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INCYTE CORP (INCY) Stock Fundamental Analysis

NASDAQ:INCY - Nasdaq - US45337C1027 - Common Stock - Currency: USD

56.41  -1.8 (-3.09%)

Fundamental Rating

6

Taking everything into account, INCY scores 6 out of 10 in our fundamental rating. INCY was compared to 568 industry peers in the Biotechnology industry. INCY scores excellent on profitability, but there are some minor concerns on its financial health. INCY may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, INCY could be worth investigating further for value investing!.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

In the past year INCY was profitable.
In the past year INCY had a positive cash flow from operations.
Of the past 5 years INCY 4 years were profitable.
INCY had a positive operating cash flow in 4 of the past 5 years.
INCY Yearly Net Income VS EBIT VS OCF VS FCFINCY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M 600M 800M

1.2 Ratios

INCY's Return On Assets of 0.60% is amongst the best of the industry. INCY outperforms 91.02% of its industry peers.
INCY's Return On Equity of 0.95% is amongst the best of the industry. INCY outperforms 91.90% of its industry peers.
The Return On Invested Capital of INCY (2.32%) is better than 92.78% of its industry peers.
The Average Return On Invested Capital over the past 3 years for INCY is significantly below the industry average of 14.25%.
The 3 year average ROIC (7.24%) for INCY is well above the current ROIC(2.32%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 0.6%
ROE 0.95%
ROIC 2.32%
ROA(3y)5.08%
ROA(5y)5.23%
ROE(3y)6.75%
ROE(5y)6.82%
ROIC(3y)7.24%
ROIC(5y)N/A
INCY Yearly ROA, ROE, ROICINCY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20

1.3 Margins

The Profit Margin of INCY (0.77%) is better than 91.73% of its industry peers.
INCY's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 2.63%, INCY belongs to the top of the industry, outperforming 92.78% of the companies in the same industry.
INCY's Operating Margin has declined in the last couple of years.
The Gross Margin of INCY (93.20%) is better than 93.13% 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 RankSector Rank
OM 2.63%
PM (TTM) 0.77%
GM 93.2%
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%
INCY Yearly Profit, Operating, Gross MarginsINCY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60 80

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6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
Compared to 1 year ago, INCY has a worse debt to assets ratio.
INCY Yearly Shares OutstandingINCY Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
INCY Yearly Total Debt VS Total AssetsINCY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.2 Solvency

INCY has an Altman-Z score of 4.31. This indicates that INCY is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.31, INCY belongs to the best of the industry, outperforming 80.63% of the companies in the same industry.
INCY has a debt to FCF ratio of 0.15. This is a very positive value and a sign of high solvency as it would only need 0.15 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.15, INCY belongs to the top of the industry, outperforming 96.83% 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.
INCY has a Debt to Equity ratio (0.01) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 0.15
Altman-Z 4.31
ROIC/WACC0.23
WACC10.19%
INCY Yearly LT Debt VS Equity VS FCFINCY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B 5B

2.3 Liquidity

A Current Ratio of 1.97 indicates that INCY should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.97, INCY is doing worse than 75.18% of the companies in the same industry.
A Quick Ratio of 1.94 indicates that INCY should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.94, INCY is doing worse than 74.30% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.97
Quick Ratio 1.94
INCY Yearly Current Assets VS Current LiabilitesINCY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

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4

3. Growth

3.1 Past

INCY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -62.50%.
The earnings per share for INCY have been decreasing by -14.21% on average. This is quite bad
Looking at the last year, INCY shows a quite strong growth in Revenue. The Revenue has grown by 14.76% in the last year.
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)-62.5%
EPS 3Y-21.7%
EPS 5Y-14.21%
EPS Q2Q%34.91%
Revenue 1Y (TTM)14.76%
Revenue growth 3Y12.41%
Revenue growth 5Y14.46%
Sales Q2Q%16.32%

3.2 Future

INCY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.93% yearly.
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 Y350.35%
EPS Next 2Y130.24%
EPS Next 3Y87.87%
EPS Next 5Y25.93%
Revenue Next Year10.96%
Revenue Next 2Y10.08%
Revenue Next 3Y10.03%
Revenue Next 5Y-0.65%

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.
INCY Yearly Revenue VS EstimatesINCY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 1B 2B 3B 4B 5B
INCY Yearly EPS VS EstimatesINCY Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 2 4 6 8

