DB:ICY

Stock Analysis Report

Executive Summary

Incyte Corporation, a biopharmaceutical company, focuses on the discovery, development, and commercialization of various therapeutics in the United States.

Rewards

Trading at 40.8% below its fair value

Earnings are forecast to grow 25.76% per year

Earnings grew by 308.2% over the past year

Risk Analysis

No risks detected for ICY from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Incyte's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ICY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-12.1%

ICY

-11.1%

DE Biotechs

-9.1%

DE Market


1 Year Return

-12.8%

ICY

-2.9%

DE Biotechs

2.9%

DE Market

Return vs Industry: ICY underperformed the German Biotechs industry which returned -2.9% over the past year.

Return vs Market: ICY underperformed the German Market which returned 2.9% over the past year.


Shareholder returns

ICYIndustryMarket
7 Day-12.1%-11.1%-9.1%
30 Day-2.5%-12.8%-7.2%
90 Day-21.8%-9.6%-6.5%
1 Year-12.8%-12.8%-2.7%-2.9%6.1%2.9%
3 Year-48.3%-48.3%25.8%24.4%3.5%-5.6%
5 Year-18.7%-18.7%1.6%-0.5%8.0%-6.8%

Price Volatility Vs. Market

How volatile is Incyte's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Incyte undervalued compared to its fair value and its price relative to the market?

43.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ICY (€70.94) is trading below our estimate of fair value (€119.88)

Significantly Below Fair Value: ICY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ICY is poor value based on its PE Ratio (37.5x) compared to the Biotechs industry average (36.6x).

PE vs Market: ICY is poor value based on its PE Ratio (37.5x) compared to the German market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: ICY is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: ICY is overvalued based on its PB Ratio (6.5x) compared to the DE Biotechs industry average (3.2x).


Next Steps

Future Growth

How is Incyte forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

25.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ICY's forecast earnings growth (25.8% per year) is above the savings rate (-0.4%).

Earnings vs Market: ICY's earnings (25.8% per year) are forecast to grow faster than the German market (13.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ICY's revenue (14.8% per year) is forecast to grow faster than the German market (5.1% per year).

High Growth Revenue: ICY's revenue (14.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ICY's Return on Equity is forecast to be high in 3 years time (23%)


Next Steps

Past Performance

How has Incyte performed over the past 5 years?

37.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ICY has high quality earnings.

Growing Profit Margin: ICY's current net profit margins (20.7%) are higher than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: ICY has become profitable over the past 5 years, growing earnings by 37.2% per year.

Accelerating Growth: ICY's earnings growth over the past year (308.2%) exceeds its 5-year average (37.2% per year).

Earnings vs Industry: ICY earnings growth over the past year (308.2%) exceeded the Biotechs industry -4.7%.


Return on Equity

High ROE: ICY's Return on Equity (17.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Incyte's financial position?


Financial Position Analysis

Short Term Liabilities: ICY's short term assets ($2.5B) exceed its short term liabilities ($513.3M).

Long Term Liabilities: ICY's short term assets ($2.5B) exceed its long term liabilities ($315.0M).


Debt to Equity History and Analysis

Debt Level: ICY's debt to equity ratio (0.7%) is considered satisfactory.

Reducing Debt: ICY had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: ICY's debt is well covered by operating cash flow (3883.4%).

Interest Coverage: ICY's interest payments on its debt are well covered by EBIT (227x coverage).


Balance Sheet

Inventory Level: ICY has a low level of unsold assets or inventory.

Debt Coverage by Assets: ICY's debt is covered by short term assets (assets are 135.6x debt).


Next Steps

Dividend

What is Incyte's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.9%industryaverage1.1%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate ICY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ICY's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ICY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ICY's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ICY's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Hervé Hoppenot (59yo)

6.1yrs

Tenure

US$9,314,189

Compensation

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 Commerci ...


CEO Compensation Analysis

Compensation vs Market: Hervé's total compensation ($USD9.31M) is above average for companies of similar size in the German market ($USD4.64M).

Compensation vs Earnings: Hervé's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Hervé Hoppenot
Chairman6.1yrsUS$9.31m0.092% $13.7m
Maria Pasquale
Executive VP & General Counsel1.8yrsUS$3.62m0.0018% $264.6k
Wenqing Yao
Executive VP & Head of Discovery Chemistry5.3yrsUS$6.54m0.014% $2.2m
Steven Stein
Executive VP & Chief Medical Officer4.9yrsUS$6.61m0.0012% $173.4k
Christiana Stamoulis
Executive VP & CFO1yrsno data0.00097% $145.0k
Michael Morrissey
Executive VP & Head of Global Technical Operations4.1yrsno data0.016% $2.3m
Dashyant Dhanak
Executive VP & Chief Scientific Officer1.2yrsno data0.00055% $82.2k
Michael Booth
Divisional Vice President of Investor Relations & Corporate Social Responsibility5.9yrsno datano data
Pamela Murphy
Vice President of Investor Relations & Corporate Communications0yrsno datano data
Vijay Iyengar
Executive VP of Global Strategy & Corporate Development3.8yrsno data0.0023% $348.3k

4.1yrs

Average Tenure

54yo

Average Age

Experienced Management: ICY's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hervé Hoppenot
Chairman6.1yrsUS$9.31m0.092% $13.7m
Paul Brooke
Independent Director19.1yrsUS$522.37k0.11% $16.6m
Jean-Jacques Bienaimé
Independent Director5.1yrsUS$485.37k0.0027% $409.6k
Julian Baker
Vice Chairman & Lead Independent Director6.1yrsUS$503.37k0.26% $38.6m
Jacqualyn Fouse
Independent Director3.1yrsUS$477.37k0.00071% $106.1k
Paul Friedman
Independent Director18.3yrsUS$477.37k0.12% $18.6m
Wendy Dixon
Independent Director9.8yrsUS$492.37k0.0051% $759.4k
Edmund Harrigan
Director0.2yrsno datano data
Paul Clancy
Independent Director5.1yrsUS$497.37k0.00043% $64.3k

5.1yrs

Average Tenure

64yo

Average Age

Experienced Board: ICY's board of directors are considered experienced (5.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Incyte Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Incyte Corporation
  • Ticker: ICY
  • Exchange: DB
  • Founded: 1991
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$16.440b
  • Listing Market Cap: US$14.949b
  • Shares outstanding: 216.78m
  • Website: https://www.incyte.com

Number of Employees


Location

  • Incyte Corporation
  • 1801 Augustine Cut-Off
  • Wilmington
  • Delaware
  • 19803
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INCYNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDNov 1993
ICYDB (Deutsche Boerse AG)YesCommon SharesDEEURNov 1993
INCYWBAG (Wiener Boerse AG)YesCommon SharesATEURNov 1993
0J9PLSE (London Stock Exchange)YesCommon SharesGBUSDNov 1993
ICYETLX (Eurotlx)YesCommon SharesITEURNov 1993
INCY *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNNov 1993
I1NC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

Biography

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 III 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 steroid-naïve acute and chronic GVHD, as well as Phase III clinical trial for non-small cell lung cancer (NSCLC); and pemigatinib that is in Phase III clinical trial for treating cholangiocarcinoma, and Phase II for treating bladder cancer, 8p11 myeloproliferative syndrome, and tumor agnostic. 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.; Merus N.V.; Calithera Biosciences, Inc; MacroGenics, Inc.; Syros Pharmaceuticals, Inc.; and Innovent Biologics, Inc. The company was founded in 1991 and is headquartered in Wilmington, Delaware. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 20:32
End of Day Share Price2020/02/28 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.