Incyte (INCY) AI Stock Analysis

• Market Cap: $16.69B
• Dividend Yield: N/A
• Average Volume (3M): 1.75M
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.55
• Revenue Growth: 18.87%
• EPS Growth: 1088.27%
• Country: US
• Employees: 2,617
• Sector: Healthcare
• Sector Strength: 48
• Industry: Biotechnology
• EPS (TTM): 1.57
• Shares Outstanding: 195,276,140
• 10 Day Avg. Volume: 1,860,179
• 30 Day Avg. Volume: 1,748,985
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.67
• Enterprise Value/Revenue: 2.43
• Enterprise Value/Gross Profit: 2.62
• Enterprise Value/Ebitda: 8.23
• 1Y Price Target: $83.17
• Price Target Upside: -2.20% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 80 Outperform
• Price Target: $100.00 ▲(17.59% Upside)

Incyte's strong financial performance, highlighted by robust profitability and improving cash flows, is the most significant factor driving the stock score. The bullish technical indicators and strategic product launches further support a positive outlook. However, challenges such as increased R&D expenses and regulatory delays temper the overall score.

Positive Factors

Earnings

INCY reported strong results with beats for Jakafi, Opzelura, and Niktimvo leading to total revenues that were 6% above consensus.

Product Performance

The early Niktimvo launch showed significant strength, leading to increased sales estimates for 2025 and 2030.

Revenue Growth

Strong growth for assets like Niktimvo starts to make analysts more confident in the asset's commercial potential.

Negative Factors

Cash Flow

Incyte's modest cash positioning could be growth-limiting for transactions.

Pipeline Delays

Pipeline delays, including the JAK2V617Fi data delay, give pause to the company's longer-term outlook.

Revenue Dependency

Jakafi's late loss of exclusivity in 2028 poses a significant challenge, as it constitutes approximately 65% of total revenues.

Incyte Business Overview & Revenue Model

Company Description

Incyte Corporation (INCY) is a biopharmaceutical company focused on discovering, developing, and commercializing innovative medicines to treat serious diseases, primarily cancer and other hematologic disorders. The company operates in the oncology sector with a strong emphasis on targeted therapies and has a portfolio that includes both approved drugs and a pipeline of investigational products. Key products include Jakafi (ruxolitinib), a treatment for certain types of blood cancers, and other therapeutic candidates aimed at various malignancies and immunological conditions.

How the Company Makes Money

Incyte generates revenue primarily through the sale of its approved products, notably Jakafi, which is utilized for the treatment of conditions such as myelofibrosis and polycythemia vera. The company also earns revenue through collaborations and partnerships with other pharmaceutical companies, which may include upfront payments, milestone payments upon achieving specific development goals, and royalties on sales of partnered products. Additionally, Incyte invests in research and development to expand its product offerings, aiming to bring new therapies to market that can further enhance its revenue streams.

Incyte Financial Statement Overview

Summary

Incyte demonstrates 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. However, profitability margins are a potential area for improvement, as net profit remains low relative to revenue.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.58B	4.24B	3.70B	3.39B	2.99B	2.67B
Gross Profit	4.26B	3.93B	3.44B	3.19B	1.34B	2.54B
EBITDA	1.36B	408.16M	919.43M	599.64M	630.20M	-178.24M
Net Income	870.87M	32.62M	597.60M	340.66M	948.58M	-295.70M
Balance Sheet
Total Assets	5.82B	5.44B	6.78B	5.84B	4.93B	3.56B
Cash, Cash Equivalents and Short-Term Investments	2.42B	2.16B	3.66B	3.24B	2.35B	1.80B
Total Debt	42.41M	60.34M	38.29M	55.57M	60.43M	61.72M
Total Liabilities	1.65B	2.00B	1.59B	1.47B	1.16B	949.65M
Stockholders Equity	4.17B	3.45B	5.19B	4.37B	3.77B	2.61B
Cash Flow
Free Cash Flow	945.58M	249.07M	449.00M	892.11M	568.48M	-311.98M
Operating Cash Flow	1.00B	335.34M	496.49M	969.94M	749.49M	-124.60M
Investing Cash Flow	-966.00K	157.52M	-207.68M	-78.54M	-207.70M	-269.00M
Financing Cash Flow	-35.88M	-2.02B	-20.03M	-794.00K	6.18M	71.71M

Incyte Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 85.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INCY, the sentiment is Positive. The current price of 85.04 is above the 20-day moving average (MA) of 80.67, above the 50-day MA of 73.56, and above the 200-day MA of 69.53, indicating a bullish trend. The MACD of 4.01 indicates Negative momentum. The RSI at 68.22 is Neutral, neither overbought nor oversold. The STOCH value of 84.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INCY.

Incyte Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GMAB	82 Outperform	$14.54B	11.92	26.08%	―	23.25%	64.46%
INCY	80 Outperform	$16.69B	19.60	24.30%	―	18.87%	1088.27%
UTHR	78 Outperform	$14.17B	11.97	19.30%	―	17.62%	19.89%
BMRN	78 Outperform	$11.00B	17.17	11.62%	―	17.38%	153.58%
EXEL	73 Outperform	$10.10B	18.16	29.00%	―	10.73%	81.66%
ASND	61 Neutral	$11.79B	―	357.68%	―	55.77%	46.81%
Sector *	46 Neutral	C$217.46M	-0.36	-24.12%	3.15%	19.33%	-0.50%

Incyte Corporate Events

Incyte CFO Christiana Stamoulis to Step Down

On August 4, 2025, Incyte Corporation announced that Christiana Stamoulis, the Executive Vice President and Chief Financial Officer, will step down from her role on September 16, 2025, to pursue another opportunity. The company is in the process of appointing a successor and Ms. Stamoulis will remain with the company until her departure to ensure a smooth transition.

Incyte Announces New CEO William J. Meury

On June 26, 2025, Incyte Corporation announced the retirement of Hervé Hoppenot as President and CEO, with Julian C. Baker becoming Chairman of the Board. Hervé Hoppenot will remain as a Board member and serve as a special advisor during the CEO transition, receiving compensation and equity awards as part of a transition agreement. William J. Meury has been appointed as the new President and CEO, bringing extensive experience from previous roles in the biopharmaceutical industry. His compensation package includes a base salary, bonus opportunities, and equity awards, reflecting Incyte’s strategic focus on leadership continuity and growth.

Incyte Stockholders Approve Key Amendments at Annual Meeting

At the Annual Meeting of Stockholders held on June 10, 2025, Incyte Corporation’s stockholders approved amendments to the company’s 2010 Stock Incentive Plan and 1997 Employee Stock Purchase Plan. The amendments included increasing the number of shares available under both plans and extending the termination date of the Stock Incentive Plan by five years. Additionally, the election of directors, approval of executive compensation, and the appointment of Ernst & Young LLP as the independent auditor for 2025 were ratified. These decisions are likely to impact Incyte’s operational flexibility and shareholder engagement, potentially enhancing its competitive positioning in the biopharmaceutical sector.