Neurocrine BiosciencesFRA:NB3 +0.93%95 Operating Margin % is 22.84% as of Mar. 2026, which is 16% above its 10-year median of 19.63. GuruFocus rates FRA:NB3 with a GF Score™ of 95/100 and a GF Value™ of €158.95 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 955 Drug Manufacturers companies, Neurocrine Biosciences ranks better than 90.58% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Neurocrine Biosciences Operating Margin % Related Terms
Neurocrine Biosciences Operating Margin % Historical Data
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The historical data trend for Neurocrine Biosciences's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:NB3 vs VTRS, ELAN, RGC: Operating Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Neurocrine Biosciences's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Neurocrine Biosciences Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Neurocrine Biosciences's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Neurocrine Biosciences's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Neurocrine Biosciences's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Neurocrine Biosciences (FRA:NB3) has a Operating Margin % of 22.84% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Neurocrine Biosciences and its competitors. This is 16% above median its historical median of 19.63. According to the industry distribution chart, Neurocrine Biosciences ranks #90 out of 955 companies in the Drug Manufacturers industry, placing it in the top 9.4%.
Is Neurocrine Biosciences' Operating Margin % too high?
Neurocrine Biosciences' current Operating Margin % of 22.84% is 16% above median its 10-year median of 19.63. The Drug Manufacturers industry median Operating Margin % is 7.45. Neurocrine Biosciences' value of 22.84% is 206.6% above this industry median. Based on the distribution chart, Neurocrine Biosciences ranks #90 out of 955 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Neurocrine Biosciences has a GF Score™ of 95/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Neurocrine Biosciences' Operating Margin % compare to VTRS and ELAN?
According to the Drug Manufacturers industry distribution chart, Neurocrine Biosciences ranks #90 out of 955 companies for Operating Margin %. This places Neurocrine Biosciences in the top 9% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.45. Neurocrine Biosciences' value of 22.84% is 206.6% above this benchmark. While the company's 10-year median is 19.63 vs. the industry median of 7.45, Neurocrine Biosciences has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.45, based on 955 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Neurocrine Biosciences's current Operating Margin % of 22.84% is 206.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Neurocrine Biosciences and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Neurocrine Biosciences's current Operating Margin % is 22.84%, which is 16% above median its own 10-year median of 19.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Neurocrine Biosciences stock overvalued right now?
Based on GuruFocus' analysis, Neurocrine Biosciences (FRA:NB3) is currently considered Modestly Undervalued. The stock's GF Value™ is €158.95, compared to a current price of €141.20 — trading 11.2% below its estimated fair value. The current Operating Margin % is 22.84%, which is 16% above median its 10-year median of 19.63 and 206.6% above the Drug Manufacturers industry median of 7.45. Neurocrine Biosciences' overall GF Score™ is 95/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Neurocrine Biosciences (FRA:NB3), the current Operating Margin % is 22.84% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Neurocrine Biosciences (FRA:NB3) Overvalued in 2026?
Based on GuruFocus' analysis, Neurocrine Biosciences stock appears to be undervalued.
The current stock price of €141.20 is trading 11.2% below its estimated GF Value™ of €158.95.
GuruFocus considers Neurocrine Biosciences to be Modestly Undervalued.
Key valuation signals for FRA:NB3:
Operating Margin %: 22.84% (16% above median its 10-year median of 19.63)
GF Value™: €158.95 vs. price of €141.20 (11.2% below fair value)
Industry Position: 206.6% above the Drug Manufacturers median (#90 of 955)
No single metric tells the full story. See the FRA:NB3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Neurocrine Biosciences Inc is a biopharmaceutical firm focused on the research, development, and commercialization of treatments for neurological, psychiatric, endocrine, and immunological disorders. Its portfolio includes therapies for conditions such as tardive dyskinesia, chorea associated with Huntington's disease, classic congenital adrenal hyperplasia due to 21-hydroxylase deficiency, and treatments for endometriosis and uterine fibroids. The company also maintains a pipeline of drug candidates in various stages of clinical and preclinical development across its therapeutic areas, including small molecules, peptides, proteins, antibodies, conjugates, and gene therapies. It derives revenue from the sale of its pharmaceutical products.
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