Investors should take note of NASDAQ:INCY, a growth stock that remains attractively priced.

Last update: Nov 28, 2023

Take a closer look at INCYTE CORP (NASDAQ:INCY), an affordable growth stock uncovered by our stock screener. NASDAQ:INCY boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

How do we evaluate the Growth for NASDAQ:INCY?

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:INCY scores a 7 out of 10:

The Earnings Per Share has grown by an impressive 36.28% over the past year.
The Revenue has grown by 8.35% in the past year. This is quite good.
Measured over the past years, INCY shows a quite strong growth in Revenue. The Revenue has been growing by 17.18% on average per year.
The Earnings Per Share is expected to grow by 25.74% on average over the next years. This is a very strong growth
Based on estimates for the next years, INCY will show a quite strong growth in Revenue. The Revenue will grow by 11.19% on average per year.
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.

A Closer Look at Valuation 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 96.66% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.49, INCY is valued a bit cheaper.
With a Price/Forward Earnings ratio of 11.28, the valuation of INCY can be described as very reasonable.
Based on the Price/Forward Earnings ratio, INCY is valued cheaper than 98.16% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of INCY to the average of the S&P500 Index (19.61), we can say INCY is valued slightly cheaper.
Based on the Enterprise Value to EBITDA ratio, INCY is valued cheaply inside the industry as 96.15% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, INCY is valued cheaper than 96.49% of the companies 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.

Analyzing Health Metrics

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:

INCY has an Altman-Z score of 6.33. This indicates that INCY is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of INCY (6.33) is better than 83.78% 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.
Looking at the Debt to FCF ratio, with a value of 0.05, INCY belongs to the top of the industry, outperforming 97.49% of the companies in the same industry.
INCY has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
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.

Profitability Examination 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 96.32% of its industry peers.
The Return On Equity of INCY (8.62%) is better than 95.32% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.60%, INCY belongs to the top of the industry, outperforming 95.82% of the companies in the same industry.
INCY has a Profit Margin of 11.78%. This is amongst the best in the industry. INCY outperforms 96.49% of its industry peers.
INCY has a Operating Margin of 14.96%. This is amongst the best in the industry. INCY outperforms 96.32% of its industry peers.
Looking at the Gross Margin, with a value of 93.84%, INCY belongs to the top of the industry, outperforming 94.15% of the companies in the same industry.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

Disclaimer

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.