INCYTE CORP (INCY) Stock Fundamental Analysis
NASDAQ:INCY - Nasdaq - US45337C1027 - Common Stock - Currency: USD
INCY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 566 industry peers in the Biotechnology industry. INCY has an excellent profitability rating, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on INCY. 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.
In the past year INCY had a positive cash flow from operations.
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
The Return On Assets of INCY (0.60%) is better than 90.99% of its industry peers.
INCY's Return On Equity of 0.95% is amongst the best of the industry. INCY outperforms 91.70% of its industry peers.
With an excellent Return On Invested Capital value of 2.32%, INCY belongs to the best of the industry, outperforming 92.76% 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 14.24%.
The last Return On Invested Capital (2.32%) for INCY is well below the 3 year average (7.24%), which needs to be investigated, but indicates that INCY had better years and this may not be a problem.
| Industry Rank | Sector 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
1.3 Margins
With an excellent Profit Margin value of 0.77%, INCY belongs to the best of the industry, outperforming 91.70% of the companies in the same industry.
In the last couple of years the Profit Margin of INCY has declined.
INCY has a better Operating Margin (2.63%) than 92.76% of its industry peers.
In the last couple of years the Operating Margin of INCY has declined.
The Gross Margin of INCY (93.20%) is better than 93.29% 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 | 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), INCY is destroying value.
INCY has less shares outstanding than it did 1 year ago.
The number of shares outstanding for INCY has been reduced compared to 5 years ago.
Compared to 1 year ago, INCY has a worse debt to assets ratio.
2.2 Solvency
INCY has an Altman-Z score of 4.44. This indicates that INCY is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.44, INCY is in the better half of the industry, outperforming 79.15% 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 96.82% 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.
The Debt to Equity ratio of INCY (0.01) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.15 | ||
| Altman-Z | 4.44 |
ROIC/WACC0.23
WACC9.95%
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 75.62% of the companies in the same industry.
INCY has a Quick Ratio of 1.94. This is a normal value and indicates that INCY is financially healthy and should not expect problems in meeting its short term obligations.
INCY has a worse Quick ratio (1.94) than 74.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.94 |
3. Growth
3.1 Past
The earnings per share for INCY have decreased strongly by -51.45% in the last year.
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%.
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)14.76%
Revenue growth 3Y12.41%
Revenue growth 5Y14.46%
Sales Q2Q%19.53%
3.2 Future
The Earnings Per Share is expected to grow by 25.93% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -0.65% on average over the next years.
EPS Next Y350.35%
EPS Next 2Y130.24%
EPS Next 3Y87.87%
EPS Next 5Y25.93%
Revenue Next Year11.03%
Revenue Next 2Y10.11%
Revenue Next 3Y9.98%
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.
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 34.05, INCY can be considered very expensive at the moment.
Based on the Price/Earnings ratio, INCY is valued cheaper than 94.17% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.98. INCY is around the same levels.
With a Price/Forward Earnings ratio of 8.95, the valuation of INCY can be described as very reasonable.
97.17% of the companies in the same industry are more expensive than INCY, based on the Price/Forward Earnings ratio.
INCY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.05 | ||
| Fwd PE | 8.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, INCY is valued cheaper than 93.46% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, INCY is valued cheaply inside the industry as 93.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.68 | ||
| EV/EBITDA | 42.98 |
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 87.87% in the coming years.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y130.24%
EPS Next 3Y87.87%
5. Dividend
5.1 Amount
No dividends for INCY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
62.66
+2.23 (+3.69%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners97.01%
Inst Owner Change0.33%
Ins Owners1.98%
Ins Owner Change6.39%
Market Cap12.13B
Analysts73.94
Price Target75.43 (20.38%)
Short Float %3.93%
Short Ratio3.69
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)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)-5.25%
PT rev (3m)-6.07%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)-6.33%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)-5.09%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.05 | ||
| Fwd PE | 8.95 | ||
| P/S | 2.86 | ||
| P/FCF | 48.68 | ||
| P/OCF | 36.16 | ||
| P/B | 3.52 | ||
| P/tB | 3.82 | ||
| EV/EBITDA | 42.98 |
EPS(TTM)1.84
EY2.94%
EPS(NY)7
Fwd EY11.17%
FCF(TTM)1.29
FCFY2.05%
OCF(TTM)1.73
OCFY2.77%
SpS21.92
BVpS17.82
TBVpS16.42
PEG (NY)0.1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 4.44 |
F-Score5
WACC9.95%
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)-51.45%
EPS 3Y-21.7%
EPS 5Y-14.21%
EPS Q2Q%81.25%
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%19.53%
Revenue Next Year11.03%
Revenue Next 2Y10.11%
Revenue Next 3Y9.98%
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%