INCYTE CORP (INCY) Stock Fundamental Analysis
USA - NASDAQ:INCY - US45337C1027 - Common Stock
93.48 USD
+0.89 (+0.96%)
94.5 USD
+1.02 (+1.09%)
We assign a fundamental rating of 6 out of 10 to INCY. INCY was compared to 534 industry peers in the Biotechnology industry. INCY scores excellent points on both the profitability and health parts. This is a solid base for a good stock. A decent growth rate in combination with a cheap valuation! Better keep an eye on INCY. These ratings would make INCY suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
INCY had positive earnings in the past year.
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.
1.2 Ratios
The Return On Assets of INCY (14.96%) is better than 95.32% of its industry peers.
INCY has a Return On Equity of 20.88%. This is amongst the best in the industry. INCY outperforms 95.51% of its industry peers.
With an excellent Return On Invested Capital value of 17.30%, INCY belongs to the best of the industry, outperforming 96.63% of the companies in the same industry.
INCY had an Average Return On Invested Capital over the past 3 years of 7.24%. This is significantly below the industry average of 15.51%.
The 3 year average ROIC (7.24%) for INCY is below the current ROIC(17.30%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.96% | ||
| ROE | 20.88% | ||
| ROIC | 17.3% |
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 (18.99%) than 94.19% of its industry peers.
INCY's Profit Margin has declined in the last couple of years.
INCY has a Operating Margin of 21.69%. This is amongst the best in the industry. INCY outperforms 95.32% of its industry peers.
In the last couple of years the Operating Margin of INCY has declined.
Looking at the Gross Margin, with a value of 93.41%, INCY belongs to the top of the industry, outperforming 93.45% of the companies in the same industry.
INCY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.69% | ||
| PM (TTM) | 18.99% | ||
| GM | 93.41% |
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.
The number of shares outstanding for INCY has been reduced compared to 1 year ago.
The number of shares outstanding for INCY has been reduced compared to 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 8.35. This indicates that INCY is financially healthy and has little risk of bankruptcy at the moment.
INCY has a Altman-Z score of 8.35. This is amongst the best in the industry. INCY outperforms 80.71% of its industry peers.
INCY has a debt to FCF ratio of 0.04. This is a very positive value and a sign of high solvency as it would only need 0.04 years to pay back of all of its debts.
INCY has a Debt to FCF ratio of 0.04. This is amongst the best in the industry. INCY outperforms 96.63% 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 44.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 8.35 |
ROIC/WACC1.98
WACC8.74%
2.3 Liquidity
A Current Ratio of 2.85 indicates that INCY has no problem at all paying its short term obligations.
INCY has a Current ratio of 2.85. This is in the lower half of the industry: INCY underperforms 65.92% of its industry peers.
INCY has a Quick Ratio of 2.78. This indicates that INCY is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of INCY (2.78) is worse than 64.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.85 | ||
| Quick Ratio | 2.78 |
3. Growth
3.1 Past
INCY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 575.79%, which is quite impressive.
The earnings per share for INCY have been decreasing by -14.21% on average. This is quite bad
INCY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.76%.
The Revenue has been growing by 14.46% on average over the past years. This is quite good.
EPS 1Y (TTM)575.79%
EPS 3Y-21.7%
EPS 5Y-14.21%
EPS Q2Q%111.21%
Revenue 1Y (TTM)14.76%
Revenue growth 3Y12.41%
Revenue growth 5Y14.46%
Sales Q2Q%20.05%
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 27.17% on average per year.
INCY is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.47% yearly.
EPS Next Y378.66%
EPS Next 2Y136.69%
EPS Next 3Y88.47%
EPS Next 5Y27.17%
Revenue Next Year15.16%
Revenue Next 2Y13.02%
Revenue Next 3Y11.75%
Revenue Next 5Y-0.47%
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.
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
The Price/Earnings ratio is 14.56, which indicates a correct valuation of INCY.
INCY's Price/Earnings ratio is rather cheap when compared to the industry. INCY is cheaper than 96.44% of the companies in the same industry.
INCY is valuated rather cheaply when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.64, INCY is valued correctly.
Based on the Price/Forward Earnings ratio, INCY is valued cheaper than 96.44% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of INCY to the average of the S&P500 Index (22.55), we can say INCY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.56 | ||
| Fwd PE | 12.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, INCY is valued cheaply inside the industry as 94.94% of the companies are valued more expensively.
