101.15 USD
-0.03 (-0.03%)
We assign a fundamental rating of 6 out of 10 to INCY. INCY was compared to 525 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 and quality investing.
1. Profitability
1.1 Basic Checks
- INCY had positive earnings in the past year.
- In the past year INCY had a positive cash flow from operations.
- 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
- Looking at the Return On Assets, with a value of 18.78%, INCY belongs to the top of the industry, outperforming 96.76% of the companies in the same industry.
- INCY has a better Return On Equity (25.55%) than 96.95% of its industry peers.
- 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
- With an excellent Profit Margin value of 24.69%, INCY belongs to the best of the industry, outperforming 94.86% of the companies in the same industry.
- INCY's Profit Margin has declined in the last couple of years.
- INCY has a better Operating Margin (26.10%) than 96.00% of its industry peers.
- In the last couple of years the Operating Margin of INCY has declined.
- INCY has a Gross Margin of 93.47%. This is amongst the best in the industry. INCY outperforms 94.48% 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 | 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.
- 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 9.05. 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 9.05, INCY belongs to the top of the industry, outperforming 81.33% of the companies in the same industry.
- 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 96.38% of its industry peers.
- A Debt/Equity ratio of 0.01 indicates that INCY is not too dependend on debt financing.
- 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 | 9.05 |
ROIC/WACC2.24
WACC8.87%
2.3 Liquidity
- A Current Ratio of 3.20 indicates that INCY has no problem at all paying its short term obligations.
- INCY has a worse Current ratio (3.20) than 61.90% of its industry peers.
- INCY has a Quick Ratio of 3.13. This indicates that INCY is financially healthy and has no problem in meeting its short term obligations.
- INCY has a Quick ratio of 3.13. This is in the lower half of the industry: INCY underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.2 | ||
| Quick Ratio | 3.13 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 575.79% over the past year.
- 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%.
- The Revenue has been growing by 14.46% on average over the past years. This is quite good.
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
- The Earnings Per Share is expected to grow by 29.11% on average over the next years. This is a very strong growth
- 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 Y428.83%
EPS Next 2Y146.73%
EPS Next 3Y89.71%
EPS Next 5Y29.11%
Revenue Next Year18.3%
Revenue Next 2Y14.58%
Revenue Next 3Y12.98%
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.
- 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 15.76, 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 95.81% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of INCY to the average of the S&P500 Index (28.60), we can say INCY is valued slightly cheaper.
- INCY is valuated correctly with a Price/Forward Earnings ratio of 12.59.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of INCY indicates a rather cheap valuation: INCY is cheaper than 97.33% of the companies listed in the same industry.
- INCY is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.76 | ||
| Fwd PE | 12.59 |
4.2 Price Multiples
- INCY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. INCY is cheaper than 96.00% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of INCY indicates a rather cheap valuation: INCY is cheaper than 96.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.59 | ||
| EV/EBITDA | 12.23 |
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.
- INCY's earnings are expected to grow with 89.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y146.73%
EPS Next 3Y89.71%
5. Dividend
5.1 Amount
- No dividends for INCY!.
| 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 428.83% in the next year.