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 568 industry peers in the Biotechnology industry. INCY scores excellent on profitability, but there are some minor concerns on its financial health. 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 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.
Of the past 5 years INCY 4 years had a positive operating cash flow.
1.2 Ratios
INCY's Return On Assets of 0.60% is amongst the best of the industry. INCY outperforms 91.02% of its industry peers.
Looking at the Return On Equity, with a value of 0.95%, INCY belongs to the top of the industry, outperforming 91.90% of the companies in the same industry.
INCY has a Return On Invested Capital of 2.32%. This is amongst the best in the industry. INCY outperforms 92.78% 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 14.25%.
The 3 year average ROIC (7.24%) for INCY is well above the current ROIC(2.32%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | 0.95% | ||
| ROIC | 2.32% |
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 0.77%, INCY belongs to the best of the industry, outperforming 91.73% of the companies in the same industry.
In the last couple of years the Profit Margin of INCY has declined.
Looking at the Operating Margin, with a value of 2.63%, INCY belongs to the top of the industry, outperforming 92.78% of the companies in the same industry.
INCY's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 93.20%, INCY belongs to the best of the industry, outperforming 93.13% 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 | 2.63% | ||
| PM (TTM) | 0.77% | ||
| GM | 93.2% |
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.
Compared to 1 year ago, INCY has less shares outstanding
Compared to 5 years ago, INCY has less shares outstanding
Compared to 1 year ago, INCY has a worse debt to assets ratio.
2.2 Solvency
INCY has an Altman-Z score of 4.31. This indicates that INCY is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.31, INCY belongs to the best of the industry, outperforming 80.46% of the companies in the same industry.
The Debt to FCF ratio of INCY is 0.15, which is an excellent value as it means it would take INCY, only 0.15 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.15, INCY belongs to the top of the industry, outperforming 96.83% 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 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 | 0.15 | ||
| Altman-Z | 4.31 |
ROIC/WACC0.22
WACC10.32%
2.3 Liquidity
INCY has a Current Ratio of 1.97. This is a normal value and indicates that INCY is financially healthy and should not expect problems in meeting its short term obligations.
INCY has a Current ratio of 1.97. This is in the lower half of the industry: INCY underperforms 75.35% of its industry peers.
A Quick Ratio of 1.94 indicates that INCY should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.94, INCY is doing worse than 74.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.94 |
3. Growth
3.1 Past
The earnings per share for INCY have decreased strongly by -62.50% in the last 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 14.76%.
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)-62.5%
EPS 3Y-21.7%
EPS 5Y-14.21%
EPS Q2Q%34.91%
Revenue 1Y (TTM)14.76%
Revenue growth 3Y12.41%
Revenue growth 5Y14.46%
Sales Q2Q%16.32%
3.2 Future
INCY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.93% yearly.
The Revenue is expected to decrease by -0.65% on average over the next years.
EPS Next Y350.9%
EPS Next 2Y130.51%
EPS Next 3Y88.2%
EPS Next 5Y25.93%
Revenue Next Year10.96%
Revenue Next 2Y10.08%
Revenue Next 3Y10.03%
Revenue Next 5Y-0.65%
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 44.10, INCY can be considered very expensive at the moment.
Based on the Price/Earnings ratio, INCY is valued cheaply inside the industry as 93.31% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.29, INCY is valued quite expensively.
The Price/Forward Earnings ratio is 9.78, which indicates a very decent valuation of INCY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of INCY indicates a rather cheap valuation: INCY is cheaper than 97.18% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of INCY to the average of the S&P500 Index (21.08), we can say INCY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.1 | ||
| Fwd PE | 9.78 |
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 93.13% of the companies listed in the same industry.
INCY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. INCY is cheaper than 93.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.23 | ||
| EV/EBITDA | 40.84 |
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 88.20% in the coming years.
