For those who appreciate value investing, NASDAQ:INCY is a compelling option with its solid fundamentals.

Last update: Dec 28, 2023

Discover INCYTE CORP (NASDAQ:INCY), an undervalued stock highlighted by our stock screener. NASDAQ:INCY showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Understanding NASDAQ:INCY's Valuation Score

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:INCY has earned a 8 for valuation:

96.66% of the companies in the same industry are more expensive than INCY, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of INCY to the average of the S&P500 Index (26.17), we can say INCY is valued slightly cheaper.
Based on the Price/Forward Earnings ratio, INCY is valued cheaply inside the industry as 97.83% of the companies are valued more expensively.
INCY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.06.
INCY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. INCY is cheaper than 95.33% of the companies in the same industry.
INCY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. INCY is cheaper than 96.33% of the companies 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 27.07% in the coming years. This may justify a more expensive valuation.

Profitability Assessment of NASDAQ:INCY

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 96.33% of its industry peers.
INCY has a better Return On Equity (8.62%) than 95.33% of its industry peers.
INCY has a better Return On Invested Capital (6.60%) than 95.83% of its industry peers.
INCY has a better Profit Margin (11.78%) than 96.49% of its industry peers.
The Operating Margin of INCY (14.96%) is better than 96.33% of its industry peers.
INCY has a better Gross Margin (93.84%) than 94.16% of its industry peers.

Understanding NASDAQ:INCY's Health

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 7.24 indicates that INCY is not in any danger for bankruptcy at the moment.
INCY has a better Altman-Z score (7.24) than 81.97% 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 97.50% 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.
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.

A Closer Look at Growth for NASDAQ:INCY

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.
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.
Based on estimates for the next years, INCY will show a very strong growth in Earnings Per Share. The EPS will grow by 24.61% on average per year.
Based on estimates for the next years, INCY will show a quite strong growth in Revenue. The Revenue will grow by 10.65% 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.

More Decent Value stocks can be found in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of INCY

Keep in mind

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.