INCYTE CORP (INCY) Stock Fundamental Analysis
USA - NASDAQ:INCY - US45337C1027 - Common Stock
105.98 USD
+0.78 (+0.74%)
106.44 USD
+0.46 (+0.43%)
INCY gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 531 industry peers in the Biotechnology industry. INCY gets an excellent profitability rating and is at the same time showing great financial health properties. INCY is valued quite cheap, while showing a decent growth score. This is a good combination! This makes INCY very considerable for value and quality investing!
1. Profitability
1.1 Basic Checks
In the past year INCY was profitable.
INCY had a positive operating cash flow in the past year.
INCY had positive earnings in 4 of the past 5 years.
Of the past 5 years INCY 4 years had a positive operating cash flow.
1.2 Ratios
INCY has a better Return On Assets (18.78%) than 96.64% of its industry peers.
INCY has a better Return On Equity (25.55%) than 96.83% of its industry peers.
The Return On Invested Capital of INCY (19.88%) is better than 97.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for INCY is significantly below the industry average of 15.48%.
The last Return On Invested Capital (19.88%) for INCY is above the 3 year average (7.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.78% | ||
| ROE | 25.55% | ||
| ROIC | 19.88% |
ROA(3y)5.08%
ROA(5y)5.23%
ROE(3y)6.75%
ROE(5y)6.82%
ROIC(3y)7.24%
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 24.69%, INCY belongs to the best of the industry, outperforming 95.52% of the companies in the same industry.
In the last couple of years the Profit Margin of INCY has declined.
INCY's Operating Margin of 26.10% is amongst the best of the industry. INCY outperforms 95.71% of its industry peers.
INCY's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 93.47%, INCY belongs to the top of the industry, outperforming 93.47% of the companies in the same industry.
INCY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.1% | ||
| PM (TTM) | 24.69% | ||
| GM | 93.47% |
OM growth 3Y-50.23%
OM growth 5Y-33.03%
PM growth 3Y-71.07%
PM growth 5Y-48.24%
GM growth 3Y-0.87%
GM growth 5Y-0.53%
2. Health
2.1 Basic Checks
INCY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for INCY has been reduced compared to 1 year ago.
Compared to 5 years ago, INCY has less shares outstanding
INCY has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.35 indicates that INCY is not in any danger for bankruptcy at the moment.
INCY has a Altman-Z score of 9.35. This is amongst the best in the industry. INCY outperforms 83.02% of its industry peers.
The Debt to FCF ratio of INCY is 0.03, which is an excellent value as it means it would take INCY, only 0.03 years of fcf income to pay off all of its debts.
INCY's Debt to FCF ratio of 0.03 is amongst the best of the industry. INCY outperforms 96.64% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that INCY is not too dependend on debt financing.
INCY has a Debt to Equity ratio (0.01) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.03 | ||
| Altman-Z | 9.35 |
ROIC/WACC2.28
WACC8.74%
2.3 Liquidity
INCY has a Current Ratio of 3.20. This indicates that INCY is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.20, INCY is doing worse than 62.31% of the companies in the same industry.
A Quick Ratio of 3.13 indicates that INCY has no problem at all paying its short term obligations.
INCY has a Quick ratio of 3.13. This is comparable to the rest of the industry: INCY outperforms 40.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.2 | ||
| Quick Ratio | 3.13 |
3. Growth
3.1 Past
INCY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 575.79%, which is quite impressive.
Measured over the past years, INCY shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.21% on average per year.
INCY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.09%.
INCY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.46% yearly.
EPS 1Y (TTM)575.79%
EPS 3Y-21.7%
EPS 5Y-14.21%
EPS Q2Q%111.21%
Revenue 1Y (TTM)18.09%
Revenue growth 3Y12.41%
Revenue growth 5Y14.46%
Sales Q2Q%20.05%
3.2 Future
INCY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.50% yearly.
The Revenue is expected to grow by 0.60% on average over the next years.
EPS Next Y427.7%
EPS Next 2Y144.97%
EPS Next 3Y89.5%
EPS Next 5Y29.5%
Revenue Next Year18%
Revenue Next 2Y14.17%
Revenue Next 3Y12.54%
Revenue Next 5Y0.6%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
INCY is valuated correctly with a Price/Earnings ratio of 16.51.
95.52% 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 26.06, INCY is valued a bit cheaper.
INCY is valuated correctly with a Price/Forward Earnings ratio of 13.38.
