NASDAQ:INCY is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Jul 10, 2024

Uncover the potential of INCYTE CORP (NASDAQ:INCY) as our stock screener's choice for an undervalued stock. NASDAQ:INCY maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Assessing Valuation Metrics for NASDAQ:INCY

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:INCY has earned a 8 for valuation:

Based on the Price/Earnings ratio, INCY is valued cheaper than 97.55% of the companies in the same industry.
INCY is valuated rather cheaply when we compare the Price/Earnings ratio to 28.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.13 indicates a reasonable valuation of INCY.
97.20% 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 (20.17), we can say INCY is valued slightly cheaper.
Based on the Enterprise Value to EBITDA ratio, INCY is valued cheaper than 97.55% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, INCY is valued cheaply inside the industry as 98.60% of the companies are valued more expensively.
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.
INCY's earnings are expected to grow with 23.18% in the coming years. This may justify a more expensive valuation.

Exploring NASDAQ:INCY's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:INCY, the assigned 8 is a significant indicator of profitability:

INCY has a better Return On Assets (10.45%) than 97.55% of its industry peers.
INCY's Return On Equity of 13.82% is amongst the best of the industry. INCY outperforms 96.85% of its industry peers.
INCY's Return On Invested Capital of 8.44% is amongst the best of the industry. INCY outperforms 95.98% of its industry peers.
With an excellent Profit Margin value of 19.78%, INCY belongs to the best of the industry, outperforming 97.90% of the companies in the same industry.
INCY's Profit Margin has improved in the last couple of years.
The Operating Margin of INCY (18.91%) is better than 96.85% 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 95.28% of its industry peers.

Evaluating Health: NASDAQ:INCY

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:INCY, the assigned 7 reflects its health status:

An Altman-Z score of 6.20 indicates that INCY is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.20, INCY belongs to the top of the industry, outperforming 80.94% of the companies in the same industry.
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 has a better Debt to FCF ratio (0.04) than 98.25% 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.

How We Gauge Growth for NASDAQ:INCY

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.
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 17.88% on average per year.
INCY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.74% yearly.

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

For an up to date full fundamental analysis you can check the fundamental report of INCY

Keep in mind

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.