NASDAQ:INCY is probably undervalued for the fundamentals it is displaying.

Last update: Jan 19, 2024

INCYTE CORP (NASDAQ:INCY) was identified as a decent value stock by our stock screener. NASDAQ:INCY scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Valuation Assessment of 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 cheaply inside the industry as 96.97% of the companies are valued more expensively.
INCY is valuated rather cheaply when we compare the Price/Earnings ratio to 25.64, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio, INCY is valued cheaper than 98.15% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of INCY to the average of the S&P500 Index (20.61), we can say INCY is valued slightly cheaper.
Based on the Enterprise Value to EBITDA ratio, INCY is valued cheaper than 95.12% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, INCY is valued cheaply inside the industry as 96.30% of the companies are valued more expensively.
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.

Profitability Assessment of NASDAQ:INCY

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:INCY, the assigned 7 is noteworthy for profitability:

The Return On Assets of INCY (6.65%) is better than 96.46% 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 95.62% of the companies in the same industry.
INCY has a Return On Invested Capital of 6.60%. This is amongst the best in the industry. INCY outperforms 95.79% of its industry peers.
INCY has a better Profit Margin (11.78%) than 96.63% of its industry peers.
Looking at the Operating Margin, with a value of 14.96%, INCY belongs to the top of the industry, outperforming 96.46% of the companies in the same industry.
INCY has a Gross Margin of 93.84%. This is amongst the best in the industry. INCY outperforms 94.28% of its industry peers.

Health Analysis for 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:

INCY has an Altman-Z score of 7.10. This indicates that INCY is financially healthy and has little risk of bankruptcy at the moment.
INCY has a Altman-Z score of 7.10. This is amongst the best in the industry. INCY outperforms 81.65% of its industry peers.
INCY has a debt to FCF ratio of 0.05. This is a very positive value and a sign of high solvency as it would only need 0.05 years to pay back of all of its debts.
INCY's Debt to FCF ratio of 0.05 is amongst the best of the industry. INCY outperforms 97.47% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that INCY is not too dependend on debt financing.
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.

Growth Assessment of 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:

INCY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.28%, which is quite impressive.
The Revenue has grown by 8.35% in the past year. This is quite good.
INCY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.18% yearly.
The Earnings Per Share is expected to grow by 24.61% 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 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.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

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.