NASDAQ:INCY appears to be flying under the radar despite its strong fundamentals.

Last update: May 8, 2024

Discover INCYTE CORP (NASDAQ:INCY), an undervalued stock highlighted by our stock screener. NASDAQ:INCY showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Valuation Assessment of 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 9 out of 10:

Compared to the rest of the industry, the Price/Earnings ratio of INCY indicates a rather cheap valuation: INCY is cheaper than 97.61% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of INCY to the average of the S&P500 Index (28.11), we can say INCY is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 9.89, the valuation of INCY can be described as reasonable.
INCY's Price/Forward Earnings ratio is rather cheap when compared to the industry. INCY is cheaper than 98.80% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of INCY to the average of the S&P500 Index (20.39), we can say INCY is valued rather cheaply.
INCY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. INCY is cheaper than 97.95% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, INCY is valued cheaper than 97.61% 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.

What does the Profitability looks like for NASDAQ:INCY

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:INCY has achieved a 8:

With an excellent Return On Assets value of 10.45%, INCY belongs to the best of the industry, outperforming 97.27% of the companies in the same industry.
INCY's Return On Equity of 13.82% is amongst the best of the industry. INCY outperforms 96.75% of its industry peers.
With an excellent Return On Invested Capital value of 8.44%, INCY belongs to the best of the industry, outperforming 96.58% of the companies in the same industry.
INCY has a Profit Margin of 19.78%. This is amongst the best in the industry. INCY outperforms 97.61% of its industry peers.
INCY's Profit Margin has improved in the last couple of years.
The Operating Margin of INCY (18.91%) is better than 96.92% of its industry peers.
In the last couple of years the Operating Margin of INCY has grown nicely.
INCY has a Gross Margin of 93.73%. This is amongst the best in the industry. INCY outperforms 94.70% of its industry peers.

Deciphering NASDAQ:INCY's Health Rating

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:INCY has achieved a 7 out of 10:

An Altman-Z score of 5.69 indicates that INCY is not in any danger for bankruptcy at the moment.
INCY has a Altman-Z score of 5.69. This is amongst the best in the industry. INCY outperforms 80.51% of its industry peers.
INCY has a debt to FCF ratio of 0.04. This is a very positive value and a sign of high solvency as it would only need 0.04 years to pay back of all of its debts.
INCY's Debt to FCF ratio of 0.04 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 3.47 indicates that INCY has no problem at all paying its short term obligations.
A Quick Ratio of 3.43 indicates that INCY has no problem at all paying its short term obligations.

Looking at the Growth

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:INCY boasts a 7 out of 10:

INCY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.77%, which is quite impressive.
Measured over the past years, INCY shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.86% on average per year.
Looking at the last year, INCY shows a quite strong growth in Revenue. The Revenue has grown by 8.58% in the last year.
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 17.85% on average per year.
Based on estimates for the next years, INCY will show a quite strong growth in Revenue. The Revenue will grow by 8.58% on average per year.

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.