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

Last update: May 29, 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.

What does the Valuation looks like for NASDAQ:INCY

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:INCY has achieved a 8 out of 10:

Based on the Price/Earnings ratio, INCY is valued cheaply inside the industry as 96.89% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.20, INCY is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 10.49, the valuation of INCY can be described as reasonable.
97.41% of the companies in the same industry are more expensive than INCY, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of INCY to the average of the S&P500 Index (20.02), we can say INCY is valued slightly cheaper.
INCY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. INCY is cheaper than 97.75% of the companies in the same industry.
INCY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. INCY is cheaper than 98.27% 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.
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 23.01% in the coming years.

How do we evaluate the 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's Return On Assets of 10.45% is amongst the best of the industry. INCY outperforms 97.06% of its industry peers.
The Return On Equity of INCY (13.82%) is better than 96.37% of its industry peers.
With an excellent Return On Invested Capital value of 8.44%, INCY belongs to the best of the industry, outperforming 95.85% of the companies in the same industry.
Looking at the Profit Margin, with a value of 19.78%, INCY belongs to the top of the industry, outperforming 97.93% of the companies in the same industry.
In the last couple of years the Profit Margin of INCY has grown nicely.
The Operating Margin of INCY (18.91%) is better than 96.89% of its industry peers.
In the last couple of years the Operating Margin of INCY has grown nicely.
The Gross Margin of INCY (93.73%) is better than 95.34% of its industry peers.

ChartMill's Evaluation of Health

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 7 out of 10:

An Altman-Z score of 5.93 indicates that INCY is not in any danger for bankruptcy at the moment.
INCY has a Altman-Z score of 5.93. This is amongst the best in the industry. INCY outperforms 80.31% 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 has a better Debt to FCF ratio (0.04) than 98.10% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that INCY is not too dependend on debt financing.
INCY has a Current Ratio of 3.47. This indicates that INCY is financially healthy and has no problem in meeting its short term obligations.
INCY has a Quick Ratio of 3.43. This indicates that INCY is financially healthy and has no problem in meeting its short term obligations.

Understanding NASDAQ:INCY's Growth Score

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:

The Earnings Per Share has grown by an impressive 45.77% 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.
The Revenue has grown by 8.58% in the past year. This is quite good.
The Revenue has been growing by 14.45% on average over the past years. This is quite good.
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.
INCY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.58% yearly.

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Check the latest full fundamental report of INCY for a complete fundamental analysis.

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.