In the world of growth stocks, NASDAQ:INCY shines as a value proposition.

Last update: Jan 10, 2024

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.

What does the Growth looks like 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.
INCY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.35%.
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.
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.

Analyzing Valuation Metrics

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:INCY scores a 7 out of 10:

INCY's Price/Earnings ratio is rather cheap when compared to the industry. INCY is cheaper than 96.79% of the companies in the same industry.
97.97% of the companies in the same industry are more expensive than INCY, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.76. INCY is valued slightly cheaper when compared to this.
Based on the Enterprise Value to EBITDA ratio, INCY is valued cheaply inside the industry as 95.26% of the companies are valued more expensively.
96.45% 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.
The decent profitability rating of INCY 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.

Health Assessment of NASDAQ:INCY

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:INCY, the assigned 7 for health provides valuable insights:

INCY has an Altman-Z score of 7.39. This indicates that INCY is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.39, INCY belongs to the top of the industry, outperforming 81.22% 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.
INCY has a Debt to FCF ratio of 0.05. This is amongst the best in the industry. INCY outperforms 97.46% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that INCY is not too dependend on debt financing.
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.

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 has a Return On Assets of 6.65%. This is amongst the best in the industry. INCY outperforms 96.62% of its industry peers.
Looking at the Return On Equity, with a value of 8.62%, INCY belongs to the top of the industry, outperforming 95.60% of the companies in the same industry.
INCY's Return On Invested Capital of 6.60% is amongst the best of the industry. INCY outperforms 95.94% of its industry peers.
Looking at the Profit Margin, with a value of 11.78%, INCY belongs to the top of the industry, outperforming 96.62% of the companies in the same industry.
Looking at the Operating Margin, with a value of 14.96%, INCY belongs to the top of the industry, outperforming 96.45% of the companies in the same industry.
INCY's Gross Margin of 93.84% is amongst the best of the industry. INCY outperforms 94.08% of its industry peers.

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