Incyte (INCY) AI Stock Analysis

• Market Cap: $11.54B
• Dividend Yield: N/A
• Average Volume (3M): 2.11M
• Price to Earnings (P/E): 184.4
• Beta (1Y): 0.53
• Revenue Growth: 17.13%
• EPS Growth: -88.78%
• Country: US
• Employees: 2,617
• Sector: Healthcare
• Sector Strength: 53
• Industry: Biotechnology
• EPS (TTM): 1.16
• Shares Outstanding: 193,569,930
• 10 Day Avg. Volume: 1,952,559
• 30 Day Avg. Volume: 2,109,397
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.45
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $73.86
• Price Target Upside: 23.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

Incyte's overall stock score of 75 reflects its strong financial performance and a positive outlook from the recent earnings call, which highlighted significant revenue growth and successful product launches. These strengths are somewhat offset by the technical analysis indicating potential bearish trends and a high P/E ratio suggesting overvaluation. While the company is financially stable, improving profitability margins could further enhance its stock performance.

Positive Factors

Drug Efficacy

New 18 week pivotal Phase 3 data for povorcitinib in hidradenitis suppurativa demonstrates continued improvement in the primary endpoint from week 12 in both parallel trials.

Financial Outlook

Analyst's price target increased to $95, reflecting the positive financial updates and pipeline advancements.

Sales Growth

Jakafi sales exceeded expectations with a 10% growth over consensus estimates, driven by significant growth in polycythemia vera patients.

Negative Factors

Competition and Exclusivity

Opzelura revenue will be challenged by lower tube usage and assets like povorcitinib and axatilimab will not address the Jakafi loss of exclusivity.

Market Performance

Underperformance of Opzelura gives pause despite topline growth ahead of expectations.

Revenue Challenges

Underperform rating supported by analysis suggesting Opzelura revenue will be challenged by lower tube usage.

Incyte Business Overview & Revenue Model

Company Description

Incyte Corporation, a biopharmaceutical company, focuses on the discovery, development, and commercialization of proprietary therapeutics in the United States and internationally. The company offers JAKAFI, a drug for the treatment of myelofibrosis and polycythemia vera; PEMAZYRE, a fibroblast growth factor receptor kinase inhibitor that act as oncogenic drivers in various liquid and solid tumor types; and ICLUSIG, a kinase inhibitor to treat chronic myeloid leukemia and philadelphia-chromosome positive acute lymphoblastic leukemia. Its clinical stage products include ruxolitinib, a steroid-refractory chronic graft-versus-host-diseases (GVHD); itacitinib, which is in Phase II/III clinical trial to treat naive chronic GVHD; and pemigatinib for treating bladder cancer, cholangiocarcinoma, myeloproliferative syndrome, and tumor agnostic. In addition, the company engages in developing Parsaclisib, which is in Phase II clinical trial for follicular lymphoma, marginal zone lymphoma, and mantel cell lymphoma. Additionally, it develops Retifanlimab that is in Phase II clinical trials for MSI-high endometrial cancer, merkel cell carcinoma, and anal cancer, as well as in Phase II clinical trials for patients with non-small cell lung cancer. It has collaboration agreements with Novartis International Pharmaceutical Ltd.; Eli Lilly and Company; Agenus Inc.; Calithera Biosciences, Inc; MacroGenics, Inc.; Merus N.V.; Syros Pharmaceuticals, Inc.; Innovent Biologics, Inc.; Zai Lab Limited; Cellenkos, Inc.; and Nimble Therapeutics, as well as clinical collaborations with MorphoSys AG and Xencor, Inc. to investigate the combination of tafasitamab, plamotamab, and lenalidomide in patients with relapsed or refractory diffuse large B-cell lymphoma, and relapsed or refractory follicular lymphoma. The company was incorporated in 1991 and is headquartered in Wilmington, Delaware.

How the Company Makes Money

Incyte makes money primarily through the sale of its pharmaceutical products, with a significant portion of its revenue generated from its flagship drug, Jakafi (ruxolitinib), which is used for treating myelofibrosis and polycythemia vera. The company also earns revenue from licensing agreements and collaborations with other pharmaceutical companies, where it receives milestone payments and royalties. Additionally, Incyte invests in research and development to expand its product pipeline, ensuring a continuous flow of new and innovative treatments to sustain its growth and profitability.

