Neurocrine Biosciences Inc (NBIX, Financial) has experienced a notable uptick in its stock performance, with a market capitalization now standing at $12.62 billion. The current price of $128.45 reflects a 6.85% gain over the past week and a 12.93% gain over the past three months. According to GF Value, the stock is currently modestly undervalued at a GF Value of $148.49, up from the past GF Value of $143.84. This valuation suggests that the stock may still have room to grow, maintaining its status as modestly undervalued from the past valuation.
Introduction to Neurocrine Biosciences
Neurocrine Biosciences Inc, operating within the drug manufacturers industry, is a research-based pharmaceutical company focused on developing treatments for central nervous system and endocrine-related disorders. Their late-stage clinical programs include elagolix for women's health, opicapone for Parkinson's patients, and ingrezza for Tourette syndrome. These innovative drug candidates position Neurocrine Biosciences as a key player in addressing complex health issues.
Assessing Neurocrine Biosciences' Profitability
Neurocrine Biosciences holds a Profitability Rank of 6/10, indicating a solid position within the industry. The company's operating margin stands at an impressive 19.50%, surpassing 83.12% of 1,037 companies in the same realm. With a return on equity (ROE) of 10.86% and return on assets (ROA) of 7.74%, Neurocrine outperforms a majority of its peers. The return on invested capital (ROIC) at 20.78% further underscores the company's efficient capital allocation. These figures, coupled with five years of profitability over the past decade, demonstrate Neurocrine's consistent financial performance.
Growth Trajectory of Neurocrine Biosciences
The company's Growth Rank is a robust 7/10. Neurocrine has shown a remarkable 3-Year Revenue Growth Rate per Share of 22.30% and an even more impressive 5-Year Revenue Growth Rate per Share of 46.90%. These rates are higher than the majority of their competitors, indicating a strong upward trajectory. The estimated Total Revenue Growth Rate for the next 3 to 5 years is projected at 13.10%, suggesting that the company's growth is expected to continue. However, the 3-Year EPS without NRI Growth Rate is a modest 2.90%, indicating that while revenue is growing, earnings per share are not increasing at the same rate.
Influential Shareholders in Neurocrine Biosciences
Neurocrine Biosciences' stock is held by notable investors, with Steven Cohen (Trades, Portfolio) leading the pack holding 2,578,128 shares, representing 2.62% of the company. Jim Simons (Trades, Portfolio) follows with 1,590,164 shares, accounting for 1.62%, and PRIMECAP Management (Trades, Portfolio) holds 391,585 shares, making up 0.4%. The involvement of these significant holders underscores investor confidence in the company's future prospects.
Competitive Landscape
When compared to its competitors, Neurocrine Biosciences holds its own with a market cap close to that of Viatris Inc (VTRS, Financial) at $12.78 billion. It surpasses both Catalent Inc (CTLT, Financial) and Elanco Animal Health Inc (ELAN, Financial), which have market caps of $7.96 billion and $7.23 billion, respectively. This positioning reflects Neurocrine's competitive strength within the drug manufacturing industry.
Conclusion: Neurocrine Biosciences' Market Position and Outlook
In summary, Neurocrine Biosciences Inc has demonstrated strong stock performance and remains modestly undervalued according to GF Value. The company's solid profitability metrics and significant growth rates in revenue per share position it well within the competitive landscape of drug manufacturers. The presence of influential shareholders like Steven Cohen (Trades, Portfolio) and Jim Simons (Trades, Portfolio) may continue to impact the stock positively. With its competitive market cap and promising growth prospects, Neurocrine Biosciences is a company to watch for value investors seeking opportunities in the pharmaceutical sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
