NASDAQ:INCY stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Mar 4, 2024

Our stock screener has singled out INCYTE CORP (NASDAQ:INCY) as a stellar value proposition. NASDAQ:INCY not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Understanding NASDAQ:INCY's Valuation

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:INCY was assigned a score of 8 for valuation:

Compared to the rest of the industry, the Price/Earnings ratio of INCY indicates a rather cheap valuation: INCY is cheaper than 97.14% of the companies listed in the same industry.
INCY is valuated rather cheaply when we compare the Price/Earnings ratio to 25.86, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio, INCY is valued cheaper than 97.81% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.87. INCY is valued slightly cheaper when compared to this.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of INCY indicates a rather cheap valuation: INCY is cheaper than 97.47% of the companies listed 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 96.13% of the companies listed in the same industry.
INCY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
INCY has an outstanding profitability rating, which may justify a higher PE ratio.
INCY's earnings are expected to grow with 26.98% in the coming years. This may justify a more expensive valuation.

Profitability Analysis for NASDAQ:INCY

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:INCY, the assigned 8 is a significant indicator of profitability:

INCY's Return On Assets of 8.81% is amongst the best of the industry. INCY outperforms 96.97% of its industry peers.
Looking at the Return On Equity, with a value of 11.51%, INCY belongs to the top of the industry, outperforming 96.63% of the companies in the same industry.
INCY has a better Return On Invested Capital (8.00%) than 96.13% of its industry peers.
With an excellent Profit Margin value of 16.17%, INCY belongs to the best of the industry, outperforming 96.63% of the companies in the same industry.
In the last couple of years the Profit Margin of INCY has grown nicely.
The Operating Margin of INCY (17.64%) is better than 96.46% of its industry peers.
In the last couple of years the Operating Margin of INCY has grown nicely.
INCY has a Gross Margin of 93.71%. This is amongst the best in the industry. INCY outperforms 94.78% of its industry peers.

Assessing Health for NASDAQ:INCY

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:INCY has earned a 7 out of 10:

An Altman-Z score of 6.49 indicates that INCY is not in any danger for bankruptcy at the moment.
INCY's Altman-Z score of 6.49 is fine compared to the rest of the industry. INCY outperforms 79.12% of its industry peers.
The Debt to FCF ratio of INCY is 0.07, which is an excellent value as it means it would take INCY, only 0.07 years of fcf income to pay off all of its debts.
INCY's Debt to FCF ratio of 0.07 is amongst the best of the industry. INCY outperforms 97.47% 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.
INCY has a Current Ratio of 3.75. This indicates that INCY is financially healthy and has no problem in meeting its short term obligations.
INCY has a Quick Ratio of 3.69. This indicates that INCY is financially healthy and has no problem in meeting its short term obligations.

Growth Assessment of NASDAQ:INCY

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:INCY was assigned a score of 7 for growth:

INCY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.62%, which is quite impressive.
Measured over the past years, INCY shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.86% on average per year.
INCY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.87%.
Measured over the past years, INCY shows a quite strong growth in Revenue. The Revenue has been growing by 14.45% on average per year.
The Earnings Per Share is expected to grow by 18.66% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.14% on average over the next years. This is quite good.

More Decent Value stocks can be found in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of INCY

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.