INCYTE CORP (INCY) Stock Fundamental Analysis
NASDAQ:INCY - Nasdaq - US45337C1027 - Common Stock - Currency: USD
Taking everything into account, INCY scores 6 out of 10 in our fundamental rating. INCY was compared to 561 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 may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make INCY a good candidate for value 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.
Of the past 5 years INCY 4 years had a positive operating cash flow.
1.2 Ratios
INCY's Return On Assets of 0.37% is amongst the best of the industry. INCY outperforms 90.37% of its industry peers.
With an excellent Return On Equity value of 0.58%, INCY belongs to the best of the industry, outperforming 91.44% of the companies in the same industry.
The Return On Invested Capital of INCY (4.67%) is better than 92.87% of its industry peers.
The Average Return On Invested Capital over the past 3 years for INCY is significantly below the industry average of 15.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.37% | ||
| ROE | 0.58% | ||
| ROIC | 4.67% |
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 has a better Profit Margin (0.48%) than 91.09% of its industry peers.
In the last couple of years the Profit Margin of INCY has declined.
Looking at the Operating Margin, with a value of 5.39%, INCY belongs to the top of the industry, outperforming 92.87% of the companies in the same industry.
In the last couple of years the Operating Margin of INCY has declined.
INCY has a better Gross Margin (93.19%) than 93.23% 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 | 5.39% | ||
| PM (TTM) | 0.48% | ||
| GM | 93.19% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so INCY is destroying value.
The number of shares outstanding for INCY has been reduced compared to 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
An Altman-Z score of 4.61 indicates that INCY is not in any danger for bankruptcy at the moment.
The Altman-Z score of INCY (4.61) is better than 79.86% of its industry peers.
The Debt to FCF ratio of INCY is 0.12, which is an excellent value as it means it would take INCY, only 0.12 years of fcf income to pay off all of its debts.
INCY has a better Debt to FCF ratio (0.12) than 97.15% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that INCY is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.01, INCY perfoms like the industry average, outperforming 42.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.12 | ||
| Altman-Z | 4.61 |
ROIC/WACC0.47
WACC9.88%
2.3 Liquidity
INCY has a Current Ratio of 2.04. This indicates that INCY is financially healthy and has no problem in meeting its short term obligations.
INCY has a Current ratio of 2.04. This is in the lower half of the industry: INCY underperforms 74.87% of its industry peers.
INCY has a Quick Ratio of 2.00. This indicates that INCY is financially healthy and has no problem in meeting its short term obligations.
INCY's Quick ratio of 2.00 is on the low side compared to the rest of the industry. INCY is outperformed by 73.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
INCY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -51.45%.
INCY shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.21% yearly.
INCY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.13%.
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)-51.45%
EPS 3Y-21.7%
EPS 5Y-14.21%
EPS Q2Q%81.25%
Revenue 1Y (TTM)17.13%
Revenue growth 3Y12.41%
Revenue growth 5Y14.46%
Sales Q2Q%19.53%
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 25.93% on average per year.
Based on estimates for the next years, INCY will show a decrease in Revenue. The Revenue will decrease by -0.65% on average per year.
EPS Next Y348.67%
EPS Next 2Y130%
EPS Next 3Y88.04%
EPS Next 5Y25.93%
Revenue Next Year12.03%
Revenue Next 2Y11.23%
Revenue Next 3Y10.73%
Revenue Next 5Y-0.65%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 35.49, INCY can be considered very expensive at the moment.
INCY's Price/Earnings ratio is rather cheap when compared to the industry. INCY is cheaper than 93.76% of the companies in the same industry.
When comparing the Price/Earnings ratio of INCY to the average of the S&P500 Index (26.60), we can say INCY is valued slightly more expensively.
INCY is valuated reasonably with a Price/Forward Earnings ratio of 9.35.
