For those who appreciate value investing, NASDAQ:INCY is a compelling option with its solid fundamentals.

Last update: Jun 19, 2024

Consider INCYTE CORP (NASDAQ:INCY) as a top value stock, identified by our stock screening tool. NASDAQ:INCY shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Assessing Valuation 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 97.03% of the companies are valued more expensively.
INCY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.73.
Based on the Price/Forward Earnings ratio of 11.27, 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 96.86% 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 20.21.
Based on the Enterprise Value to EBITDA ratio, INCY is valued cheaper than 97.21% 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 98.43% 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 23.18% in the coming years.

Exploring NASDAQ:INCY's Profitability

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's Return On Assets of 10.45% is amongst the best of the industry. INCY outperforms 97.21% of its industry peers.
With an excellent Return On Equity value of 13.82%, INCY belongs to the best of the industry, outperforming 96.51% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.44%, INCY belongs to the top of the industry, outperforming 95.81% of the companies in the same industry.
INCY has a better Profit Margin (19.78%) than 97.91% of its industry peers.
In the last couple of years the Profit Margin of INCY has grown nicely.
INCY has a better Operating Margin (18.91%) than 96.68% 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 95.29% of its industry peers.

Assessing Health for NASDAQ:INCY

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:

INCY has an Altman-Z score of 6.26. This indicates that INCY is financially healthy and has little risk of bankruptcy at the moment.
INCY's Altman-Z score of 6.26 is amongst the best of the industry. INCY outperforms 81.15% 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.
The Debt to FCF ratio of INCY (0.04) is better than 98.08% 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.

How do we evaluate the Growth for NASDAQ:INCY?

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:

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.
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 8.58%.
Measured over the past years, INCY shows a quite strong growth in Revenue. The Revenue has been growing by 14.45% on average per year.
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.

More Decent Value stocks can be found in our Decent Value screener.

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.