium: current price ($140.60) exceeds both Graham Number ($53.29) and intrinsic value ($123.61)
Insider sentiment is bearish with $23.21M in net insider sales over the last 6 months and no buys
Earnings surprise history is inconsistent, with only 2 out of last 4 quarters beating estimates and an average negative surprise of -7.16%
Technical trend score of 0/100 and recent price declines (-7.5% over 1M, -3.2% over 1W) suggest weakening momentum
AI Fair Value Estimate
Based on comprehensive analysis
$123.61
-12.1% below current price

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