Despite its impressive fundamentals, NASDAQ:INCY remains undervalued.

Last update: Nov 20, 2024

Uncover the hidden value in INCYTE CORP (NASDAQ:INCY) as our stock screening tool recommends it as an undervalued choice. NASDAQ:INCY maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Deciphering NASDAQ:INCY's Valuation Rating

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 7 out of 10:

INCY's Price/Earnings ratio is rather cheap when compared to the industry. INCY is cheaper than 93.94% of the companies in the same industry.
The Price/Forward Earnings ratio is 11.27, which indicates a very decent valuation of INCY.
INCY's Price/Forward Earnings ratio is rather cheap when compared to the industry. INCY is cheaper than 97.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of INCY to the average of the S&P500 Index (23.52), we can say INCY is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, INCY is valued cheaper than 93.40% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of INCY indicates a rather cheap valuation: INCY is cheaper than 92.69% of the companies listed in the same industry.
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 30.93% in the coming years.

A Closer Look at Profitability 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:

Looking at the Return On Assets, with a value of 0.65%, INCY belongs to the top of the industry, outperforming 92.69% of the companies in the same industry.
INCY has a Return On Equity of 1.02%. This is amongst the best in the industry. INCY outperforms 93.58% of its industry peers.
INCY has a Return On Invested Capital of 0.38%. This is amongst the best in the industry. INCY outperforms 93.05% of its industry peers.
The 3 year average ROIC (9.11%) for INCY is well above the current ROIC(0.38%). The reason for the recent decline needs to be investigated.
With an excellent Profit Margin value of 0.80%, INCY belongs to the best of the industry, outperforming 93.05% of the companies in the same industry.
In the last couple of years the Profit Margin of INCY has grown nicely.
Looking at the Operating Margin, with a value of 0.48%, INCY belongs to the top of the industry, outperforming 93.23% of the companies in the same industry.
In the last couple of years the Operating Margin of INCY has grown nicely.
INCY has a better Gross Margin (93.37%) than 94.47% of its industry peers.

Evaluating Health: NASDAQ:INCY

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:INCY was assigned a score of 7 for health:

INCY has an Altman-Z score of 5.21. This indicates that INCY is financially healthy and has little risk of bankruptcy at the moment.
INCY's Altman-Z score of 5.21 is amongst the best of the industry. INCY outperforms 80.04% of its industry peers.
The Debt to FCF ratio of INCY is 1.05, which is an excellent value as it means it would take INCY, only 1.05 years of fcf income to pay off all of its debts.
INCY's Debt to FCF ratio of 1.05 is amongst the best of the industry. INCY outperforms 95.90% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that INCY is not too dependend on debt financing.
The current and quick ratio evaluation for INCY is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

How We Gauge Growth for NASDAQ:INCY

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:INCY, the assigned 6 reflects its growth potential:

INCY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.86% yearly.
The Revenue has grown by 12.94% in the past year. This is quite good.
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 17.88% yearly.
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.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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.