NASDAQ:INCY stands out as a growth opportunity that won't break the bank.

Last update: Feb 22, 2024

Take a closer look at INCYTE CORP (NASDAQ:INCY), an affordable growth stock uncovered by our stock screener. NASDAQ:INCY boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Analyzing Growth Metrics

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:INCY, the assigned 7 reflects its growth potential:

The Earnings Per Share has grown by an impressive 26.62% over the past year.
INCY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.86% yearly.
INCY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.87%.
Measured over the past years, INCY shows a quite strong growth in Revenue. The Revenue has been growing by 14.45% on average per year.
The Earnings Per Share is expected to grow by 18.66% on average over the next years. This is quite good.
Based on estimates for the next years, INCY will show a quite strong growth in Revenue. The Revenue will grow by 8.14% on average per year.

Evaluating Valuation: NASDAQ:INCY

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:

Compared to the rest of the industry, the Price/Earnings ratio of INCY indicates a rather cheap valuation: INCY is cheaper than 97.30% of the companies listed in the same industry.
INCY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.00.
INCY's Price/Forward Earnings ratio is rather cheap when compared to the industry. INCY is cheaper than 97.80% of the companies in the same industry.
INCY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, INCY is valued cheaply inside the industry as 96.96% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of INCY indicates a rather cheap valuation: INCY is cheaper than 95.78% of the companies listed in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of INCY may justify a higher PE ratio.
A more expensive valuation may be justified as INCY's earnings are expected to grow with 26.98% in the coming years.

Unpacking NASDAQ:INCY's Health Rating

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:INCY has earned a 6 out of 10:

INCY has an Altman-Z score of 6.59. This indicates that INCY is financially healthy and has little risk of bankruptcy at the moment.
INCY has a Altman-Z score of 6.59. This is in the better half of the industry: INCY outperforms 79.56% of its industry peers.
The Debt to FCF ratio of INCY is 0.07, which is an excellent value as it means it would take INCY, only 0.07 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.07, INCY belongs to the top of the industry, outperforming 97.47% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that INCY is not too dependend on debt financing.
INCY has a Current Ratio of 3.75. This indicates that INCY is financially healthy and has no problem in meeting its short term obligations.
A Quick Ratio of 3.69 indicates that INCY has no problem at all paying its short term obligations.

A Closer Look at Profitability for NASDAQ:INCY

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:INCY has earned a 8 out of 10:

INCY has a better Return On Assets (8.81%) than 96.96% of its industry peers.
With an excellent Return On Equity value of 11.51%, INCY belongs to the best of the industry, outperforming 96.45% of the companies in the same industry.
With an excellent Return On Invested Capital value of 8.00%, INCY belongs to the best of the industry, outperforming 95.95% of the companies in the same industry.
INCY's Profit Margin of 16.17% is amongst the best of the industry. INCY outperforms 96.96% of its industry peers.
In the last couple of years the Profit Margin of INCY has grown nicely.
INCY has a better Operating Margin (17.64%) than 96.62% of its industry peers.
INCY's Operating Margin has improved in the last couple of years.
INCY has a Gross Margin of 93.71%. This is amongst the best in the industry. INCY outperforms 94.26% of its industry peers.

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

Our latest full fundamental report of INCY contains the most current fundamental analsysis.

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.