105.06 USD
+0.39 (+0.37%)
105.18 USD
+0.12 (+0.11%)
We assign a fundamental rating of 6 out of 10 to INCY. INCY was compared to 525 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. These ratings could make INCY a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
- In the past year INCY was profitable.
- In the past year INCY had a positive cash flow from operations.
- 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
- With an excellent Return On Assets value of 18.78%, INCY belongs to the best of the industry, outperforming 96.76% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 25.55%, INCY belongs to the top of the industry, outperforming 96.95% of the companies in the same industry.
- INCY's Return On Invested Capital of 19.88% is amongst the best of the industry. INCY outperforms 97.71% 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 18.07%.
- The 3 year average ROIC (7.24%) for INCY is below the current ROIC(19.88%), indicating increased profibility in the last year.
| 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
- Looking at the Profit Margin, with a value of 24.69%, INCY belongs to the top of the industry, outperforming 94.86% 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 96.00% of its industry peers.
- INCY's Operating Margin has declined in the last couple of years.
- INCY has a Gross Margin of 93.47%. This is amongst the best in the industry. INCY outperforms 94.48% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so INCY is creating value.
- INCY has less shares outstanding than it did 1 year ago.
- INCY has less shares outstanding than it did 5 years ago.
- INCY has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 9.32 indicates that INCY is not in any danger for bankruptcy at the moment.
- The Altman-Z score of INCY (9.32) is better than 80.95% of its industry peers.
- INCY has a debt to FCF ratio of 0.03. This is a very positive value and a sign of high solvency as it would only need 0.03 years to pay back of all of its debts.
- INCY has a Debt to FCF ratio of 0.03. This is amongst the best in the industry. INCY outperforms 96.38% 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.
- The Debt to Equity ratio of INCY (0.01) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.03 | ||
| Altman-Z | 9.32 |
ROIC/WACC2.24
WACC8.89%
2.3 Liquidity
- A Current Ratio of 3.20 indicates that INCY has no problem at all paying its short term obligations.
- With a Current ratio value of 3.20, INCY is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
- A Quick Ratio of 3.13 indicates that INCY has no problem at all paying its short term obligations.
- The Quick ratio of INCY (3.13) is worse than 60.00% 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.
- Looking at the last year, INCY shows a quite strong growth in Revenue. The Revenue has grown by 18.09% in the last year.
- 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)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 29.11% yearly.
- Based on estimates for the next years, INCY will show a small growth in Revenue. The Revenue will grow by 1.31% on average per year.
EPS Next Y428.71%
EPS Next 2Y146.91%
EPS Next 3Y91%
EPS Next 5Y29.11%
Revenue Next Year18.23%
Revenue Next 2Y14.6%
Revenue Next 3Y12.92%
Revenue Next 5Y1.31%
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
- Based on the Price/Earnings ratio of 16.36, the valuation of INCY can be described as correct.
- Based on the Price/Earnings ratio, INCY is valued cheaper than 95.62% of the companies in the same industry.
- When comparing the Price/Earnings ratio of INCY to the average of the S&P500 Index (27.32), we can say INCY is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 13.05, the valuation of INCY can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of INCY indicates a rather cheap valuation: INCY is cheaper than 96.95% of the companies listed in the same industry.
- INCY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.36 | ||
| Fwd PE | 13.05 |
4.2 Price Multiples
- 96.00% 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 96.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.23 | ||
| EV/EBITDA | 12.8 |
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.
- A more expensive valuation may be justified as INCY's earnings are expected to grow with 91.00% in the coming years.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y146.91%
EPS Next 3Y91%
5. Dividend
5.1 Amount
- INCY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
INCYTE CORP / INCY FAQ
What is the fundamental rating for INCY stock?
ChartMill assigns a fundamental rating of 6 / 10 to INCY.
What is the valuation status of INCYTE CORP (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.
How financially healthy is INCYTE CORP?
The financial health rating of INCYTE CORP (INCY) is 7 / 10.
Can you provide the expected EPS growth for INCY stock?
The Earnings per Share (EPS) of INCYTE CORP (INCY) is expected to grow by 428.71% in the next year.