INCYTE CORP (INCY) Stock Fundamental Analysis
NASDAQ:INCY - Nasdaq - US45337C1027 - Common Stock
Overall INCY gets a fundamental rating of 7 out of 10. We evaluated INCY against 572 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. With these ratings, INCY could be worth investigating further 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.
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 has a Return On Assets of 0.65%. This is amongst the best in the industry. INCY outperforms 92.92% of its industry peers.
Looking at the Return On Equity, with a value of 1.02%, INCY belongs to the top of the industry, outperforming 93.63% of the companies in the same industry.
INCY has a better Return On Invested Capital (0.38%) than 93.27% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for INCY is below the industry average of 13.83%.
The 3 year average ROIC (9.11%) for INCY is well above the current ROIC(0.38%). The reason for the recent decline needs to be investigated.
| 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 93.27% of the companies in the same industry.
In the last couple of years the Profit Margin of INCY has grown nicely.
INCY has a Operating Margin of 0.48%. This is amongst the best in the industry. INCY outperforms 93.45% of its industry peers.
INCY's Operating Margin has improved in the last couple of years.
INCY's Gross Margin of 93.37% is amongst the best of the industry. INCY outperforms 94.51% 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
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 more shares outstanding
INCY has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, INCY has an improved debt to assets ratio.
2.2 Solvency
INCY has an Altman-Z score of 5.40. This indicates that INCY is financially healthy and has little risk of bankruptcy at the moment.
INCY's Altman-Z score of 5.40 is amongst the best of the industry. INCY outperforms 81.95% of its industry peers.
INCY has a debt to FCF ratio of 1.05. This is a very positive value and a sign of high solvency as it would only need 1.05 years to pay back of all of its debts.
INCY has a better Debt to FCF ratio (1.05) than 95.75% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that INCY is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.01, INCY is in line with its industry, outperforming 43.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 1.05 | ||
| Altman-Z | 5.4 |
ROIC/WACC0.03
WACC11.1%
2.3 Liquidity
INCY has a Current Ratio of 1.87. This is a normal value and indicates that INCY is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.87, INCY is not doing good in the industry: 77.70% of the companies in the same industry are doing better.
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.
Looking at the Quick ratio, with a value of 1.82, INCY is doing worse than 76.64% of the companies in the same industry.
INCY does not score too well on the current and quick ratio evaluation. However, as it has 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
The earnings per share for INCY have decreased strongly by -69.16% in the last year.
INCY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.86% yearly.
INCY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.94%.
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 very strong growth in Earnings Per Share. The EPS will grow by 24.08% on average per year.
Based on estimates for the next years, INCY will show a quite strong growth in Revenue. The Revenue will grow by 9.81% on average per year.
EPS Next Y-62.16%
EPS Next 2Y33.39%
EPS Next 3Y30.91%
EPS Next 5Y24.08%
Revenue Next Year13.93%
Revenue Next 2Y12.19%
Revenue Next 3Y11.68%
Revenue Next 5Y9.81%
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 stable.
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
The Price/Earnings ratio is 76.72, which means the current valuation is very expensive for INCY.
Compared to the rest of the industry, the Price/Earnings ratio of INCY indicates a rather cheap valuation: INCY is cheaper than 93.81% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of INCY to the average of the S&P500 Index (28.29), we can say INCY is valued expensively.
Based on the Price/Forward Earnings ratio of 11.64, the valuation of INCY can be described as reasonable.
Based on the Price/Forward Earnings ratio, INCY is valued cheaply inside the industry as 97.52% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, INCY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.72 | ||
| Fwd PE | 11.64 |
4.2 Price Multiples
93.27% 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 cheaply inside the industry as 92.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 458.22 | ||
| EV/EBITDA | 110.89 |
4.3 Compensation for Growth
INCY has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as INCY's earnings are expected to grow with 30.91% in the coming years.
