Neurocrine BiosciencesLTS:0K6R +1.08%96 ROE % is 23.77% as of Mar. 2026, which is 176% above its 10-year median of 8.60. GuruFocus rates LTS:0K6R with a GF Score™ of 96/100 and a GF Value™ of $189.77 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 934 Drug Manufacturers companies, Neurocrine Biosciences ranks better than 89.51% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* 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.
For the Drug Manufacturers - Specialty & Generic subindustry, Neurocrine Biosciences's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Neurocrine Biosciences's ROE % distribution charts can be found below:
* The bar in red indicates where Neurocrine Biosciences's ROE % falls into.
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Neurocrine Biosciences (LTS:0K6R) has a ROE % of 23.77% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Neurocrine Biosciences and its competitors. This is 176% above median its historical median of 8.60. According to the industry distribution chart, Neurocrine Biosciences ranks #98 out of 934 companies in the Drug Manufacturers industry, placing it in the top 10.5%.
Is Neurocrine Biosciences' ROE % too high?
Neurocrine Biosciences' current ROE % of 23.77% is 176% above median its 10-year median of 8.60. The Drug Manufacturers industry median ROE % is 6.02. Neurocrine Biosciences' value of 23.77% is 294.9% above this industry median. Based on the distribution chart, Neurocrine Biosciences ranks #98 out of 934 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 96/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Neurocrine Biosciences' ROE % compare to VTRS and ELAN?
According to the Drug Manufacturers industry distribution chart, Neurocrine Biosciences ranks #98 out of 934 companies for ROE %. This places Neurocrine Biosciences in the top 11% of its industry — outperforming the majority of peers. The industry median ROE % is 6.02. Neurocrine Biosciences' value of 23.77% is 294.9% above this benchmark. While the company's 10-year median is 8.60 vs. the industry median of 6.02, 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 ROE % for a Drug Manufacturers company?
The median ROE % among Drug Manufacturers companies is 6.02, based on 934 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Neurocrine Biosciences's current ROE % of 23.77% is 294.9% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Neurocrine Biosciences and its competitors. For the Drug Manufacturers industry, the median ROE % is 6.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Neurocrine Biosciences's current ROE % is 23.77%, which is 176% above median its own 10-year median of 8.60. 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 (LTS:0K6R) is currently considered Modestly Undervalued. The stock's GF Value™ is $189.77, compared to a current price of $170.14 — trading 10.3% below its estimated fair value. The current ROE % is 23.77%, which is 176% above median its 10-year median of 8.60 and 294.9% above the Drug Manufacturers industry median of 6.02. Neurocrine Biosciences' overall GF Score™ is 96/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Neurocrine Biosciences (LTS:0K6R), the current ROE % is 23.77% 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 (LTS:0K6R) Overvalued in 2026?
Based on GuruFocus' analysis, Neurocrine Biosciences stock appears to be undervalued.
The current stock price of $170.14 is trading 10.3% below its estimated GF Value™ of $189.77.
GuruFocus considers Neurocrine Biosciences to be Modestly Undervalued.
Key valuation signals for LTS:0K6R:
ROE %: 23.77% (176% above median its 10-year median of 8.60)
GF Value™: $189.77 vs. price of $170.14 (10.3% below fair value)
Industry Position: 294.9% above the Drug Manufacturers median (#98 of 934)
No single metric tells the full story. See the LTS:0K6R 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.
96GF Score
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