Incyte Corporation
Incyte Corporation Fundamental Analysis
Incyte Corporation (INCY) shows strong financial fundamentals with a PE ratio of 15.41, profit margin of 25.03%, and ROE of 29.15%. The company generates $5.2B in annual revenue with strong year-over-year growth of 14.76%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 89.9/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze INCY's fundamental strength across five key dimensions:
Efficiency Score
ExcellentINCY demonstrates superior asset utilization.
Valuation Score
ExcellentINCY trades at attractive valuation levels.
Growth Score
ModerateINCY shows steady but slowing expansion.
Financial Health Score
ExcellentINCY maintains a strong and stable balance sheet.
Profitability Score
ExcellentINCY achieves industry-leading margins.
Key Financial Metrics
Is INCY Expensive or Cheap?
P/E Ratio
INCY trades at 15.41 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, INCY's PEG of 1.97 indicates fair valuation.
Price to Book
The market values Incyte Corporation at 3.84 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 13.08 times EBITDA. This signals the market has high growth expectations.
How Well Does INCY Make Money?
Net Profit Margin
For every $100 in sales, Incyte Corporation keeps $25.03 as profit after all expenses.
Operating Margin
Core operations generate 26.35 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $29.15 in profit for every $100 of shareholder equity.
ROA
Incyte Corporation generates $18.49 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Incyte Corporation generates strong operating cash flow of $1.42B, reflecting robust business health.
Free Cash Flow
Incyte Corporation generates strong free cash flow of $1.37B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.86 in free cash annually.
FCF Yield
INCY converts 6.78% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.41
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.97
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.84
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.89
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.01
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.32
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.29
vs 25 benchmark
ROA
Return on assets percentage
0.18
vs 25 benchmark
ROCE
Return on capital employed
0.25
vs 25 benchmark
How INCY Stacks Against Its Sector Peers
| Metric | INCY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.41 | 29.28 | Better (Cheaper) |
| ROE | 29.15% | 820.00% | Weak |
| Net Margin | 25.03% | -19743.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.26 | Strong (Low Leverage) |
| Current Ratio | 3.32 | 4.69 | Strong Liquidity |
| ROA | 18.49% | -17807.00% (disorted) | Strong |
INCY outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Incyte Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
103.87%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-92.43%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-51.04%
Industry Style: Defensive, Growth, Innovation
Declining