Looking for growth without the hefty price tag? Consider NASDAQ:INCY.

Last update: Nov 6, 2023

Uncover the potential of INCYTE CORP (NASDAQ:INCY), a growth stock that our stock screener found to be reasonably priced. NASDAQ:INCY is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

Deciphering NASDAQ:INCY's Growth Rating

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:INCY has earned a 7 for growth:

The Earnings Per Share has grown by an impressive 36.28% over the past year.
Looking at the last year, INCY shows a quite strong growth in Revenue. The Revenue has grown by 8.35% in the last year.
The Revenue has been growing by 17.18% on average over the past years. This is quite good.
Based on estimates for the next years, INCY will show a very strong growth in Earnings Per Share. The EPS will grow by 25.74% on average per year.
INCY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.19% yearly.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

How do we evaluate the Valuation for NASDAQ:INCY?

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:INCY scores a 8 out of 10:

INCY's Price/Earnings ratio is rather cheap when compared to the industry. INCY is cheaper than 96.19% of the companies in the same industry.
INCY is valuated rather cheaply when we compare the Price/Earnings ratio to 23.86, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.70, which indicates a very decent valuation of INCY.
Based on the Price/Forward Earnings ratio, INCY is valued cheaper than 98.01% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 18.98. 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 96.02% 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 96.52% of the companies listed in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
INCY has a very decent profitability rating, which 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.

Health Assessment of NASDAQ:INCY

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:

An Altman-Z score of 6.51 indicates that INCY is not in any danger for bankruptcy at the moment.
INCY's Altman-Z score of 6.51 is amongst the best of the industry. INCY outperforms 84.08% 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.
The Debt to FCF ratio of INCY (0.05) is better than 97.35% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that INCY is not too dependend on debt financing.
INCY has a Current Ratio of 3.91. This indicates that INCY is financially healthy and has no problem in meeting its short term obligations.
INCY has a Quick Ratio of 3.86. This indicates that INCY is financially healthy and has no problem in meeting its short term obligations.

Assessing Profitability for NASDAQ:INCY

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:INCY has achieved a 7:

INCY's Return On Assets of 6.65% is amongst the best of the industry. INCY outperforms 95.52% of its industry peers.
With an excellent Return On Equity value of 8.62%, INCY belongs to the best of the industry, outperforming 95.19% of the companies in the same industry.
INCY has a better Return On Invested Capital (6.60%) than 95.69% of its industry peers.
INCY has a Profit Margin of 11.78%. This is amongst the best in the industry. INCY outperforms 95.85% of its industry peers.
INCY's Operating Margin of 14.96% is amongst the best of the industry. INCY outperforms 96.52% of its industry peers.
INCY has a Gross Margin of 93.84%. This is amongst the best in the industry. INCY outperforms 94.86% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.