INCYTE CORP (INCY) Stock Fundamental Analysis
USA - NASDAQ:INCY - US45337C1027 - Common Stock
88.06 USD
+0.76 (+0.87%)
87.53 USD
-0.53 (-0.6%)
INCY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 534 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on INCY. 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 better Return On Assets (14.96%) than 95.32% of its industry peers.
INCY has a Return On Equity of 20.88%. This is amongst the best in the industry. INCY outperforms 95.51% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.30%, INCY belongs to the top of the industry, outperforming 96.82% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for INCY is significantly below the industry average of 15.49%.
The last Return On Invested Capital (17.30%) for INCY is above the 3 year average (7.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.96% | ||
| ROE | 20.88% | ||
| ROIC | 17.3% |
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 18.99% is amongst the best of the industry. INCY outperforms 94.19% of its industry peers.
In the last couple of years the Profit Margin of INCY has declined.
With an excellent Operating Margin value of 21.69%, INCY belongs to the best of the industry, outperforming 95.32% of the companies in the same industry.
INCY's Operating Margin has declined in the last couple of years.
The Gross Margin of INCY (93.41%) is better than 93.45% of its industry peers.
INCY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.69% | ||
| PM (TTM) | 18.99% | ||
| GM | 93.41% |
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.
INCY has less shares outstanding than it did 1 year ago.
The number of shares outstanding for INCY has been reduced compared to 5 years ago.
The debt/assets ratio for INCY is higher compared to a year ago.
2.2 Solvency
INCY has an Altman-Z score of 7.97. This indicates that INCY is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 7.97, INCY is doing good in the industry, outperforming 79.59% of the companies in the same industry.
INCY has a debt to FCF ratio of 0.04. This is a very positive value and a sign of high solvency as it would only need 0.04 years to pay back of all of its debts.
The Debt to FCF ratio of INCY (0.04) is better than 96.82% 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 7.97 |
ROIC/WACC1.86
WACC9.32%
2.3 Liquidity
A Current Ratio of 2.85 indicates that INCY has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.85, INCY is doing worse than 65.92% of the companies in the same industry.
A Quick Ratio of 2.78 indicates that INCY has no problem at all paying its short term obligations.
With a Quick ratio value of 2.78, INCY is not doing good in the industry: 64.42% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.85 | ||
| Quick Ratio | 2.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 433.67% over the past year.
INCY shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.21% yearly.
INCY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.88%.
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)433.67%
EPS 3Y-21.7%
EPS 5Y-14.21%
EPS Q2Q%186.26%
Revenue 1Y (TTM)18.88%
Revenue growth 3Y12.41%
Revenue growth 5Y14.46%
Sales Q2Q%16.46%
3.2 Future
The Earnings Per Share is expected to grow by 27.17% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -0.47% on average over the next years.
EPS Next Y378%
EPS Next 2Y136.66%
EPS Next 3Y88.91%
EPS Next 5Y27.17%
Revenue Next Year15.11%
Revenue Next 2Y12.96%
Revenue Next 3Y11.7%
Revenue Next 5Y-0.47%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 16.84, INCY is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of INCY indicates a rather cheap valuation: INCY is cheaper than 95.69% of the companies listed in the same industry.
INCY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.57.
With a Price/Forward Earnings ratio of 11.91, the valuation of INCY can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of INCY indicates a rather cheap valuation: INCY is cheaper than 97.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.09. INCY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.84 | ||
| Fwd PE | 11.91 |
4.2 Price Multiples
INCY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. INCY is cheaper than 94.94% of the companies in the same industry.
INCY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. INCY is cheaper than 95.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.95 | ||
| EV/EBITDA | 12.79 |
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.
INCY has a very decent profitability rating, which may justify a higher PE ratio.
