NASDAQ:INCY is not too expensive for the growth it is showing.

Last update: Jul 1, 2024

Discover INCYTE CORP (NASDAQ:INCY), an undervalued growth gem identified by our stock screener. NASDAQ:INCY is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Growth Analysis for NASDAQ:INCY

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:INCY has earned a 7 for growth:

The Earnings Per Share has grown by an impressive 45.77% over the past year.
The Earnings Per Share has been growing by 27.86% on average over the past years. This is a very strong growth
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 17.88% on average per year.
The Revenue is expected to grow by 8.74% on average over the next years. This is quite good.

Assessing Valuation Metrics 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:

97.38% of the companies in the same industry are more expensive than INCY, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.36. INCY is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 11.12, the valuation of INCY can be described as very reasonable.
INCY's Price/Forward Earnings ratio is rather cheap when compared to the industry. INCY is cheaper than 97.03% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.16. INCY is valued slightly cheaper when compared to this.
Based on the Enterprise Value to EBITDA ratio, INCY is valued cheaper than 97.38% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, INCY is valued 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.

Health Insights: 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 6.19. This indicates that INCY is financially healthy and has little risk of bankruptcy at the moment.
INCY has a Altman-Z score of 6.19. This is amongst the best in the industry. INCY outperforms 81.85% 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 98.08% 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.

Profitability Assessment of 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's Return On Assets of 10.45% is amongst the best of the industry. INCY outperforms 97.56% of its industry peers.
INCY has a better Return On Equity (13.82%) than 96.86% of its industry peers.
INCY has a Return On Invested Capital of 8.44%. This is amongst the best in the industry. INCY outperforms 95.99% of its industry peers.
INCY's Profit Margin of 19.78% is amongst the best of the industry. INCY outperforms 97.91% of its industry peers.
INCY's Profit Margin has improved in the last couple of years.
INCY has a better Operating Margin (18.91%) than 96.86% of its industry peers.
In the last couple of years the Operating Margin of INCY has grown nicely.
INCY's Gross Margin of 93.73% is amongst the best of the industry. INCY outperforms 95.29% of its industry peers.

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

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.