Comprehensive Report: Neurocrine Biosciences, Inc. (NBIX)

TL;DR

Neurocrine Biosciences, Inc. (NBIX) shows a promising future with a strong financial position and potential for growth. The company operates in the Healthcare sector, primarily in Drug Manufacturers - Specialty & Generic. With a market capitalization of approximately $13.85 billion, the company shows a healthy financial status. However, a slight decrease in free cash flow could be a point of concern.

Summary

Neurocrine Biosciences, Inc. operates in the Healthcare sector, specifically in Drug Manufacturers - Specialty & Generic industry. It has a market capitalization of about $13.85 billion, indicating a substantial presence in the market. The company boasts a trailing price-to-earnings ratio of 56.59 and a forward price-to-earnings ratio of 22.09, suggesting that the company's earnings are expected to grow in the future.

The company's earnings per share (EPS) is 2.46 trailing and 6.3 forward, indicating a potential growth in earnings. The book value is 22.614, and it's trading at a price-to-book value of 6.156, indicating that it's trading at a premium to its book value. The company has a total cash of $1.03 billion and a total debt of $460 million, making it financially stable with a debt-to-equity ratio of 20.63.

The company's return on assets and equity are 0.087 and 0.126 respectively, which indicates efficient use of assets and equity. The total revenue of the company is $1.88 billion with an operating margin of 0.291. The company has an EBITDA of $416 million and a free cash flow of $405 million.

Pros

1. The company has a strong financial position with a total cash of $1.03 billion and a total debt of $460 million.
2. The company shows promising growth with a forward price-to-earnings ratio of 22.09.
3. The company has a healthy market capitalization of $13.85 billion.
4. The company's return on assets and equity are 0.087 and 0.126 respectively, indicating efficient use of assets and equity.
5. The company has a strong institutional backing with 96.3% of the shares held by institutions.

Cons

1. The company is trading at a premium to its book value, with a price-to-book value of 6.156.
2. There has been a slight decrease in free cash flow from $141.2 million to $118.1 million over the past five quarters.

Recommendation

Given the company's strong financial position, potential for growth, and substantial institutional backing, it is recommended to BUY the NBIX stock. However, investors should keep an eye on the slight decrease in free cash flow.