INCYTE CORP (INCY) Stock Fundamental Analysis
NASDAQ:INCY - Nasdaq - US45337C1027 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to INCY. INCY was compared to 557 industry peers in the Biotechnology industry. INCY gets an excellent profitability rating and is at the same time showing great financial health properties. A decent growth rate in combination with a cheap valuation! Better keep an eye on INCY. These ratings could make INCY a good candidate for value 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.
Of the past 5 years INCY 4 years were profitable.
INCY had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of INCY (0.37%) is better than 89.95% of its industry peers.
INCY has a better Return On Equity (0.58%) than 91.20% of its industry peers.
With an excellent Return On Invested Capital value of 4.67%, INCY belongs to the best of the industry, outperforming 93.00% of the companies in the same industry.
INCY had an Average Return On Invested Capital over the past 3 years of 7.24%. This is significantly below the industry average of 14.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.37% | ||
| ROE | 0.58% | ||
| ROIC | 4.67% |
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
INCY's Profit Margin of 0.48% is amongst the best of the industry. INCY outperforms 90.66% of its industry peers.
INCY's Profit Margin has declined in the last couple of years.
INCY has a Operating Margin of 5.39%. This is amongst the best in the industry. INCY outperforms 92.82% 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 93.19%, INCY belongs to the top of the industry, outperforming 93.90% 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 | 5.39% | ||
| PM (TTM) | 0.48% | ||
| GM | 93.19% |
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 below the Cost of Capital (WACC), which means it is destroying 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
The debt/assets ratio for INCY is higher compared to a year ago.
2.2 Solvency
INCY has an Altman-Z score of 4.98. This indicates that INCY is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.98, INCY is in the better half of the industry, outperforming 76.84% of the companies in the same industry.
The Debt to FCF ratio of INCY is 0.12, which is an excellent value as it means it would take INCY, only 0.12 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of INCY (0.12) is better than 96.41% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that INCY is not too dependend on debt financing.
INCY's Debt to Equity ratio of 0.01 is in line compared to the rest of the industry. INCY outperforms 42.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.12 | ||
| Altman-Z | 4.98 |
ROIC/WACC0.48
WACC9.7%
2.3 Liquidity
A Current Ratio of 2.04 indicates that INCY has no problem at all paying its short term obligations.
INCY's Current ratio of 2.04 is on the low side compared to the rest of the industry. INCY is outperformed by 75.04% of its industry peers.
INCY has a Quick Ratio of 2.00. This indicates that INCY is financially healthy and has no problem in meeting its short term obligations.
INCY has a worse Quick ratio (2.00) than 73.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
INCY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -51.45%.
The earnings per share for INCY have been decreasing by -14.21% on average. This is quite bad
The Revenue has grown by 17.13% 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 14.46% on average per year.
EPS 1Y (TTM)-51.45%
EPS 3Y-21.7%
EPS 5Y-14.21%
EPS Q2Q%81.25%
Revenue 1Y (TTM)17.13%
Revenue growth 3Y12.41%
Revenue growth 5Y14.46%
Sales Q2Q%19.53%
3.2 Future
INCY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.71% yearly.
INCY is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.42% yearly.
EPS Next Y348.12%
EPS Next 2Y129.86%
EPS Next 3Y87.87%
EPS Next 5Y26.71%
Revenue Next Year12.22%
Revenue Next 2Y11.28%
Revenue Next 3Y10.65%
Revenue Next 5Y-0.42%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 37.28, INCY can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of INCY indicates a rather cheap valuation: INCY is cheaper than 93.36% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. INCY is valued slightly more expensive when compared to this.
INCY is valuated reasonably with a Price/Forward Earnings ratio of 9.83.
Based on the Price/Forward Earnings ratio, INCY is valued cheaply inside the industry as 96.59% of the companies are valued more expensively.
