Incyte Corporation, a biopharmaceutical company, focuses on the discovery, development, and commercialization of various therapeutics in the United States.
The last earnings update was 20 days ago.
Discounted Cash Flow Calculation for WBAG:INCY using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
WBAG:INCY DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Incyte's share price is below the future cash flow value, and at a moderate discount (> 20%).
Incyte's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Incyte's earnings available for a low price, and how does
this compare to other companies in the same industry?
Incyte's earnings are expected to grow significantly at over 20% yearly.
Incyte's revenue is expected to grow by 15.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Incyte's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Hervé Hoppenot has been the Chairman of the Board at Incyte Corporation since May 2015 and as its Chief Executive Officer and President since January 13, 2014. Mr. Hoppenot served as the Chief Commercial Officer and Head of Global Product Strategy & Scientific Development at Incyte Corporation, where he oversaw medical affairs, global brand leadership, business development and licensing, health economics & pricing, early phase commercial development, strategic capabilities and global sales excellence for Oncology. He joined Novartis in 2003 and served as its Senior Vice President and Head of Global Marketing from 2003 to September 2006. He was responsible for translational medicine, development, approval and commercialization, which included $11 billion in global sales, the largest oncology pipeline in the industry and 8,000 employees in 50 countries. He has more than twenty-five years of international experience. He started his career in France with Rhone Poulenc, later known as Aventis, where he served in several senior roles of increasing responsibility, including Vice President of Oncology and Head of the U.S. Oncology business unit. Mr. Hoppenot has been a Director of Incyte Corporation since January 13, 2014. Mr. Hoppenot served as the President of Novartis Oncology from January 2010 to January 2014. Prior to that, Mr. Hoppenot served in other executive positions at Novartis Pharmaceuticals Corporation, serving from September 2006 to January 2010 as Executive Vice President, Chief Commercial Officer of Novartis Oncology and Head of Global Product Strategy & Scientific Development of Novartis Pharmaceuticals Corporation. Prior to joining Novartis, Mr. Hoppenot served in various increasingly senior roles at Aventis S.A. (formerly Rhône-Poulenc S.A.), a pharmaceutical company, including as Vice President Oncology US of Aventis Pharmaceuticals, Inc. from 2000 to 2003 and Vice President US Oncology Operations of Rhone-Poulenc Rorer Pharmaceuticals, Inc. from 1998 to 2000. Mr. Hoppenot is also a director of Cellectis S.A. He holds a Diploma from ESSEC International Business School.
Hervé's compensation has been consistent with company performance over the past year, both up more than 20%.
Insufficient data for Hervé to establish whether their remuneration is reasonable compared to companies of similar size in .
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Incyte management team is about average.
Executive VP & General Counsel
Executive VP & Head of Discovery Chemistry
Executive VP & Chief Medical Officer
Executive VP & CFO
Head of Global Technical Operations & Corporate Senior VP
Executive VP & Chief Scientific Officer
Vice President of Investor Relations
Vice President of Investor Relations & Corporate Communications
Executive VP of Global Strategy & Corporate Development
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Incyte board of directors is about average.
Incyte Corporation, a biopharmaceutical company, focuses on the discovery, development, and commercialization of various therapeutics in the United States. The company offers JAKAFI, a drug for the treatment of myelofibrosis and polycythemia vera cancers; and Iclusig, a kinase inhibitor to treat chronic myeloid leukemia and philadelphia-chromosome positive acute lymphoblastic leukemia. Its clinical stage products include ruxolitinib, a drug in Phase III clinical trial for steroid-refractory acute graft-versus-host-diseases (GVHD); and Phase II trial for the treatment of essential thrombocythemia and refractory myelofibrosis. In addition, the company engages in the development of itacitinib, which is in Phase III clinical trial to treat naïve acute and chronic GVHD, as well as Phase I/II clinical trial in combination with osimertinib for non-small cell lung cancer (NSCLC); and pemigatinib that is in Phase II clinical trial for treating bladder cancer, cholangiocarcinoma, and 8p11 myeloproliferative syndrome, as well as a pivotal program for solid tumors with driver activations of FGF/FGFR. Further, it is involved in developing INCMGA0012 that is in Phase II clinical trials for MSI-high endometrial cancer, merkel cell carcinoma, and anal cancer. Additionally, the company develops Parsaclisib, which is in Phase II clinical trial for follicular lymphoma, marginal zone lymphoma, and mantel cell lymphoma. It has collaboration agreements with Novartis International Pharmaceutical Ltd.; Eli Lilly and Company; Agenus Inc.; Jiangsu Hengrui Medicine Co., Ltd.; Merus N.V.; Calithera Biosciences, Inc; MacroGenics, Inc.; Syros Pharmaceuticals, Inc.; and Innovent Biologics, Inc., as well as BriaCell Therapeutics Corp. for treating cancer. The company was founded in 1991 and is headquartered in Wilmington, Delaware.
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