Despite its impressive fundamentals, NASDAQ:INCY remains undervalued.

Last update: Dec 6, 2023

Discover INCYTE CORP (NASDAQ:INCY)—an undervalued stock our stock screener has picked out. NASDAQ:INCY demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Valuation Examination 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:

INCY's Price/Earnings ratio is rather cheap when compared to the industry. INCY is cheaper than 96.84% of the companies in the same industry.
INCY is valuated rather cheaply when we compare the Price/Earnings ratio to 24.81, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.70, the valuation of INCY can be described as reasonable.
98.17% of the companies in the same industry are more expensive than INCY, based on the Price/Forward Earnings ratio.
INCY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 19.91.
INCY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. INCY is cheaper than 95.85% of the companies in the same industry.
96.51% of the companies in the same industry are more expensive than INCY, based on the Price/Free Cash Flow ratio.
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.
INCY's earnings are expected to grow with 29.50% in the coming years. This may justify a more expensive valuation.

Analyzing Profitability Metrics

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:INCY scores a 7 out of 10:

INCY has a Return On Assets of 6.65%. This is amongst the best in the industry. INCY outperforms 96.35% of its industry peers.
INCY has a Return On Equity of 8.62%. This is amongst the best in the industry. INCY outperforms 95.35% of its industry peers.
INCY has a better Return On Invested Capital (6.60%) than 95.85% of its industry peers.
With an excellent Profit Margin value of 11.78%, INCY belongs to the best of the industry, outperforming 96.51% of the companies in the same industry.
INCY has a better Operating Margin (14.96%) than 96.35% of its industry peers.
INCY has a Gross Margin of 93.84%. This is amongst the best in the industry. INCY outperforms 94.19% of its industry peers.

Health Assessment of NASDAQ:INCY

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:INCY, the assigned 7 reflects its health status:

An Altman-Z score of 6.51 indicates that INCY is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.51, INCY belongs to the best of the industry, outperforming 83.89% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 0.05, INCY belongs to the best of the industry, outperforming 97.51% 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.
A Quick Ratio of 3.86 indicates that INCY has no problem at all paying its short term obligations.

What does the Growth looks like for NASDAQ:INCY

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:INCY, the assigned 7 reflects its growth potential:

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.
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.