INCY's earnings are expected to grow with 88.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y136.66%
EPS Next 3Y88.91%
5. Dividend
5.1 Amount
No dividends for INCY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
88.06
+0.76 (+0.87%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners103.23%
Inst Owner Change0.54%
Ins Owners1.85%
Ins Owner Change0.45%
Market Cap17.20B
Revenue(TTM)4.58B
Net Income(TTM)870.87M
Analysts74.55
Price Target85.9 (-2.45%)
Short Float %4.56%
Short Ratio4.79
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)8.31%
Min EPS beat(2)4.72%
Max EPS beat(2)11.9%
EPS beat(4)2
Avg EPS beat(4)1.1%
Min EPS beat(4)-10.01%
Max EPS beat(4)11.9%
EPS beat(8)3
Avg EPS beat(8)-5.09%
EPS beat(12)5
Avg EPS beat(12)-7.34%
EPS beat(16)7
Avg EPS beat(16)-6.93%
Revenue beat(2)2
Avg Revenue beat(2)3.69%
Min Revenue beat(2)3.45%
Max Revenue beat(2)3.94%
Revenue beat(4)4
Avg Revenue beat(4)3%
Min Revenue beat(4)1.09%
Max Revenue beat(4)3.94%
Revenue beat(8)4
Avg Revenue beat(8)-0.25%
Revenue beat(12)6
Avg Revenue beat(12)-0.67%
Revenue beat(16)9
Avg Revenue beat(16)0.51%
PT rev (1m)1.57%
PT rev (3m)10.21%
EPS NQ rev (1m)0.42%
EPS NQ rev (3m)7.17%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)6.72%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)3.14%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)2.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.84 | ||
| Fwd PE | 11.91 | ||
| P/S | 3.75 | ||
| P/FCF | 17.95 | ||
| P/OCF | 17.15 | ||
| P/B | 4.12 | ||
| P/tB | 4.42 | ||
| EV/EBITDA | 12.79 |
EPS(TTM)5.23
EY5.94%
EPS(NY)7.39
Fwd EY8.4%
FCF(TTM)4.91
FCFY5.57%
OCF(TTM)5.14
OCFY5.83%
SpS23.48
BVpS21.36
TBVpS19.91
PEG (NY)0.04
PEG (5Y)N/A
Graham Number50.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.96% | ||
| ROE | 20.88% | ||
| ROCE | 21.89% | ||
| ROIC | 17.3% | ||
| ROICexc | 47.5% | ||
| ROICexgc | 57.26% | ||
| OM | 21.69% | ||
| PM (TTM) | 18.99% | ||
| GM | 93.41% | ||
| FCFM | 20.9% |
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-Score6
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.04 | ||
| Debt/EBITDA | 0.03 | ||
| Cap/Depr | 49.5% | ||
| Cap/Sales | 0.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.43% | ||
| Profit Quality | 110.01% | ||
| Current Ratio | 2.85 | ||
| Quick Ratio | 2.78 | ||
| Altman-Z | 7.97 |
F-Score6
WACC9.32%
ROIC/WACC1.86
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)433.67%
EPS 3Y-21.7%
EPS 5Y-14.21%
EPS Q2Q%186.26%
EPS Next Y378%
EPS Next 2Y136.66%
EPS Next 3Y88.91%
EPS Next 5Y27.17%
Revenue 1Y (TTM)18.88%
Revenue growth 3Y12.41%
Revenue growth 5Y14.46%
Sales Q2Q%16.46%
Revenue Next Year15.11%
Revenue Next 2Y12.96%
Revenue Next 3Y11.7%
Revenue Next 5Y-0.47%
EBIT growth 1Y1425.09%
EBIT growth 3Y-44.05%
EBIT growth 5Y-23.34%
EBIT Next Year352.21%
EBIT Next 3Y84.5%
EBIT Next 5Y24.25%
FCF growth 1Y34.45%
FCF growth 3Y-24.05%
FCF growth 5Y-17.01%
OCF growth 1Y28.43%
OCF growth 3Y-23.52%
OCF growth 5Y-13.95%