Investors should take notice of NASDAQ:INCY—it offers a great deal for the fundamentals it presents.

Last update: Nov 14, 2023

INCYTE CORP (NASDAQ:INCY) was identified as a decent value stock by our stock screener. NASDAQ:INCY scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Assessing Valuation Metrics for NASDAQ:INCY

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:INCY has achieved a 8 out of 10:

Based on the Price/Earnings ratio, INCY is valued cheaper than 96.68% of the companies in the same industry.
INCY is valuated rather cheaply when we compare the Price/Earnings ratio to 23.95, which is the current average of the S&P500 Index.
INCY is valuated reasonably with a Price/Forward Earnings ratio of 11.34.
Compared to the rest of the industry, the Price/Forward Earnings ratio of INCY indicates a rather cheap valuation: INCY is cheaper than 98.18% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of INCY to the average of the S&P500 Index (18.79), we can say INCY is valued slightly cheaper.
INCY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. INCY is cheaper than 96.19% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of INCY indicates a rather cheap valuation: INCY is cheaper than 96.68% 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.
INCY has a very decent profitability rating, which may justify a higher PE ratio.
INCY's earnings are expected to grow with 29.50% in the coming years. This may justify a more expensive valuation.

A Closer Look at 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:

Looking at the Return On Assets, with a value of 6.65%, INCY belongs to the top of the industry, outperforming 95.85% of the companies in the same industry.
With an excellent Return On Equity value of 8.62%, INCY belongs to the best of the industry, outperforming 95.02% of the companies in the same industry.
The Return On Invested Capital of INCY (6.60%) is better than 95.52% of its industry peers.
INCY has a Profit Margin of 11.78%. This is amongst the best in the industry. INCY outperforms 96.02% of its industry peers.
INCY has a better Operating Margin (14.96%) than 96.35% of its industry peers.
Looking at the Gross Margin, with a value of 93.84%, INCY belongs to the top of the industry, outperforming 95.02% of the companies in the same industry.

Health Insights: NASDAQ:INCY

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:INCY has earned a 7 out of 10:

An Altman-Z score of 6.35 indicates that INCY is not in any danger for bankruptcy at the moment.
INCY has a Altman-Z score of 6.35. This is amongst the best in the industry. INCY outperforms 84.41% 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 97.35% 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 3.91 indicates that INCY has no problem at all paying 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.

How We Gauge Growth for NASDAQ:INCY

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:INCY has received a 7 out of 10:

INCY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.28%, which is quite impressive.
Looking at the last year, INCY shows a quite strong growth in Revenue. The Revenue has grown by 8.35% in the last year.
INCY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.18% yearly.
The Earnings Per Share is expected to grow by 25.74% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 11.19% on average over the next years. This is quite good.
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.

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

Our latest full fundamental report of INCY contains the most current fundamental analsysis.

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.