PEG (NY)N/A
PEG (5Y)2.75
EPS Next 2Y33.39%
EPS Next 3Y30.91%
5. Dividend
5.1 Amount
No dividends for INCY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
INCYTE CORP
NASDAQ:INCY (1/22/2025, 2:34:18 PM)
72.88
-0.59 (-0.8%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners106.24%
Inst Owner Change0.08%
Ins Owners1.97%
Ins Owner Change0.43%
Market Cap14.04B
Analysts76.36
Price Target80.31 (10.19%)
Short Float %2.71%
Short Ratio2.37
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)-8.48%
Min EPS beat(2)-14.75%
Max EPS beat(2)-2.22%
EPS beat(4)0
Avg EPS beat(4)-13.17%
Min EPS beat(4)-25.52%
Max EPS beat(4)-2.22%
EPS beat(8)3
Avg EPS beat(8)-9.61%
EPS beat(12)4
Avg EPS beat(12)-14.4%
EPS beat(16)8
Avg EPS beat(16)-5.5%
Revenue beat(2)1
Avg Revenue beat(2)1.66%
Min Revenue beat(2)-0.21%
Max Revenue beat(2)3.54%
Revenue beat(4)1
Avg Revenue beat(4)-1%
Min Revenue beat(4)-6.49%
Max Revenue beat(4)3.54%
Revenue beat(8)3
Avg Revenue beat(8)-1.54%
Revenue beat(12)5
Avg Revenue beat(12)-0.63%
Revenue beat(16)8
Avg Revenue beat(16)0.45%
PT rev (1m)1.56%
PT rev (3m)7.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)25.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.18%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.72 | ||
| Fwd PE | 11.64 | ||
| P/S | 3.44 | ||
| P/FCF | 458.22 | ||
| P/OCF | 137.91 | ||
| P/B | 4.43 | ||
| P/tB | 4.85 | ||
| EV/EBITDA | 110.89 |
EPS(TTM)0.95
EY1.3%
EPS(NY)6.26
Fwd EY8.59%
FCF(TTM)0.16
FCFY0.22%
OCF(TTM)0.53
OCFY0.73%
SpS21.16
BVpS16.46
TBVpS15.03
PEG (NY)N/A
PEG (5Y)2.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.65% | ||
| ROE | 1.02% | ||
| ROCE | 0.55% | ||
| ROIC | 0.38% | ||
| ROICexc | 0.76% | ||
| ROICexgc | 0.9% | ||
| OM | 0.48% | ||
| PM (TTM) | 0.8% | ||
| GM | 93.37% | ||
| FCFM | 0.75% |
ROA(3y)11.29%
ROA(5y)7.72%
ROE(3y)14.82%
ROE(5y)10.07%
ROIC(3y)9.11%
ROIC(5y)N/A
ROICexc(3y)27.99%
ROICexc(5y)N/A
ROICexgc(3y)34.55%
ROICexgc(5y)N/A
ROCE(3y)13.4%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y8.18%
ROICexc growth 3YN/A
ROICexc growth 5Y17.85%
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%
F-Score5
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 1.05 | ||
| Debt/EBITDA | 0.26 | ||
| Cap/Depr | 80.62% | ||
| Cap/Sales | 1.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.54% | ||
| Profit Quality | 94.33% | ||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z | 5.4 |
F-Score5
WACC11.1%
ROIC/WACC0.03
Cap/Depr(3y)155.68%
Cap/Depr(5y)194.42%
Cap/Sales(3y)3.08%
Cap/Sales(5y)3.98%
Profit Quality(3y)133.14%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-69.16%
EPS 3YN/A
EPS 5Y27.86%
EPS Q2Q%-2.73%
EPS Next Y-62.16%
EPS Next 2Y33.39%
EPS Next 3Y30.91%
EPS Next 5Y24.08%
Revenue 1Y (TTM)12.94%
Revenue growth 3Y11.49%
Revenue growth 5Y14.45%
Sales Q2Q%23.81%
Revenue Next Year13.93%
Revenue Next 2Y12.19%
Revenue Next 3Y11.68%
Revenue Next 5Y9.81%
EBIT growth 1Y-96.41%
EBIT growth 3YN/A
EBIT growth 5Y33.21%
EBIT Next Year-48.28%
EBIT Next 3Y31.5%
EBIT Next 5Y18.9%
FCF growth 1Y-95.69%
FCF growth 3YN/A
FCF growth 5Y12.05%
OCF growth 1Y-87.3%
OCF growth 3YN/A
OCF growth 5Y8.11%