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Incyte Corp (INCY)
NASDAQ:INCY

Incyte (INCY) AI Stock Analysis

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Incyte

(NASDAQ:INCY)

75Outperform
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 (INCY) vs. S&P 500 (SPY)

Incyte Business Overview & Revenue Model

Company DescriptionIncyte Corporation is a biopharmaceutical company based in the United States, primarily focused on the discovery, development, and commercialization of proprietary therapeutics. The company's core products include treatments for oncology and inflammation, with a strong emphasis on developing small-molecule drugs and biologics that address unmet medical needs. Incyte is known for its expertise in medicinal chemistry and its robust pipeline of candidates that target various diseases.
How the Company Makes MoneyIncyte 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
75
Positive
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
85
Very Positive
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
80
Positive
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
4.24B3.70B3.39B2.99B2.67B
Gross Profit
3.93B3.44B3.19B2.84B2.54B
EBIT
61.37M620.52M579.44M585.78M-240.29M
EBITDA
408.16M919.43M599.64M630.20M-178.24M
Net Income Common Stockholders
32.62M597.60M340.66M948.58M-295.70M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.16B3.66B3.24B2.35B1.80B
Total Assets
5.44B6.78B5.84B4.93B3.56B
Total Debt
43.54M38.29M44.64M34.27M34.86M
Net Debt
-1.64B-3.18B-2.91B-2.02B-1.48B
Total Liabilities
2.00B1.59B1.47B1.16B949.65M
Stockholders Equity
3.45B5.19B4.37B3.77B2.61B
Cash FlowFree Cash Flow
249.07M449.00M892.11M568.48M-311.98M
Operating Cash Flow
335.34M496.49M969.94M749.49M-124.60M
Investing Cash Flow
157.52M-207.68M-78.54M-207.70M-269.00M
Financing Cash Flow
-2.02B-20.03M-794.00K6.18M71.71M

Incyte Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price62.53
Price Trends
50DMA
63.46
Negative
100DMA
67.41
Negative
200DMA
67.61
Negative
Market Momentum
MACD
-0.29
Negative
RSI
56.84
Neutral
STOCH
92.95
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INCY, the sentiment is Neutral. The current price of 62.53 is above the 20-day moving average (MA) of 58.99, below the 50-day MA of 63.46, and below the 200-day MA of 67.61, indicating a neutral trend. The MACD of -0.29 indicates Negative momentum. The RSI at 56.84 is Neutral, neither overbought nor oversold. The STOCH value of 92.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for INCY.

Incyte Risk Analysis

Incyte disclosed 39 risk factors in its most recent earnings report. Incyte reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Incyte Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
84
Outperform
$13.23B12.1423.16%30.43%82.29%
80
Outperform
$10.91B22.3423.13%18.49%176.71%
77
Outperform
$11.89B28.209.64%17.35%151.40%
75
Outperform
$13.29B11.7619.94%19.85%21.16%
75
Outperform
$12.10B193.470.47%17.13%-88.78%
52
Neutral
$10.30B357.68%36.09%22.96%
52
Neutral
$5.35B3.96-42.60%2.86%17.58%1.27%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
INCY
Incyte
62.53
8.45
15.63%
BMRN
BioMarin Pharmaceutical
62.03
-20.07
-24.45%
EXEL
Exelixis
39.60
17.70
80.82%
UTHR
United Therapeutics
294.60
34.09
13.09%
ASND
Ascendis Pharma
172.06
38.06
28.40%
GMAB
Genmab
21.48
-7.55
-26.01%

Incyte Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q1-2025)
|
% Change Since: 5.06%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong financial performance with significant revenue growth, successful product launches, and positive R&D progress. While there are potential challenges related to inventory management and competitive pressures, the overall sentiment remains optimistic due to the company's robust cash position and strategic planning.
Q1-2025 Updates
Positive Updates
Strong Financial Performance
Q1 2025 saw a 26% growth in product revenue and a 20% increase in total revenues year over year, reaching $1.05 billion.
Successful Product Launches
Nikkynvo and Nick Timbo launched successfully, contributing $14 million in net product revenues in Q1 2025.
Jakafi Revenue Growth
Jakafi net product revenue grew 24% year over year to $709 million, with total patients increasing by 10%.
Opselura Growth
Opselura's Q1 net product revenue was $119 million, up 38% from the same quarter last year, driven by growth in the US and European markets.
Positive R&D Progress
Significant progress with positive data readouts in pivotal studies for HS and proof of concept in CSU.
Strong Cash Position
The company's cash position at the end of Q1 2025 was $2.4 billion.
Negative Updates
Inventory and Channel Challenges
Opselura faced a reduction in channel inventory, affecting net revenue growth.
Tariff Considerations
Potential impact of tariffs on pharmaceuticals, although mitigated by dual sourcing and inventory management.
Competition Concerns
Emerging competition with new treatment options in the market, including a phase three data announcement of a hepcid mimetic in PV.
Company Guidance
In the first quarter of 2025, Incyte Corporation reported a robust financial performance with total revenues increasing by 20% year-over-year to $1.05 billion, driven by a 26% growth in product revenues. The company's cash position at the end of the quarter reached $2.4 billion. Jakafi's net product revenue grew 24% year-over-year to $709 million, with a 10% increase in total patients, prompting an upward revision of its full-year net product revenue guidance to $2.95-$3 billion. Opselura's net product revenue rose 38% to $119 million, supported by strong growth in the U.S. and European markets. The successful launch of Niktibo contributed $14 million in net product sales, highlighting significant early demand. The company is on track for a pivotal year with plans for three additional product launches and multiple pivotal trial readouts. Additionally, Incyte's strategic dual sourcing initiative is expected to minimize the impact of potential tariffs on pharmaceuticals.

Incyte Corporate Events

Executive/Board Changes
Incyte Announces Retirement of Executive VP Barry Flannelly
Neutral
Jan 10, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.