INCYTE CORP (INCY)
US45337C1027 - Common Stock
Taking everything into account, INCY scores 7 out of 10 in our fundamental rating. INCY was compared to 565 industry peers in the Biotechnology industry. INCY scores excellent points on both the profitability and health parts. This is a solid base for a good stock. INCY scores decently on growth, while it is valued quite cheap. This could make an interesting 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.
INCY had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
INCY has a Return On Assets of 0.65%. This is amongst the best in the industry. INCY outperforms 92.87% of its industry peers.
With an excellent Return On Equity value of 1.02%, INCY belongs to the best of the industry, outperforming 93.76% of the companies in the same industry.
INCY has a better Return On Invested Capital (0.38%) than 93.05% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for INCY is significantly below the industry average of 15.31%.
The last Return On Invested Capital (0.38%) for INCY is well below the 3 year average (9.11%), which needs to be investigated, but indicates that INCY had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.65% | ||
| ROE | 1.02% | ||
| ROIC | 0.38% |
ROA(3y)11.29%
ROA(5y)7.72%
ROE(3y)14.82%
ROE(5y)10.07%
ROIC(3y)9.11%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 0.80%, 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 Profit Margin of INCY has grown nicely.
With an excellent Operating Margin value of 0.48%, INCY belongs to the best 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.
The Gross Margin of INCY (93.37%) is better than 94.47% of its industry peers.
In the last couple of years the Gross Margin of INCY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.48% | ||
| PM (TTM) | 0.8% | ||
| GM | 93.37% |
OM growth 3YN/A
OM growth 5Y16.39%
PM growth 3YN/A
PM growth 5Y22.68%
GM growth 3Y-0.76%
GM growth 5Y-0.51%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), INCY is destroying value.
The number of shares outstanding for INCY has been increased compared to 1 year ago.
Compared to 5 years ago, INCY has more shares outstanding
Compared to 1 year ago, INCY has an improved debt to assets ratio.
2.2 Solvency
INCY has an Altman-Z score of 5.24. This indicates that INCY is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.24, INCY belongs to the best of the industry, outperforming 80.57% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 1.05, INCY belongs to the best of the industry, outperforming 95.90% of the companies in the same industry.
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 45.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 1.05 | ||
| Altman-Z | 5.24 |
ROIC/WACC0.04
WACC10.39%
2.3 Liquidity
A Current Ratio of 1.87 indicates that INCY should not have too much problems paying its short term obligations.
INCY's Current ratio of 1.87 is on the low side compared to the rest of the industry. INCY is outperformed by 77.36% of its industry peers.
INCY has a Quick Ratio of 1.82. This is a normal value and indicates that INCY is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of INCY (1.82) is worse than 77.01% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
INCY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -69.16%.
Measured over the past years, INCY shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.86% on average per year.
Looking at the last year, INCY shows a quite strong growth in Revenue. The Revenue has grown by 12.94% in the last year.
The Revenue has been growing by 14.45% on average over the past years. This is quite good.
EPS 1Y (TTM)-69.16%
EPS 3YN/A
EPS 5Y27.86%
EPS Q2Q%-2.73%
Revenue 1Y (TTM)12.94%
Revenue growth 3Y11.49%
Revenue growth 5Y14.45%
Sales Q2Q%23.81%
3.2 Future
Based on estimates for the next years, INCY will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.88% on average per year.
The Revenue is expected to grow by 8.74% on average over the next years. This is quite good.
EPS Next Y-62.16%
EPS Next 2Y33.39%
EPS Next 3Y30.93%
EPS Next 5Y17.88%
Revenue Next Year13.95%
Revenue Next 2Y12.14%
Revenue Next 3Y11.68%
Revenue Next 5Y8.74%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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
INCY is valuated quite expensively with a Price/Earnings ratio of 74.79.
Based on the Price/Earnings ratio, INCY is valued cheaper than 94.12% of the companies in the same industry.
When comparing the Price/Earnings ratio of INCY to the average of the S&P500 Index (28.65), we can say INCY is valued expensively.
With a Price/Forward Earnings ratio of 11.34, the valuation of INCY can be described as very reasonable.
97.50% of the companies in the same industry are more expensive than INCY, based on the Price/Forward Earnings ratio.
INCY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.79 | ||
| Fwd PE | 11.34 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of INCY indicates a rather cheap valuation: INCY is cheaper than 93.40% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, INCY is valued cheaply inside the industry as 92.69% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 446.71 | ||
| EV/EBITDA | 106.56 |
4.3 Compensation for Growth
The excellent profitability rating of INCY may justify a higher PE ratio.
INCY's earnings are expected to grow with 30.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)2.68
EPS Next 2Y33.39%
EPS Next 3Y30.93%
5. Dividend
5.1 Amount
INCY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
INCYTE CORP
NASDAQ:INCY (11/20/2024, 8:00:02 PM)
After market: 71.05 0 (0%)71.05
+0.49 (+0.69%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.69B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.79 | ||
| Fwd PE | 11.34 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.65% | ||
| ROE | 1.02% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.48% | ||
| PM (TTM) | 0.8% | ||
| GM | 93.37% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-69.16%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-62.16%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.94%
Revenue growth 3Y11.49%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y