NASDAQ:INCY is showing decent growth, but is still valued reasonably.

Last update: Dec 19, 2023

Our stock screening tool has pinpointed INCYTE CORP (NASDAQ:INCY) as a growth stock that isn't overvalued. NASDAQ:INCY is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Growth Assessment of 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:

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.
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 24.61% yearly.
INCY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.65% 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.

A Closer Look at Valuation for NASDAQ:INCY

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:INCY was assigned a score of 8 for valuation:

Compared to the rest of the industry, the Price/Earnings ratio of INCY indicates a rather cheap valuation: INCY is cheaper than 96.18% of the companies listed in the same industry.
INCY is valuated rather cheaply when we compare the Price/Earnings ratio to 25.52, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio, INCY is valued cheaper than 97.84% of the companies in the same industry.
INCY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.10, which is the current average of the S&P500 Index.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of INCY indicates a rather cheap valuation: INCY is cheaper than 95.18% of the companies listed in the same industry.
INCY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. INCY is cheaper than 96.18% 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 27.07% in the coming years.

Assessing Health Metrics for NASDAQ:INCY

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:INCY has achieved a 7 out of 10:

INCY has an Altman-Z score of 7.05. This indicates that INCY is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of INCY (7.05) is better than 82.39% 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 has a better Debt to FCF ratio (0.05) than 97.51% 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.
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.

How do we evaluate the Profitability for NASDAQ:INCY?

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:INCY, the assigned 7 is a significant indicator of profitability:

INCY has a better Return On Assets (6.65%) than 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 Return On Invested Capital of 6.60%. This is amongst the best in the industry. INCY outperforms 95.85% of its industry peers.
INCY has a better Profit Margin (11.78%) than 96.51% of its industry peers.
INCY has a better Operating Margin (14.96%) than 96.35% of its industry peers.
INCY has a better Gross Margin (93.84%) than 94.19% of its industry peers.

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.

Keep in mind

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.