Strong Gross Profit Margin
Strong Liquidity Ratios
Minimal Debt Levels
📈 Strong Revenue Growth
🌍 Revenue Diversification
💰 Strong Financial Position
🚀 Upcoming Product Launches
🔬 Robust Pipeline Development
Extremely High P/E Ratio
High P/FCF Ratio
Low Net Profit Margin
Low Return on Equity
⚖️ Pricing Pressures
Incyte demonstrates strong business quality through robust revenue growth, diversification, and a solid financial foundation. Future prospects appear promising with multiple new product launches and a rich pipeline, though pricing pressures may pose challenges.
Analysis Date: February 10, 2025
Last Updated: March 12, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$6.06
Current Market Price: $56.61
IV/P Ratio: 0.11x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
-834.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for INCY
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (384.69)
P/B ratio ≤ 1.5 (3.64)
Current ratio ≥ 2.0 (1.97x)
Long-term debt < Net current assets (0.02x)
Margin of safety (-834.0%)
INCY does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
The net profit margin is only 0.77%, indicating that the company is not very efficient at converting revenue into actual profit.
Return on equity is quite low at 0.87%, which suggests that the company is not generating significant returns on shareholder equity.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
0.87%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-16)
Return on Assets (ROA)
Measures how efficiently a company uses its assets to generate profits
3.70%
Higher values indicate better asset utilization
TTM (as of 2025-04-16)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
92.26%
Higher values indicate better efficiency in production
TTM (as of 2025-04-16)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
0.77%
Higher values indicate better overall profitability
TTM (as of 2025-04-16)
INCY has a current ratio of 1.97 and a quick ratio of 1.94, indicating good short-term financial health and ability to meet obligations.
The debt-to-equity ratio is very low at 0.0126, indicating that the company is not heavily reliant on debt for financing.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.01x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
1.97x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
Incyte reported total revenues of $4.2 billion for 2024, reflecting a 15% growth compared to 2023. Jakafi's consistent performance with an 8% increase in net sales to $2.8 billion showcases the company's stability in its core offerings.
The significant growth of Opzelura, which saw a 50% increase to $508 million, demonstrates Incyte's ability to diversify its revenue streams beyond Jakafi, enhancing the company's resilience against market fluctuations.
Incyte ended 2024 with $2.2 billion in cash and no debt, indicating a robust financial position that supports ongoing investments in R&D and strategic initiatives.
Incyte is set to launch multiple new products in 2025, including Niktimvo and ruxolitinib cream for pediatric atopic dermatitis, which are projected to collectively generate $1 billion in incremental revenues by 2029, indicating strong growth potential.
Incyte plans to initiate at least three Phase 3 studies and has numerous pivotal data readouts expected in 2025, showcasing a strong commitment to innovation and addressing unmet medical needs.
The company anticipates lower net pricing due to IRA-imposed price increase caps and continued growth in 340B volumes, which could impact revenue growth from Jakafi.