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

INCYTE CORP (NASDAQ:INCY) has caught the attention of our stock screener as a great value stock. NASDAQ:INCY excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Unpacking NASDAQ:INCY's Valuation Rating

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:

• INCY's Price/Earnings ratio is rather cheap when compared to the industry. INCY is cheaper than 94.14% of the companies in the same industry.
• Based on the Price/Forward Earnings ratio of 11.79, the valuation of INCY can be described as reasonable.
• 97.16% of the companies in the same industry are more expensive than INCY, based on the Price/Forward Earnings ratio.
• Compared to an average S&P500 Price/Forward Earnings ratio of 23.58, INCY is valued a bit cheaper.
• Based on the Enterprise Value to EBITDA ratio, INCY is valued cheaper than 94.14% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, INCY is valued cheaply inside the industry as 93.61% 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.
• The decent profitability rating of INCY may justify a higher PE ratio.
• INCY's earnings are expected to grow with 87.36% in the coming years. This may justify a more expensive valuation.

Exploring NASDAQ:INCY's Profitability

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 7 is noteworthy for profitability:

• INCY has a Return On Assets of 0.60%. This is amongst the best in the industry. INCY outperforms 92.90% of its industry peers.
• INCY has a better Return On Equity (0.95%) than 93.61% of its industry peers.
• INCY's Return On Invested Capital of 2.32% is amongst the best of the industry. INCY outperforms 93.96% of its industry peers.
• The 3 year average ROIC (7.24%) for INCY is well above the current ROIC(2.32%). The reason for the recent decline needs to be investigated.
• INCY has a better Profit Margin (0.77%) than 93.25% of its industry peers.
• Looking at the Operating Margin, with a value of 2.63%, INCY belongs to the top of the industry, outperforming 93.78% of the companies in the same industry.
• Looking at the Gross Margin, with a value of 93.20%, INCY belongs to the top of the industry, outperforming 94.49% of the companies in the same industry.

Health Analysis 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 6 out of 10:

• INCY has an Altman-Z score of 5.02. This indicates that INCY is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 5.02, INCY belongs to the best of the industry, outperforming 80.46% of the companies in the same industry.
• The Debt to FCF ratio of INCY is 0.15, which is an excellent value as it means it would take INCY, only 0.15 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of INCY (0.15) is better than 96.98% 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.

Evaluating Growth: NASDAQ:INCY

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:INCY has received a 4 out of 10:

• Looking at the last year, INCY shows a quite strong growth in Revenue. The Revenue has grown by 14.76% in the last year.
• INCY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.46% yearly.
• Based on estimates for the next years, INCY will show a very strong growth in Earnings Per Share. The EPS will grow by 30.90% on average per year.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

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

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

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.