NASDAQ:INCY stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Oct 23, 2023

INCYTE CORP (NASDAQ:INCY) has caught the attention of our stock screener as a great value stock. NASDAQ:INCY excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Evaluating Valuation: NASDAQ:INCY

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:INCY, the assigned 8 reflects its valuation:

95.85% of the companies in the same industry are more expensive than INCY, based on the Price/Earnings ratio.
INCY is valuated reasonably with a Price/Forward Earnings ratio of 11.76.
98.01% of the companies in the same industry are more expensive than INCY, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 18.58. INCY is valued slightly cheaper when compared to this.
Based on the Enterprise Value to EBITDA ratio, INCY is valued cheaply inside the industry as 95.52% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of INCY indicates a rather cheap valuation: INCY is cheaper than 97.18% of the companies listed in the same industry.
INCY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of INCY may justify a higher PE ratio.
A more expensive valuation may be justified as INCY's earnings are expected to grow with 29.50% in the coming years.

Assessing Profitability for NASDAQ:INCY

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:INCY, the assigned 7 is noteworthy for profitability:

INCY has a better Return On Assets (5.90%) than 95.85% of its industry peers.
Looking at the Return On Equity, with a value of 7.73%, INCY belongs to the top of the industry, outperforming 95.35% of the companies in the same industry.
With an excellent Return On Invested Capital value of 5.60%, INCY belongs to the best of the industry, outperforming 96.01% of the companies in the same industry.
With an excellent Profit Margin value of 10.43%, INCY belongs to the best of the industry, outperforming 95.68% of the companies in the same industry.
With an excellent Operating Margin value of 12.60%, INCY belongs to the best of the industry, outperforming 96.18% of the companies in the same industry.
INCY's Gross Margin of 93.82% is amongst the best of the industry. INCY outperforms 94.68% of its industry peers.

Exploring NASDAQ:INCY's Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:INCY was assigned a score of 7 for health:

INCY has an Altman-Z score of 6.41. This indicates that INCY is financially healthy and has little risk of bankruptcy at the moment.
INCY has a Altman-Z score of 6.41. This is amongst the best in the industry. INCY outperforms 85.05% of its industry peers.
The Debt to FCF ratio of INCY is 0.05, which is an excellent value as it means it would take INCY, only 0.05 years of fcf income to pay off all of its debts.
INCY's Debt to FCF ratio of 0.05 is amongst the best of the industry. INCY outperforms 97.34% of its industry peers.
INCY has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
A Current Ratio of 3.81 indicates that INCY has no problem at all paying its short term obligations.
INCY has a Quick Ratio of 3.78. This indicates that INCY is financially healthy and has no problem in meeting its short term obligations.

Assessing Growth Metrics for NASDAQ:INCY

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:INCY has achieved a 5 out of 10:

The Revenue has been growing by 17.18% on average over the past years. This is quite good.
INCY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.74% yearly.
The Revenue is expected to grow by 11.19% on average over the next years. This is quite good.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Check the latest full fundamental report of INCY for a complete fundamental analysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.