Incyte (INCY) AI Stock Analysis

• Market Cap: $14.76B
• Dividend Yield: N/A
• Average Volume (3M): 1.69M
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.51
• Revenue Growth: 18.87%
• EPS Growth: 1088.27%
• Country: US
• Employees: 2,617
• Sector: Healthcare
• Sector Strength: 38
• Industry: Biotechnology
• EPS (TTM): 1.57
• Shares Outstanding: 195,276,140
• 10 Day Avg. Volume: 1,963,200
• 30 Day Avg. Volume: 1,691,135
• PEG Ratio: 27.12
• Price to Book (P/B): 3.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 49.89
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 4.70
• Enterprise Value/Gross Profit: 24.39
• Enterprise Value/Ebitda: 53.37
• 1Y Price Target: $82.06
• Price Target Upside: 8.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 75 Outperform
• Price Target: $87.00 ▲(15.09%Upside)

Incyte's overall stock score reflects a solid financial foundation with strong revenue growth and cash flow, supported by positive earnings call sentiment. The stock's technical indicators show upward momentum but caution due to overbought conditions. Valuation is moderate without a dividend yield, and recent corporate events present mixed impacts on future financial performance.

Positive Factors

Financial Performance

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

Product Launch

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

Negative Factors

Pipeline Development

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

Revenue Challenges

Opzelura revenue is challenged by lower tube usage, which could impact growth expectations.

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 through a combination of product sales, collaboration agreements, and royalties. The primary source of revenue is the sale of Jakafi, which is marketed in the United States. Incyte also generates revenue through strategic partnerships and licensing agreements with other pharmaceutical companies, such as Novartis, which markets Jakavi (the international brand name for ruxolitinib) outside the U.S. Additionally, the company earns royalties based on the sales of licensed products. These partnerships and licensing deals are crucial, as they provide both milestone payments and ongoing income streams, supplementing the revenue from direct product sales.

Incyte Financial Statement Overview

Summary

Incyte presents a solid financial position characterized by consistent revenue growth and strong cash flow generation. The balance sheet is robust with low leverage, but profitability margins are low, indicating room for improvement in operational efficiency.

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
EBITDA	408.16M	919.43M	599.64M	630.20M	-178.24M
Net Income	32.62M	597.60M	340.66M	948.58M	-295.70M
Balance Sheet
Total Assets	5.44B	6.78B	5.84B	4.93B	3.56B
Cash, Cash Equivalents and Short-Term Investments	2.16B	3.66B	3.24B	2.35B	1.80B
Total Debt	60.34M	38.29M	44.64M	34.27M	34.86M
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: Positive
• Last Price: 75.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 75.59 is above the 20-day moving average (MA) of 70.50, above the 50-day MA of 68.80, and above the 200-day MA of 68.44, indicating a bullish trend. The MACD of 1.96 indicates Negative momentum. The RSI at 63.88 is Neutral, neither overbought nor oversold. The STOCH value of 76.18 is Neutral, 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
BMRN	78 Outperform	$11.15B	21.57	9.64%	―	17.99%	152.10%
UTHR	77 Outperform	$13.31B	11.49	19.30%	―	17.62%	19.89%
INCY	75 Outperform	$14.76B	17.18	24.30%	―	18.87%	1088.27%
EXEL	73 Outperform	$10.03B	17.87	29.00%	―	10.73%	81.66%
GMAB	72 Outperform	$13.25B	12.23	22.69%	―	25.11%	46.46%
Sector *	51 Neutral	$7.35B	0.50	-65.61%	2.47%	15.28%	1.44%
ASND	43 Neutral	$10.53B	―	357.68%	―	10.69%	34.71%

Incyte Corporate Events

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.

The most recent analyst rating on (INCY) stock is a Hold with a $59.00 price target. To see the full list of analyst forecasts on Incyte stock, see the INCY Stock Forecast page.

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.

The most recent analyst rating on (INCY) stock is a Hold with a $59.00 price target. To see the full list of analyst forecasts on Incyte stock, see the INCY Stock Forecast page.

Incyte Settles Royalty Dispute with Novartis

On May 11, 2025, Incyte Corporation and Novartis Pharma AG reached a settlement agreement concerning a litigation over royalty payments related to JAKAFI sales in the United States. Incyte agreed to pay Novartis $280 million for disputed royalties and to reduce future royalty rates by 50% starting January 1, 2025, impacting the company’s financial statements for the quarter ending June 30, 2025.

The most recent analyst rating on (INCY) stock is a Hold with a $59.00 price target. To see the full list of analyst forecasts on Incyte stock, see the INCY Stock Forecast page.