103.47 USD
+0.89 (+0.87%)
102.08 USD
-1.39 (-1.34%)
Taking everything into account, INCY scores 6 out of 10 in our fundamental rating. INCY was compared to 525 industry peers in the Biotechnology industry. Both the health and profitability get an excellent rating, making INCY a very profitable company, without any liquidiy or solvency issues. INCY scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make INCY suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
- INCY had positive earnings in the past year.
- INCY had a positive operating cash flow in the past year.
- 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
- INCY has a better Return On Assets (18.78%) than 96.76% of its industry peers.
- INCY has a Return On Equity of 25.55%. This is amongst the best in the industry. INCY outperforms 96.95% of its industry peers.
- INCY has a Return On Invested Capital of 19.88%. This is amongst the best in the industry. INCY outperforms 97.71% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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
- INCY's Profit Margin of 24.69% is amongst the best of the industry. INCY outperforms 94.86% of its industry peers.
- 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.
- In the last couple of years the Operating Margin of INCY has declined.
- The Gross Margin of INCY (93.47%) is better than 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
- 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.
- Compared to 5 years ago, INCY has less shares outstanding
- INCY has a worse debt/assets ratio than last year.
2.2 Solvency
- INCY has an Altman-Z score of 9.21. 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 9.21, INCY belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
- 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.
- Looking at the Debt to FCF ratio, with a value of 0.03, INCY belongs to the top of the industry, outperforming 96.38% of the companies in the same industry.
- 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 | 9.21 |
ROIC/WACC2.25
WACC8.85%
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.
- 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.
- With a Quick ratio value of 3.13, INCY is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| 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.
- The earnings per share for INCY have been decreasing by -14.21% on average. This is quite bad
- INCY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.09%.
- 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
- Based on estimates for the next years, INCY will show a very strong growth in Earnings Per Share. The EPS will grow by 29.11% on average per year.
- INCY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.31% yearly.
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.
- 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 16.12, 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.
- INCY is valuated rather cheaply when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 12.88, INCY is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of INCY indicates a rather cheap valuation: INCY is cheaper than 97.14% 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 (25.95), we can say INCY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.12 | ||
| Fwd PE | 12.88 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, INCY is valued cheaply inside the industry as 96.00% of the companies are valued more expensively.
- 96.38% of the companies in the same industry are more expensive than INCY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.97 | ||
| EV/EBITDA | 12.57 |
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 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.