Looking for growth without the hefty price tag? Consider NASDAQ:INCY.

Last update: Jul 22, 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.

How do we evaluate the Growth for NASDAQ:INCY?

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:INCY scores 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.
The Earnings Per Share has been growing by 27.86% on average over the past years. This is a very strong growth
INCY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.58%.
The Revenue has been growing by 14.45% on average over the past years. This is quite good.
The Earnings Per Share is expected to grow by 17.88% on average over the next years. This is quite good.
Based on estimates for the next years, INCY will show a quite strong growth in Revenue. The Revenue will grow by 8.74% on average per year.

Analyzing Valuation Metrics

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:INCY boasts a 8 out of 10:

97.56% of the companies in the same industry are more expensive than INCY, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.69, INCY is valued a bit cheaper.
Compared to the rest of the industry, the Price/Forward Earnings ratio of INCY indicates a rather cheap valuation: INCY is cheaper than 96.86% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.54. INCY is valued slightly cheaper when compared to this.
Based on the Enterprise Value to EBITDA ratio, INCY is valued cheaper than 97.04% of the companies in the same industry.
98.43% of the companies in the same industry are more expensive than INCY, based on the Price/Free Cash Flow ratio.
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 23.18% in the coming years.

Exploring NASDAQ:INCY's Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:INCY, the assigned 7 for health provides valuable insights:

An Altman-Z score of 6.60 indicates that INCY is not in any danger for bankruptcy at the moment.
INCY has a better Altman-Z score (6.60) than 81.18% 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 98.26% 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 Analysis for 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:

INCY has a Return On Assets of 10.45%. This is amongst the best in the industry. INCY outperforms 97.39% of its industry peers.
With an excellent Return On Equity value of 13.82%, INCY belongs to the best of the industry, outperforming 96.86% of the companies in the same industry.
INCY's Return On Invested Capital of 8.44% is amongst the best of the industry. INCY outperforms 95.82% of its industry peers.
Looking at the Profit Margin, with a value of 19.78%, INCY belongs to the top of the industry, outperforming 97.91% 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 96.86% of its industry peers.
INCY's Operating Margin has improved in the last couple of years.
The Gross Margin of INCY (93.73%) is better than 95.12% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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

Disclaimer

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.