NasdaqGS:INCY

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with high growth potential.


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


Market Performance


7 Day Return

2.2%

INCY

3.8%

US Biotechs

2.3%

US Market


1 Year Return

20.2%

INCY

-10.0%

US Biotechs

5.6%

US Market

Return vs Industry: INCY exceeded the US Biotechs industry which returned -10% over the past year.

Return vs Market: INCY exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

INCYIndustryMarket
7 Day2.2%3.8%2.3%
30 Day-2.1%-2.8%-1.0%
90 Day-3.9%-2.6%-0.7%
1 Year20.2%20.2%-9.2%-10.0%7.9%5.6%
3 Year-12.5%-12.5%14.7%10.7%45.6%36.3%
5 Year40.9%40.9%2.2%-2.8%65.8%47.6%

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

Valuation

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

30.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: INCY ($77.43) is trading below our estimate of fair value ($111.19)

Significantly Undervalued: INCY is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: INCY is poor value based on its PE Ratio (54.1x) compared to the Biotechs industry average (17.2x).

PE vs Market: INCY is poor value based on its PE Ratio (54.1x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: INCY is overvalued based on its PB Ratio (7.4x) compared to the US Biotechs industry average (2.6x).


Next Steps

Future Growth

How is Incyte forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

35.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INCY's forecast earnings growth (35.1% per year) is above the savings rate (2.7%).

Earnings vs Market: INCY's earnings (35.1% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: INCY's revenue (15.9% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: INCY's revenue (15.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: INCY's Return on Equity is forecast to be high in 3 years time (22.2%)


Next Steps

Past Performance

How has Incyte performed over the past 5 years?

18.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: INCY has become profitable over the past 5 years, growing earnings by 18.1% per year.

Accelerating Growth: INCY has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: INCY has become profitable in the last year, making it difficult to compare its past year earnings growth to the Biotechs industry (78.4%).


Return on Equity

High ROE: INCY's Return on Equity (13.6%) is considered low.


Return on Assets

ROA vs Industry: INCY's Return on Assets is below or equal to the Biotechs industry average last year.


Return on Capital Employed

ROCE Improving: INCY has not improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Incyte's financial position?


Financial Position Analysis

Short Term Liabilities: INCY's short term assets ($2.1B) exceeds its short term liabilities ($367.1M)

Long Term Liabilities: INCY's short term assets (2.1B) exceeds its long term liabilities (333.3M)


Debt to Equity History and Analysis

Debt Level: INCY's debt to equity ratio (0.8%) is considered satisfactory

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

Debt Coverage: INCY's debt is well covered by operating cash flow (3312.1%).

Interest Coverage: INCY's interest payments on its debt are well covered by EBIT (220.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: INCY's debt is covered by short term assets (assets are 115.251650x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.0%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if INCY'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 INCY's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Incyte's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Hervé Hoppenot (59yo)

5.8yrs

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 ($USD9.31M) is about average for companies of similar size in the US market ($USD11.23M).

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


Management Age and Tenure

3.8yrs

Average Tenure

52yo

Average Age

Experienced Management: INCY's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

61.5yo

Average Age

Experienced Board: INCY's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

Insider Buying: INCY insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$146,65405 Aug 19
Jean-Jacques Bienaimé
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,724
Max PriceUS$85.16
SellUS$76,63418 Jul 19
Barry Flannelly
EntityIndividual
Shares959
Max PriceUS$79.91
BuyUS$68,76509 Nov 18
Jean-Jacques Bienaimé
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$68.91

Ownership Breakdown


Management Team

  • Pamela Murphy (68yo)

    Vice President of Investor Relations & Corporate Communications

    • Tenure: 0yrs
  • Mike Booth (48yo)

    Divisional Vice President of Investor Relations & Corporate Social Responsibility

    • Tenure: 5.6yrs
  • Christiana Stamoulis (48yo)

    Executive VP & CFO

    • Tenure: 0.7yrs
  • Wenqing Yao (56yo)

    Executive VP & Head of Discovery Chemistry

    • Tenure: 5yrs
    • Compensation: US$6.54m
  • Hervé Hoppenot (59yo)

    Chairman

    • Tenure: 5.8yrs
    • Compensation: US$9.31m
  • Steven Stein (52yo)

    Executive VP & Chief Medical Officer

    • Tenure: 4.6yrs
    • Compensation: US$6.61m
  • Michael Morrissey

    Executive VP & Head of Global Technical Operations

    • Tenure: 3.8yrs
  • Vijay Iyengar (46yo)

    Executive VP of Global Strategy & Corporate Development

    • Tenure: 3.4yrs
  • Maria Pasquale

    Executive VP & General Counsel

    • Tenure: 1.5yrs
    • Compensation: US$3.62m
  • Dashyant Dhanak

    Executive VP & Chief Scientific Officer

    • Tenure: 0.8yrs

Board Members

  • Paul Brooke (73yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$522.37k
  • Jean-Jacques Bienaimé (66yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$485.37k
  • Jim Baker (52yo)

    • Tenure: 5.8yrs
    • Compensation: US$503.37k
  • Jackie Fouse (58yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$477.37k
  • Paul Friedman (76yo)

    Independent Director

    • Tenure: 17.9yrs
    • Compensation: US$477.37k
  • Wendy Dixon (64yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$492.37k
  • Paul Clancy (57yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$497.37k
  • Hervé Hoppenot (59yo)

    Chairman

    • Tenure: 5.8yrs
    • Compensation: US$9.31m

Company Information

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


Key Information

  • Name: Incyte Corporation
  • Ticker: INCY
  • Exchange: NasdaqGS
  • Founded: 1991
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$16.653b
  • Shares outstanding: 215.07m
  • 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
INCY *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNNov 1993

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 treatme ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:38
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.