Incyte Financial Statement Overview

Summary

Incyte presents a solid financial position with consistent revenue growth and strong cash flow generation. The balance sheet is robust, characterized by low leverage and a high equity ratio. Profitability margins are a potential area for improvement, as net profit remains low relative to revenue. Overall, the company is financially stable with opportunities to enhance operational efficiency and profitability.

Income Statement

Incyte has shown a consistent increase in total revenue over the years, with a notable revenue growth rate of 5.1% for the TTM. The gross profit margin is robust at 92.3% for the TTM, indicating strong cost management. However, the net profit margin is relatively low at 0.5% due to significant expenses affecting net income. EBIT and EBITDA margins are also modest at 4.0% and 8.0%, respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.01, indicating conservative financial leverage. The equity ratio is healthy at 63.8%, reflecting a solid capital structure primarily financed by equity. Return on equity is low at 0.6%, suggesting limited returns to shareholders relative to equity invested.

Cash Flow

Incyte's cash flow performance is strong with a 16.0% increase in free cash flow for the TTM, demonstrating effective cash generation. The operating cash flow to net income ratio stands at 18.0, indicating robust cash flow relative to net income. The free cash flow to net income ratio is high at 13.6, pointing to significant free cash flow generation despite low net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.24B	3.70B	3.39B	2.99B	2.67B
	Gross Profit
3.93B	3.44B	3.19B	2.84B	2.54B
	EBIT
61.37M	620.52M	579.44M	585.78M	-240.29M
	EBITDA
408.16M	919.43M	599.64M	630.20M	-178.24M
	Net Income Common Stockholders
32.62M	597.60M	340.66M	948.58M	-295.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.16B	3.66B	3.24B	2.35B	1.80B
	Total Assets
5.44B	6.78B	5.84B	4.93B	3.56B
	Total Debt
43.54M	38.29M	44.64M	34.27M	34.86M
	Net Debt
-1.64B	-3.18B	-2.91B	-2.02B	-1.48B
	Total Liabilities
2.00B	1.59B	1.47B	1.16B	949.65M
	Stockholders Equity
3.45B	5.19B	4.37B	3.77B	2.61B
Cash Flow		Free Cash Flow
249.07M	449.00M	892.11M	568.48M	-311.98M
	Operating Cash Flow
335.34M	496.49M	969.94M	749.49M	-124.60M
	Investing Cash Flow
157.52M	-207.68M	-78.54M	-207.70M	-269.00M
	Financing Cash Flow
-2.02B	-20.03M	-794.00K	6.18M	71.71M

Incyte Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 59.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INCY, the sentiment is Negative. The current price of 59.73 is above the 20-day moving average (MA) of 59.21, below the 50-day MA of 62.38, and below the 200-day MA of 67.51, indicating a neutral trend. The MACD of -0.28 indicates Negative momentum. The RSI at 46.73 is Neutral, neither overbought nor oversold. The STOCH value of 37.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INCY.

Incyte Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GMAB	81 Outperform	$13.02B	11.54	23.16%	―	30.43%	82.29%
EXEL	80 Outperform	$10.16B	20.80	23.13%	―	18.49%	176.71%
UTHR	78 Outperform	$13.31B	11.77	19.94%	―	19.85%	21.16%
BMRN	77 Outperform	$11.44B	22.13	9.64%	―	17.99%	152.10%
INCY	75 Outperform	$11.54B	184.44	0.47%	―	17.13%	-88.78%
ASND	52 Neutral	$9.83B	―	357.68%	―	10.69%	34.71%
Sector *	52 Neutral	$5.23B	3.70	-41.86%	2.84%	16.58%	-0.16%

Incyte Corporate Events

Incyte Announces Retirement of Executive VP Barry Flannelly

Incyte Corporation announced that Barry P. Flannelly, Executive Vice President and General Manager, North America, has retired from his role as of January 6, 2025. He will continue with the company until July 31, 2025, to aid in the transition of his responsibilities, ensuring a smooth handover to his successor.