Despite its growth, NASDAQ:INCY remains within the realm of affordability.

Last update: Jun 10, 2024

INCYTE CORP (NASDAQ:INCY) was identified as an affordable growth stock by our stock screener. NASDAQ:INCY is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Growth Assessment of NASDAQ:INCY

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:INCY was assigned a score of 7 for growth:

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.
The Earnings Per Share has been growing by 27.86% on average over the past years. This is a very strong growth
The Revenue has grown by 8.58% 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.
INCY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.85% yearly.
INCY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.58% yearly.

Understanding NASDAQ:INCY's Valuation

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:

INCY's Price/Earnings ratio is rather cheap when compared to the industry. INCY is cheaper than 97.05% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.12. INCY is valued slightly cheaper when compared to this.
INCY is valuated reasonably with a Price/Forward Earnings ratio of 10.84.
Based on the Price/Forward Earnings ratio, INCY is valued cheaper than 97.23% of the companies in the same industry.
INCY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 19.99, which is the current average of the S&P500 Index.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of INCY indicates a rather cheap valuation: INCY is cheaper than 97.57% of the companies listed 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.
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 23.01% in the coming years.

Deciphering NASDAQ:INCY's Health Rating

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:

An Altman-Z score of 6.08 indicates that INCY is not in any danger for bankruptcy at the moment.
The Altman-Z score of INCY (6.08) is better than 80.42% of its industry peers.
The Debt to FCF ratio of INCY is 0.04, which is an excellent value as it means it would take INCY, only 0.04 years of fcf income to pay off all of its debts.
INCY's Debt to FCF ratio of 0.04 is amongst the best of the industry. INCY outperforms 98.09% of its industry peers.
INCY has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
A Current Ratio of 3.47 indicates that INCY has no problem at all paying 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.

Profitability Insights: NASDAQ:INCY

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:INCY, the assigned 8 is noteworthy for profitability:

Looking at the Return On Assets, with a value of 10.45%, INCY belongs to the top of the industry, outperforming 97.05% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.82%, INCY belongs to the top of the industry, outperforming 96.53% of the companies in the same industry.
INCY has a Return On Invested Capital of 8.44%. This is amongst the best in the industry. INCY outperforms 95.84% of its industry peers.
INCY has a Profit Margin of 19.78%. This is amongst the best in the industry. INCY outperforms 97.92% 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 96.71% of its industry peers.
INCY's Operating Margin has improved in the last couple of years.
INCY's Gross Margin of 93.73% is amongst the best of the industry. INCY outperforms 95.32% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

Disclaimer

This article should in no way be interpreted as advice. 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.