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Incyte Corp INCY

Morningstar Rating
$58.84 −1.15 (1.92%)
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Company Report

Incyte Earnings: Maintaining Our $88 Fair Value Estimate Following Strong Fourth-Quarter Results

Incyte’s product and royalty revenue grew 13% in the fourth quarter, with hematology drug Jakafi (sales up 7% in the U.S.) and dermatology drug Opzelura (78% growth) standing out as the biggest drivers of growth. These results and 2024 guidance are both relatively in line with our expectations, and we’re maintaining our $88 per share fair value estimate. We see shares as undervalued, with the market failing to recognize the potential in Incyte’s pipeline. Incyte ended the year with $3.7 billion in cash, which it could also use to supplement its portfolio with bolt-on acquisitions as the Jakafi patent expiration in 2028 starts to enter the radar of investors. We think the firm’s Jakafi franchise, as well as new launches like Opzelura, secure Incyte a narrow moat.

Price vs Fair Value

INCY is trading at a 32% discount.
Price
$59.98
Fair Value
$64.00
Uncertainty
Medium
1-Star Price
$874.60
5-Star Price
$19.10
Economic Moat
Sqykr
Capital Allocation
Tjvsklsp

Bulls Say, Bears Say

Bulls

Incyte's Jakafi is the first FDA-approved treatment for a rare blood disorder known as myelofibrosis, giving it strong pricing power and market penetration.

Bears

Several competing myelofibrosis therapies are entering the market and could eventually upend Incyte's monopoly on the myelofibrosis market.

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News

Trading Information

Previous Close Price
$59.99
Day Range
$58.6560.12
52-Week Range
$50.4278.02
Bid/Ask
$58.83 / $58.87
Market Cap
$13.22 Bil
Volume/Avg
385,369 / 1.9 Mil

Key Statistics

Price/Earnings (Normalized)
17.03
Price/Sales
3.67
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Incyte focuses on the discovery and development of small-molecule drugs. The firm's lead drug, Jakafi, treats two types of rare blood cancer and graft versus host disease and is partnered with Novartis. Incyte's other marketed drugs include rheumatoid arthritis treatment Olumiant (licensed to Lilly), and oncology drugs Iclusig (chronic myeloid leukemia), Pemazyre (cholangiocarcinoma), Tabrecta (lung cancer), and Monjuvi (diffuse large B-cell lymphoma). The firm's first dermatology product, Opzelura, was approved in 2021 for atopic dermatitis and 2022 for vitiligo. Incyte's pipeline includes a broad array of oncology and dermatology programs.
Sector
Healthcare
Industry
Biotechnology
Stock Style Box
Mid Growth
Total Number of Employees
2,524

Competitors

Valuation

Metric
INCY
ABBV
RHHBY
Price/Earnings (Normalized)
17.0316.0212.09
Price/Book Value
2.5930.346.02
Price/Sales
3.675.813.15
Price/Cash Flow
18.1915.7611.59
Price/Earnings
INCY
ABBV
RHHBY

Financial Strength

Metric
INCY
ABBV
RHHBY
Quick Ratio
3.550.630.99
Current Ratio
3.750.871.35
Interest Coverage
260.453.5714.93
Quick Ratio
INCY
ABBV
RHHBY

Profitability

Metric
INCY
ABBV
RHHBY
Return on Assets (Normalized)
12.82%14.54%17.03%
Return on Equity (Normalized)
16.79%150.11%53.42%
Return on Invested Capital (Normalized)
14.10%28.30%26.30%
Return on Assets
INCY
ABBV
RHHBY
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