Despite its impressive fundamentals, NASDAQ:INCY remains undervalued.

Last update: Feb 12, 2024

Uncover the hidden value in INCYTE CORP (NASDAQ:INCY) as our stock screening tool recommends it as an undervalued choice. NASDAQ:INCY maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Looking at the Valuation

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 8 out of 10:

97.12% of the companies in the same industry are more expensive than INCY, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.94. INCY is valued slightly cheaper when compared to this.
Compared to the rest of the industry, the Price/Forward Earnings ratio of INCY indicates a rather cheap valuation: INCY is cheaper than 97.80% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.56, INCY is valued a bit cheaper.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of INCY indicates a rather cheap valuation: INCY is cheaper than 95.26% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, INCY is valued cheaply inside the industry as 96.45% of the companies are valued more expensively.
INCY's 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 26.42% in the coming years. This may justify a more expensive valuation.

Profitability Examination for NASDAQ:INCY

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:INCY was assigned a score of 7 for profitability:

INCY's Return On Assets of 6.65% is amongst the best of the industry. INCY outperforms 96.45% of its industry peers.
INCY's Return On Equity of 8.62% is amongst the best of the industry. INCY outperforms 95.60% of its industry peers.
The Return On Invested Capital of INCY (6.60%) is better than 95.77% of its industry peers.
INCY's Profit Margin of 11.78% is amongst the best of the industry. INCY outperforms 96.62% of its industry peers.
Looking at the Operating Margin, with a value of 14.96%, INCY belongs to the top of the industry, outperforming 96.45% 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 94.25% of its industry peers.

Health Analysis for NASDAQ:INCY

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 6.77 indicates that INCY is not in any danger for bankruptcy at the moment.
INCY's Altman-Z score of 6.77 is amongst the best of the industry. INCY outperforms 80.54% 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 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.

Growth Insights: 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%.
INCY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.18% yearly.
INCY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.61% yearly.
The Revenue is expected to grow by 10.82% on average over the next years. This is quite good.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.