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NASDAQ:INCY stands out as a growth opportunity that won't break the bank.

By Mill Chart

Last update: Apr 5, 2024

Discover INCYTE CORP (NASDAQ:INCY), an undervalued growth gem identified by our stock screener. NASDAQ:INCY is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

ChartMill's Evaluation of Growth

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:INCY has earned a 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.
  • The Earnings Per Share has been growing by 27.86% on average over the past years. This is a very strong growth
  • Looking at the last year, INCY shows a quite strong growth in Revenue. The Revenue has grown by 8.87% in the last year.
  • The Revenue has been growing by 14.45% on average over the past years. This is quite good.
  • Based on estimates for the next years, INCY will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.66% 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 8.13% on average per year.

Unpacking NASDAQ:INCY's Valuation Rating

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:INCY scores a 8 out of 10:

  • INCY's Price/Earnings ratio is rather cheap when compared to the industry. INCY is cheaper than 97.27% of the companies in the same industry.
  • INCY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.77.
  • The Price/Forward Earnings ratio is 11.74, which indicates a very decent valuation of INCY.
  • INCY's Price/Forward Earnings ratio is rather cheap when compared to the industry. INCY is cheaper than 97.95% of the companies in the same industry.
  • INCY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.16, which is the current average of the S&P500 Index.
  • Based on the Enterprise Value to EBITDA ratio, INCY is valued cheaply inside the industry as 97.61% of the companies are valued more expensively.
  • 96.07% of the companies in the same industry are more expensive than INCY, based on the Price/Free Cash Flow ratio.
  • INCY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The excellent 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 25.08% in the coming years.

Assessing Health for NASDAQ:INCY

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:INCY was assigned a score of 7 for health:

  • INCY has an Altman-Z score of 6.15. This indicates that INCY is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of INCY (6.15) is better than 81.03% of its industry peers.
  • INCY has a debt to FCF ratio of 0.07. This is a very positive value and a sign of high solvency as it would only need 0.07 years to pay back of all of its debts.
  • With an excellent Debt to FCF ratio value of 0.07, INCY belongs to the best of the industry, outperforming 97.61% of the companies in the same industry.
  • INCY has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
  • A Current Ratio of 3.75 indicates that INCY has no problem at all paying 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.

Assessing Profitability for NASDAQ:INCY

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:INCY has earned a 8 out of 10:

  • INCY's Return On Assets of 8.81% is amongst the best of the industry. INCY outperforms 96.92% 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 96.58% of the companies in the same industry.
  • INCY has a better Return On Invested Capital (8.00%) than 96.41% of its industry peers.
  • INCY has a Profit Margin of 16.17%. This is amongst the best in the industry. INCY outperforms 97.09% of its industry peers.
  • In the last couple of years the Profit Margin of INCY has grown nicely.
  • The Operating Margin of INCY (17.64%) is better than 96.75% of its industry peers.
  • In the last couple of years the Operating Margin of INCY has grown nicely.
  • INCY has a better Gross Margin (93.71%) than 95.38% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Our latest full fundamental report of INCY contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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INCYTE CORP

NASDAQ:INCY (5/24/2024, 7:00:02 PM)

After market: 57.31 0 (0%)

57.31

-0.14 (-0.24%)

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