100.37 USD
-3.1 (-3%)
INCY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 525 industry peers in the Biotechnology industry. INCY gets an excellent profitability rating and is at the same time showing great financial health properties. INCY may be a bit undervalued, certainly considering the very reasonable score on growth This makes INCY very considerable 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.
- Of the past 5 years INCY 4 years were profitable.
- INCY had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- INCY has a Return On Assets of 18.78%. This is amongst the best in the industry. INCY outperforms 96.76% of its industry peers.
- Looking at the Return On Equity, with a value of 25.55%, INCY belongs to the top of the industry, outperforming 96.95% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 19.88%, INCY belongs to the top of the industry, outperforming 97.71% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital 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
- The Profit Margin of INCY (24.69%) is better than 94.86% of its industry peers.
- INCY's Profit Margin has declined in the last couple of years.
- INCY has a Operating Margin of 26.10%. This is amongst the best in the industry. INCY outperforms 96.00% of its industry peers.
- In the last couple of years the Operating Margin of INCY has declined.
- INCY has a Gross Margin of 93.47%. This is amongst the best in the industry. INCY outperforms 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.
- Compared to 1 year ago, INCY has less shares outstanding
- INCY has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for INCY is higher compared to a year ago.
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.
- The Altman-Z score of INCY (9.21) is better than 80.95% of its industry peers.
- 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.
- The Debt to FCF ratio of INCY (0.03) is better than 96.38% 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 Debt to Equity ratio (0.01) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.03 | ||
| Altman-Z | 9.21 |
ROIC/WACC2.25
WACC8.85%
2.3 Liquidity
- INCY has a Current Ratio of 3.20. This indicates that INCY is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of INCY (3.20) is worse than 61.90% of its industry peers.
- 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.
- INCY has a worse Quick ratio (3.13) than 60.00% of its industry peers.
| 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
- The Revenue has grown by 18.09% in the past year. This is quite good.
- 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)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
- INCY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.11% yearly.
- 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.
- 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
- Based on the Price/Earnings ratio of 15.63, the valuation of INCY can be described as correct.
- 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.
- INCY is valuated correctly with a Price/Forward Earnings ratio of 12.49.
- Based on the Price/Forward Earnings ratio, INCY is valued cheaper than 97.14% of the companies in the same industry.
- INCY is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.63 | ||
| Fwd PE | 12.49 |
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 96.00% 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 96.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.46 | ||
| EV/EBITDA | 12.57 |
4.3 Compensation for Growth
- The 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.
- A more expensive valuation may be justified as INCY's earnings are expected to grow with 89.71% in the coming years.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y146.73%
EPS Next 3Y89.71%
5. Dividend
5.1 Amount
- INCY does not give a dividend.
| 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.