Based on the Price/Forward Earnings ratio, INCY is valued cheaper than 96.43% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of INCY to the average of the S&P500 Index (22.43), we can say INCY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.49 | ||
| Fwd PE | 9.35 |
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 93.76% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, INCY is valued cheaply inside the industry as 94.12% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.76 | ||
| EV/EBITDA | 27.61 |
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 88.04% in the coming years.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y130%
EPS Next 3Y88.04%
5. Dividend
5.1 Amount
No dividends for INCY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
65.3
+1.49 (+2.34%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners97.01%
Inst Owner Change2.34%
Ins Owners1.98%
Ins Owner Change6.39%
Market Cap12.64B
Analysts73.94
Price Target75.54 (15.68%)
Short Float %3.39%
Short Ratio3
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)1
Avg EPS beat(2)0.95%
Min EPS beat(2)-10.01%
Max EPS beat(2)11.9%
EPS beat(4)1
Avg EPS beat(4)-3.77%
Min EPS beat(4)-14.75%
Max EPS beat(4)11.9%
EPS beat(8)3
Avg EPS beat(8)-3.5%
EPS beat(12)5
Avg EPS beat(12)-5.19%
EPS beat(16)7
Avg EPS beat(16)-6.87%
Revenue beat(2)2
Avg Revenue beat(2)2.51%
Min Revenue beat(2)1.09%
Max Revenue beat(2)3.94%
Revenue beat(4)3
Avg Revenue beat(4)2.09%
Min Revenue beat(4)-0.21%
Max Revenue beat(4)3.94%
Revenue beat(8)4
Avg Revenue beat(8)-0.33%
Revenue beat(12)6
Avg Revenue beat(12)-0.19%
Revenue beat(16)9
Avg Revenue beat(16)0.35%
PT rev (1m)-1.6%
PT rev (3m)-5.72%
EPS NQ rev (1m)-2.51%
EPS NQ rev (3m)-3.41%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)-0.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)0.97%
Revenue NY rev (3m)1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.49 | ||
| Fwd PE | 9.35 | ||
| P/S | 2.86 | ||
| P/FCF | 41.76 | ||
| P/OCF | 33.04 | ||
| P/B | 3.45 | ||
| P/tB | 3.71 | ||
| EV/EBITDA | 27.61 |
EPS(TTM)1.84
EY2.82%
EPS(NY)6.98
Fwd EY10.69%
FCF(TTM)1.56
FCFY2.39%
OCF(TTM)1.98
OCFY3.03%
SpS22.8
BVpS18.95
TBVpS17.59
PEG (NY)0.1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.37% | ||
| ROE | 0.58% | ||
| ROCE | 5.91% | ||
| ROIC | 4.67% | ||
| ROICexc | 16.3% | ||
| ROICexgc | 21.12% | ||
| OM | 5.39% | ||
| PM (TTM) | 0.48% | ||
| GM | 93.19% | ||
| FCFM | 6.86% |
ROA(3y)5.08%
ROA(5y)5.23%
ROE(3y)6.75%
ROE(5y)6.82%
ROIC(3y)7.24%
ROIC(5y)N/A
ROICexc(3y)25.32%
ROICexc(5y)N/A
ROICexgc(3y)31.6%
ROICexgc(5y)N/A
ROCE(3y)9.17%
ROCE(5y)N/A
ROICexcg growth 3Y-34.92%
ROICexcg growth 5Y-33.44%
ROICexc growth 3Y-36.33%
ROICexc growth 5Y-29.08%
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%
F-Score5
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.12 | ||
| Debt/EBITDA | 0.1 | ||
| Cap/Depr | 89.09% | ||
| Cap/Sales | 1.81% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 116.78% | ||
| Profit Quality | 1423.18% | ||
| Current Ratio | 2.04 | ||
| Quick Ratio | 2 | ||
| Altman-Z | 4.61 |
F-Score5
WACC9.88%
ROIC/WACC0.47
Cap/Depr(3y)83.51%
Cap/Depr(5y)185.09%
Cap/Sales(3y)1.73%
Cap/Sales(5y)3.66%
Profit Quality(3y)367.72%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-51.45%
EPS 3Y-21.7%
EPS 5Y-14.21%
EPS Q2Q%81.25%
EPS Next Y348.67%
EPS Next 2Y130%
EPS Next 3Y88.04%
EPS Next 5Y25.93%
Revenue 1Y (TTM)17.13%
Revenue growth 3Y12.41%
Revenue growth 5Y14.46%
Sales Q2Q%19.53%
Revenue Next Year12.03%
Revenue Next 2Y11.23%
Revenue Next 3Y10.73%
Revenue Next 5Y-0.65%
EBIT growth 1Y-66.6%
EBIT growth 3Y-44.05%
EBIT growth 5Y-23.34%
EBIT Next Year295.89%
EBIT Next 3Y80.02%
EBIT Next 5Y26.44%
FCF growth 1Y-47.44%
FCF growth 3Y-24.05%
FCF growth 5Y-17.01%
OCF growth 1Y-41.01%
OCF growth 3Y-23.52%
OCF growth 5Y-13.95%