PEG (NY)0.13
PEG (5Y)N/A
EPS Next 2Y130.51%
EPS Next 3Y88.2%
5. Dividend
5.1 Amount
INCY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
58.21
+0.48 (+0.83%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners97.01%
Inst Owner Change0.02%
Ins Owners1.98%
Ins Owner Change6.39%
Market Cap11.26B
Analysts73.94
Price Target76.76 (31.87%)
Short Float %3.09%
Short Ratio3.66
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)0
Avg EPS beat(2)-6.12%
Min EPS beat(2)-10.01%
Max EPS beat(2)-2.22%
EPS beat(4)0
Avg EPS beat(4)-13.12%
Min EPS beat(4)-25.52%
Max EPS beat(4)-2.22%
EPS beat(8)2
Avg EPS beat(8)-11.48%
EPS beat(12)4
Avg EPS beat(12)-7.85%
EPS beat(16)7
Avg EPS beat(16)-7.49%
Revenue beat(2)2
Avg Revenue beat(2)2.31%
Min Revenue beat(2)1.09%
Max Revenue beat(2)3.54%
Revenue beat(4)2
Avg Revenue beat(4)-0.52%
Min Revenue beat(4)-6.49%
Max Revenue beat(4)3.54%
Revenue beat(8)3
Avg Revenue beat(8)-1.79%
Revenue beat(12)5
Avg Revenue beat(12)-0.87%
Revenue beat(16)8
Avg Revenue beat(16)-0.52%
PT rev (1m)-3.58%
PT rev (3m)-4.42%
EPS NQ rev (1m)1.76%
EPS NQ rev (3m)-6.39%
EPS NY rev (1m)0.27%
EPS NY rev (3m)-4.97%
Revenue NQ rev (1m)-0.88%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.1 | ||
| Fwd PE | 9.78 | ||
| P/S | 2.66 | ||
| P/FCF | 45.23 | ||
| P/OCF | 33.59 | ||
| P/B | 3.27 | ||
| P/tB | 3.54 | ||
| EV/EBITDA | 40.84 |
EPS(TTM)1.32
EY2.27%
EPS(NY)5.95
Fwd EY10.22%
FCF(TTM)1.29
FCFY2.21%
OCF(TTM)1.73
OCFY2.98%
SpS21.92
BVpS17.82
TBVpS16.42
PEG (NY)0.13
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | 0.95% | ||
| ROCE | 2.94% | ||
| ROIC | 2.32% | ||
| ROICexc | 7.51% | ||
| ROICexgc | 9.75% | ||
| OM | 2.63% | ||
| PM (TTM) | 0.77% | ||
| GM | 93.2% | ||
| FCFM | 5.87% |
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 Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.15 | ||
| Debt/EBITDA | 0.17 | ||
| Cap/Depr | 96.66% | ||
| Cap/Sales | 2.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 166.92% | ||
| Profit Quality | 763.68% | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.94 | ||
| Altman-Z | 4.31 |
F-Score5
WACC10.32%
ROIC/WACC0.22
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)-62.5%
EPS 3Y-21.7%
EPS 5Y-14.21%
EPS Q2Q%34.91%
EPS Next Y350.9%
EPS Next 2Y130.51%
EPS Next 3Y88.2%
EPS Next 5Y25.93%
Revenue 1Y (TTM)14.76%
Revenue growth 3Y12.41%
Revenue growth 5Y14.46%
Sales Q2Q%16.32%
Revenue Next Year10.96%
Revenue Next 2Y10.08%
Revenue Next 3Y10.03%
Revenue Next 5Y-0.65%
EBIT growth 1Y-82.87%
EBIT growth 3Y-44.05%
EBIT growth 5Y-23.34%
EBIT Next Year295.89%
EBIT Next 3Y80.02%
EBIT Next 5Y26.44%
FCF growth 1Y-46.32%
FCF growth 3Y-24.05%
FCF growth 5Y-17.01%
OCF growth 1Y-32.46%
OCF growth 3Y-23.52%
OCF growth 5Y-13.95%