NASDAQ:INCY, a growth stock which is not overvalued.

Last update: Mar 15, 2024

Here's INCYTE CORP (NASDAQ:INCY) for you, a growth stock our stock screener believes is undervalued. NASDAQ:INCY is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Unpacking NASDAQ:INCY's Growth Rating

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 26.62%, which is quite impressive.
INCY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.86% yearly.
The Revenue has grown by 8.87% 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 14.45% yearly.
Based on estimates for the next years, INCY will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.66% on average per year.
The Revenue is expected to grow by 8.13% on average over the next years. This is quite good.

Evaluating Valuation: NASDAQ:INCY

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:INCY boasts a 8 out of 10:

96.97% of the companies in the same industry are more expensive than INCY, based on the Price/Earnings ratio.
INCY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.77.
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 (22.11), we can say INCY is valued slightly cheaper.
97.64% of the companies in the same industry are more expensive than INCY, based on the Enterprise Value to EBITDA ratio.
95.96% of the companies in the same industry are more expensive than INCY, based on the Price/Free Cash Flow ratio.
INCY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
INCY has an outstanding 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 25.08% in the coming years.

What does the Health looks like for NASDAQ:INCY

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:INCY has received a 7 out of 10:

INCY has an Altman-Z score of 6.45. This indicates that INCY is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of INCY (6.45) is better than 80.98% 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.
INCY has a Debt to FCF ratio of 0.07. This is amongst the best in the industry. INCY outperforms 97.31% 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 3.75 indicates that INCY has no problem at all paying its short term obligations.
A Quick Ratio of 3.69 indicates that INCY has no problem at all paying its short term obligations.

Understanding NASDAQ:INCY's Profitability

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 8 out of 10:

INCY has a Return On Assets of 8.81%. This is amongst the best in the industry. INCY outperforms 97.14% of its industry peers.
Looking at the Return On Equity, with a value of 11.51%, INCY belongs to the top of the industry, outperforming 96.80% of the companies in the same industry.
INCY has a Return On Invested Capital of 8.00%. This is amongst the best in the industry. INCY outperforms 96.30% of its industry peers.
INCY has a better Profit Margin (16.17%) than 96.80% of its industry peers.
In the last couple of years the Profit Margin of INCY has grown nicely.
The Operating Margin of INCY (17.64%) is better than 96.63% of its industry peers.
In the last couple of years the Operating Margin of INCY has grown nicely.
INCY has a Gross Margin of 93.71%. This is amongst the best in the industry. INCY outperforms 95.12% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth 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 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.