When you look at NASDAQ:INCY, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Take a closer look at INCYTE CORP (NASDAQ:INCY), a remarkable value stock uncovered by our stock screener. NASDAQ:INCY excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

Valuation Analysis for NASDAQ:INCY

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:INCY has received a 8 out of 10:

• Based on the Price/Earnings ratio, INCY is valued cheaper than 97.27% of the companies in the same industry.
• INCY is valuated rather cheaply when we compare the Price/Earnings ratio to 24.93, which is the current average of the S&P500 Index.
• A Price/Forward Earnings ratio of 11.48 indicates a reasonable valuation of INCY.
• INCY's Price/Forward Earnings ratio is rather cheap when compared to the industry. INCY is cheaper than 98.12% of the companies in the same industry.
• INCY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.41.
• INCY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. INCY is cheaper than 97.61% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, INCY is valued cheaper than 96.07% of the companies 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 24.94% in the coming years.

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 8 for profitability:

• INCY has a Return On Assets of 8.81%. This is amongst the best in the industry. INCY outperforms 96.92% of its industry peers.
• INCY has a Return On Equity of 11.51%. This is amongst the best in the industry. INCY outperforms 96.58% of its industry peers.
• INCY's Return On Invested Capital of 8.00% is amongst the best of the industry. INCY outperforms 96.41% of its industry peers.
• INCY has a Profit Margin of 16.17%. This is amongst the best in the industry. INCY outperforms 97.09% of its industry peers.
• In the last couple of years the Profit Margin of INCY has grown nicely.
• Looking at the Operating Margin, with a value of 17.64%, INCY belongs to the top of the industry, outperforming 96.75% of the companies in the same industry.
• INCY's Operating Margin has improved in the last couple of years.
• Looking at the Gross Margin, with a value of 93.71%, INCY belongs to the top of the industry, outperforming 95.21% of the companies in the same industry.

Assessing Health Metrics 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 6.00 indicates that INCY is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 6.00, INCY belongs to the best of the industry, outperforming 81.54% of the companies in the same industry.
• 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's Debt to FCF ratio of 0.07 is amongst the best of the industry. INCY outperforms 97.78% 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.

ChartMill's Evaluation of Growth

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:INCY has achieved a 7 out of 10:

• 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%.
• 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.
• INCY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.13% yearly.

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

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

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.