Based on the Price/Forward Earnings ratio, INCY is valued cheaply inside the industry as 96.46% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of INCY to the average of the S&P500 Index (32.73), we can say INCY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.51 | ||
| Fwd PE | 13.38 |
4.2 Price Multiples
95.34% of the companies in the same industry are more expensive than INCY, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, INCY is valued cheaper than 95.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.29 | ||
| EV/EBITDA | 12.85 |
4.3 Compensation for Growth
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 89.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y144.97%
EPS Next 3Y89.5%
5. Dividend
5.1 Amount
INCY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
105.98
+0.78 (+0.74%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners103.23%
Inst Owner Change0.76%
Ins Owners1.85%
Ins Owner Change0.45%
Market Cap20.70B
Revenue(TTM)4.81B
Net Income(TTM)1.19B
Analysts73.33
Price Target87.59 (-17.35%)
Short Float %4.9%
Short Ratio5.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.23%
Min EPS beat(2)4.72%
Max EPS beat(2)33.74%
EPS beat(4)3
Avg EPS beat(4)10.09%
Min EPS beat(4)-10.01%
Max EPS beat(4)33.74%
EPS beat(8)3
Avg EPS beat(8)-1.54%
EPS beat(12)6
Avg EPS beat(12)-3.05%
EPS beat(16)7
Avg EPS beat(16)-8.28%
Revenue beat(2)2
Avg Revenue beat(2)5.08%
Min Revenue beat(2)3.45%
Max Revenue beat(2)6.72%
Revenue beat(4)4
Avg Revenue beat(4)3.8%
Min Revenue beat(4)1.09%
Max Revenue beat(4)6.72%
Revenue beat(8)5
Avg Revenue beat(8)1.4%
Revenue beat(12)7
Avg Revenue beat(12)0.24%
Revenue beat(16)9
Avg Revenue beat(16)0.48%
PT rev (1m)1.97%
PT rev (3m)5.62%
EPS NQ rev (1m)6.86%
EPS NQ rev (3m)6.43%
EPS NY rev (1m)10.4%
EPS NY rev (3m)17.82%
Revenue NQ rev (1m)2.53%
Revenue NQ rev (3m)2.76%
Revenue NY rev (1m)2.51%
Revenue NY rev (3m)5.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.51 | ||
| Fwd PE | 13.38 | ||
| P/S | 4.3 | ||
| P/FCF | 17.29 | ||
| P/OCF | 16.54 | ||
| P/B | 4.45 | ||
| P/tB | 4.73 | ||
| EV/EBITDA | 12.85 |
EPS(TTM)6.42
EY6.06%
EPS(NY)7.92
Fwd EY7.47%
FCF(TTM)6.13
FCFY5.78%
OCF(TTM)6.41
OCFY6.05%
SpS24.65
BVpS23.82
TBVpS22.41
PEG (NY)0.04
PEG (5Y)N/A
Graham Number58.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.78% | ||
| ROE | 25.55% | ||
| ROCE | 25.17% | ||
| ROIC | 19.88% | ||
| ROICexc | 48.14% | ||
| ROICexgc | 55.55% | ||
| OM | 26.1% | ||
| PM (TTM) | 24.69% | ||
| GM | 93.47% | ||
| FCFM | 24.87% |
ROA(3y)5.08%
ROA(5y)5.23%
ROE(3y)6.75%
ROE(5y)6.82%
ROIC(3y)7.24%
ROIC(5y)N/A
ROICexc(3y)25.32%
ROICexc(5y)N/A
ROICexgc(3y)31.6%
ROICexgc(5y)N/A
ROCE(3y)9.17%
ROCE(5y)N/A
ROICexgc growth 3Y-34.92%
ROICexgc growth 5Y-33.44%
ROICexc growth 3Y-36.33%
ROICexc growth 5Y-29.08%
OM growth 3Y-50.23%
OM growth 5Y-33.03%
PM growth 3Y-71.07%
PM growth 5Y-48.24%
GM growth 3Y-0.87%
GM growth 5Y-0.53%
F-Score7
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.03 | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 59.08% | ||
| Cap/Sales | 1.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.81% | ||
| Profit Quality | 100.71% | ||
| Current Ratio | 3.2 | ||
| Quick Ratio | 3.13 | ||
| Altman-Z | 9.35 |
F-Score7
WACC8.74%
ROIC/WACC2.28
Cap/Depr(3y)83.51%
Cap/Depr(5y)185.09%
Cap/Sales(3y)1.73%
Cap/Sales(5y)3.66%
Profit Quality(3y)367.72%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)575.79%
EPS 3Y-21.7%
EPS 5Y-14.21%
EPS Q2Q%111.21%
EPS Next Y427.7%
EPS Next 2Y144.97%
EPS Next 3Y89.5%
EPS Next 5Y29.5%
Revenue 1Y (TTM)18.09%
Revenue growth 3Y12.41%
Revenue growth 5Y14.46%
Sales Q2Q%20.05%
Revenue Next Year18%
Revenue Next 2Y14.17%
Revenue Next 3Y12.54%
Revenue Next 5Y0.6%
EBIT growth 1Y6374.01%
EBIT growth 3Y-44.05%
EBIT growth 5Y-23.34%
EBIT Next Year352.21%
EBIT Next 3Y84.5%
EBIT Next 5Y26.81%
FCF growth 1Y106.03%
FCF growth 3Y-24.05%
FCF growth 5Y-17.01%
OCF growth 1Y97.88%
OCF growth 3Y-23.52%
OCF growth 5Y-13.95%
INCYTE CORP / INCY FAQ
What is the fundamental rating for INCY stock?
ChartMill assigns a fundamental rating of 7 / 10 to INCY.
What is the valuation status for INCY stock?
ChartMill assigns a valuation rating of 8 / 10 to INCYTE CORP (INCY). This can be considered as Undervalued.
How profitable is INCYTE CORP (INCY) stock?
INCYTE CORP (INCY) has a profitability rating of 7 / 10.
What is the valuation of INCYTE CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for INCYTE CORP (INCY) is 16.51 and the Price/Book (PB) ratio is 4.45.
What is the earnings growth outlook for INCYTE CORP?
The Earnings per Share (EPS) of INCYTE CORP (INCY) is expected to grow by 427.7% in the next year.