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8

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 42.73, INCY can be considered very expensive at the moment.
93.31% of the companies in the same industry are more expensive than INCY, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.29. INCY is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 9.49 indicates a reasonable valuation of INCY.
INCY's Price/Forward Earnings ratio is rather cheap when compared to the industry. INCY is cheaper than 97.18% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of INCY to the average of the S&P500 Index (21.32), we can say INCY is valued rather cheaply.
Industry RankSector Rank
PE 42.73
Fwd PE 9.49
INCY Price Earnings VS Forward Price EarningsINCY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

93.13% of the companies in the same industry are more expensive than INCY, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, INCY is valued cheaper than 93.84% of the companies in the same industry.
Industry RankSector Rank
P/FCF 43.83
EV/EBITDA 40.84
INCY Per share dataINCY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

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.
The decent profitability rating of INCY may justify a higher PE ratio.
INCY's earnings are expected to grow with 87.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y130.24%
EPS Next 3Y87.87%

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0

5. Dividend

5.1 Amount

No dividends for INCY!.
Industry RankSector Rank
Dividend Yield N/A

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INCYTE CORP

NASDAQ:INCY (4/21/2025, 3:52:09 PM)

56.41

-1.8 (-3.09%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)02-10 2025-02-10/bmo
Earnings (Next)04-29 2025-04-29/bmo
Inst Owners97.01%
Inst Owner Change0.31%
Ins Owners1.98%
Ins Owner Change6.39%
Market Cap10.92B
Analysts73.94
Price Target76.76 (36.08%)
Short Float %3.09%
Short Ratio3.66
Dividend
Industry RankSector 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)0
Avg EPS beat(2)-6.12%
Min EPS beat(2)-10.01%
Max EPS beat(2)-2.22%
EPS beat(4)0
Avg EPS beat(4)-13.12%
Min EPS beat(4)-25.52%
Max EPS beat(4)-2.22%
EPS beat(8)2
Avg EPS beat(8)-11.48%
EPS beat(12)4
Avg EPS beat(12)-7.85%
EPS beat(16)7
Avg EPS beat(16)-7.49%
Revenue beat(2)2
Avg Revenue beat(2)2.31%
Min Revenue beat(2)1.09%
Max Revenue beat(2)3.54%
Revenue beat(4)2
Avg Revenue beat(4)-0.52%
Min Revenue beat(4)-6.49%
Max Revenue beat(4)3.54%
Revenue beat(8)3
Avg Revenue beat(8)-1.79%
Revenue beat(12)5
Avg Revenue beat(12)-0.87%
Revenue beat(16)8
Avg Revenue beat(16)-0.52%
PT rev (1m)-3.58%
PT rev (3m)-4.42%
EPS NQ rev (1m)1.82%
EPS NQ rev (3m)-6.33%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-5.09%
Revenue NQ rev (1m)-0.98%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.49%
Valuation
Industry RankSector Rank
PE 42.73
Fwd PE 9.49
P/S 2.57
P/FCF 43.83
P/OCF 32.55
P/B 3.17
P/tB 3.43
EV/EBITDA 40.84
EPS(TTM)1.32
EY2.34%
EPS(NY)5.94
Fwd EY10.54%
FCF(TTM)1.29
FCFY2.28%
OCF(TTM)1.73
OCFY3.07%
SpS21.92
BVpS17.82
TBVpS16.42
PEG (NY)0.12
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.6%
ROE 0.95%
ROCE 2.94%
ROIC 2.32%
ROICexc 7.51%
ROICexgc 9.75%
OM 2.63%
PM (TTM) 0.77%
GM 93.2%
FCFM 5.87%
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 Turnover0.78
Health
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 0.15
Debt/EBITDA 0.17
Cap/Depr 96.66%
Cap/Sales 2.03%
Interest Coverage 250
Cash Conversion 166.92%
Profit Quality 763.68%
Current Ratio 1.97
Quick Ratio 1.94
Altman-Z 4.31
F-Score5
WACC10.19%
ROIC/WACC0.23
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)-62.5%
EPS 3Y-21.7%
EPS 5Y-14.21%
EPS Q2Q%34.91%
EPS Next Y350.35%
EPS Next 2Y130.24%
EPS Next 3Y87.87%
EPS Next 5Y25.93%
Revenue 1Y (TTM)14.76%
Revenue growth 3Y12.41%
Revenue growth 5Y14.46%
Sales Q2Q%16.32%
Revenue Next Year10.96%
Revenue Next 2Y10.08%
Revenue Next 3Y10.03%
Revenue Next 5Y-0.65%
EBIT growth 1Y-82.87%
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-46.32%
FCF growth 3Y-24.05%
FCF growth 5Y-17.01%
OCF growth 1Y-32.46%
OCF growth 3Y-23.52%
OCF growth 5Y-13.95%