INCY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. INCY is cheaper than 95.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.05 | ||
| EV/EBITDA | 13.76 |
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 88.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y136.69%
EPS Next 3Y88.47%
5. Dividend
5.1 Amount
INCY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
93.48
+0.89 (+0.96%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners103.23%
Inst Owner Change1.03%
Ins Owners1.85%
Ins Owner Change0.55%
Market Cap18.25B
Revenue(TTM)4.24B
Net Income(TTM)870.87M
Analysts74.55
Price Target87.59 (-6.3%)
Short Float %4.9%
Short Ratio5.36
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)2
Avg EPS beat(2)8.31%
Min EPS beat(2)4.72%
Max EPS beat(2)11.9%
EPS beat(4)2
Avg EPS beat(4)1.1%
Min EPS beat(4)-10.01%
Max EPS beat(4)11.9%
EPS beat(8)3
Avg EPS beat(8)-5.09%
EPS beat(12)5
Avg EPS beat(12)-7.34%
EPS beat(16)7
Avg EPS beat(16)-6.93%
Revenue beat(2)2
Avg Revenue beat(2)3.69%
Min Revenue beat(2)3.45%
Max Revenue beat(2)3.94%
Revenue beat(4)4
Avg Revenue beat(4)3%
Min Revenue beat(4)1.09%
Max Revenue beat(4)3.94%
Revenue beat(8)4
Avg Revenue beat(8)-0.25%
Revenue beat(12)6
Avg Revenue beat(12)-0.67%
Revenue beat(16)9
Avg Revenue beat(16)0.51%
PT rev (1m)3.56%
PT rev (3m)12.37%
EPS NQ rev (1m)-0.36%
EPS NQ rev (3m)0.39%
EPS NY rev (1m)0.14%
EPS NY rev (3m)6.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)2.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.56 | ||
| Fwd PE | 12.64 | ||
| P/S | 3.98 | ||
| P/FCF | 19.05 | ||
| P/OCF | 18.2 | ||
| P/B | 4.38 | ||
| P/tB | 4.69 | ||
| EV/EBITDA | 13.76 |
EPS(TTM)6.42
EY6.87%
EPS(NY)7.39
Fwd EY7.91%
FCF(TTM)4.91
FCFY5.25%
OCF(TTM)5.14
OCFY5.49%
SpS23.48
BVpS21.36
TBVpS19.91
PEG (NY)0.04
PEG (5Y)N/A
Graham Number55.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.96% | ||
| ROE | 20.88% | ||
| ROCE | 21.89% | ||
| ROIC | 17.3% | ||
| ROICexc | 47.5% | ||
| ROICexgc | 57.26% | ||
| OM | 21.69% | ||
| PM (TTM) | 18.99% | ||
| GM | 93.41% | ||
| FCFM | 20.9% |
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
ROICexgc growth 3Y-34.92%
ROICexgc 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-Score6
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.04 | ||
| Debt/EBITDA | 0.03 | ||
| Cap/Depr | 49.5% | ||
| Cap/Sales | 0.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.43% | ||
| Profit Quality | 110.01% | ||
| Current Ratio | 2.85 | ||
| Quick Ratio | 2.78 | ||
| Altman-Z | 8.35 |
F-Score6
WACC8.74%
ROIC/WACC1.98
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)575.79%
EPS 3Y-21.7%
EPS 5Y-14.21%
EPS Q2Q%111.21%
EPS Next Y378.66%
EPS Next 2Y136.69%
EPS Next 3Y88.47%
EPS Next 5Y27.17%
Revenue 1Y (TTM)14.76%
Revenue growth 3Y12.41%
Revenue growth 5Y14.46%
Sales Q2Q%20.05%
Revenue Next Year15.16%
Revenue Next 2Y13.02%
Revenue Next 3Y11.75%
Revenue Next 5Y-0.47%
EBIT growth 1Y1425.09%
EBIT growth 3Y-44.05%
EBIT growth 5Y-23.34%
EBIT Next Year352.21%
EBIT Next 3Y84.5%
EBIT Next 5Y24.25%
FCF growth 1Y34.45%
FCF growth 3Y-24.05%
FCF growth 5Y-17.01%
OCF growth 1Y28.43%
OCF growth 3Y-23.52%
OCF growth 5Y-13.95%
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 for 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.
What is the valuation of INCYTE CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for INCYTE CORP (INCY) is 14.56 and the Price/Book (PB) ratio is 4.38.
What is the earnings growth outlook for INCYTE CORP?
The Earnings per Share (EPS) of INCYTE CORP (INCY) is expected to grow by 378.66% in the next year.