INCY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.28 | ||
| Fwd PE | 9.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, INCY is valued cheaper than 92.82% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, INCY is valued cheaply inside the industry as 93.18% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.86 | ||
| EV/EBITDA | 31.47 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
INCY has a very decent 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 87.87% in the coming years.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y129.86%
EPS Next 3Y87.87%
5. Dividend
5.1 Amount
No dividends for INCY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
68.59
-1.75 (-2.49%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners100.37%
Inst Owner Change-0.01%
Ins Owners2%
Ins Owner Change7.27%
Market Cap13.28B
Analysts75.76
Price Target77.59 (13.12%)
Short Float %4.33%
Short Ratio4.18
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)1
Avg EPS beat(2)0.95%
Min EPS beat(2)-10.01%
Max EPS beat(2)11.9%
EPS beat(4)1
Avg EPS beat(4)-3.77%
Min EPS beat(4)-14.75%
Max EPS beat(4)11.9%
EPS beat(8)3
Avg EPS beat(8)-3.5%
EPS beat(12)5
Avg EPS beat(12)-5.19%
EPS beat(16)7
Avg EPS beat(16)-6.87%
Revenue beat(2)2
Avg Revenue beat(2)2.51%
Min Revenue beat(2)1.09%
Max Revenue beat(2)3.94%
Revenue beat(4)3
Avg Revenue beat(4)2.09%
Min Revenue beat(4)-0.21%
Max Revenue beat(4)3.94%
Revenue beat(8)4
Avg Revenue beat(8)-0.33%
Revenue beat(12)6
Avg Revenue beat(12)-0.19%
Revenue beat(16)9
Avg Revenue beat(16)0.35%
PT rev (1m)2.72%
PT rev (3m)1.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.75%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)-0.62%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.28 | ||
| Fwd PE | 9.83 | ||
| P/S | 3.01 | ||
| P/FCF | 43.86 | ||
| P/OCF | 34.7 | ||
| P/B | 3.62 | ||
| P/tB | 3.9 | ||
| EV/EBITDA | 31.47 |
EPS(TTM)1.84
EY2.68%
EPS(NY)6.97
Fwd EY10.17%
FCF(TTM)1.56
FCFY2.28%
OCF(TTM)1.98
OCFY2.88%
SpS22.8
BVpS18.95
TBVpS17.59
PEG (NY)0.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.37% | ||
| ROE | 0.58% | ||
| ROCE | 5.91% | ||
| ROIC | 4.67% | ||
| ROICexc | 16.3% | ||
| ROICexgc | 21.12% | ||
| OM | 5.39% | ||
| PM (TTM) | 0.48% | ||
| GM | 93.19% | ||
| FCFM | 6.86% |
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
ROICexcg growth 3Y-34.92%
ROICexcg 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-Score5
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.12 | ||
| Debt/EBITDA | 0.1 | ||
| Cap/Depr | 89.09% | ||
| Cap/Sales | 1.81% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 116.78% | ||
| Profit Quality | 1423.18% | ||
| Current Ratio | 2.04 | ||
| Quick Ratio | 2 | ||
| Altman-Z | 4.98 |
F-Score5
WACC9.7%
ROIC/WACC0.48
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)-51.45%
EPS 3Y-21.7%
EPS 5Y-14.21%
EPS Q2Q%81.25%
EPS Next Y348.12%
EPS Next 2Y129.86%
EPS Next 3Y87.87%
EPS Next 5Y26.71%
Revenue 1Y (TTM)17.13%
Revenue growth 3Y12.41%
Revenue growth 5Y14.46%
Sales Q2Q%19.53%
Revenue Next Year12.22%
Revenue Next 2Y11.28%
Revenue Next 3Y10.65%
Revenue Next 5Y-0.42%
EBIT growth 1Y-66.6%
EBIT growth 3Y-44.05%
EBIT growth 5Y-23.34%
EBIT Next Year303.29%
EBIT Next 3Y78.87%
EBIT Next 5Y24.59%
FCF growth 1Y-47.44%
FCF growth 3Y-24.05%
FCF growth 5Y-17.01%
OCF growth 1Y-41.01%
OCF growth 3Y-23.52%
OCF growth 5Y-13.95%