Incyte (INCY) AI Stock Analysis

• Market Cap: $13.79B
• Dividend Yield: N/A
• Average Volume (3M): 1.90M
• Price to Earnings (P/E): 212.9
• Beta (1Y): 0.57
• 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: 2,304,291
• 30 Day Avg. Volume: 1,896,987
• PEG Ratio: -0.81
• Price to Book (P/B): 4.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.99
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 0.90
• Enterprise Value/Gross Profit: 3.66
• Enterprise Value/Ebitda: 12.78
• 1Y Price Target: $75.00
• Price Target Upside: 9.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 74 Outperform
• Price Target: $77.00 ▲(11.90%Upside)

Incyte's strong financial performance and positive earnings call drive the overall score. The stock's high valuation and potential overbought technical indicators are concerns, but strategic initiatives and a robust cash position provide resilience against competitive and operational challenges.

Positive Factors

Clinical Trials

INCA33989 showed high overall response rates and molecular responses with relative normalization of platelets.

Market Potential

The market opportunity for mutCALR could be significant and has the potential to offset lost Jakafi sales in the future.

Partnerships

Incyte announced a new collaboration with QIAGEN to develop a novel diagnostic panel to support the company’s developmental drugs for patients with myeloproliferative neoplasms.

Negative Factors

Investor Sentiment

Investors have been lukewarm on the pipeline and the overhang from Jakafi's nearing patent expiry persists.

Product Revenue

Opzelura revenue will be challenged by lower tube usage, and Jakafi growth continues to slow despite indication expansion.

Product Uptake

KOL thinks ‘989’s Q2W dosing could be a limitation to uptake.

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 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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.41B	4.24B	3.70B	3.39B	2.99B	2.67B
	Gross Profit
4.07B	3.93B	3.44B	3.19B	2.84B	2.54B
	EBIT
175.53M	61.37M	620.52M	579.44M	585.78M	-240.29M
	EBITDA
406.83M	408.16M	919.43M	599.64M	630.20M	-178.24M
	Net Income Common Stockholders
21.27M	32.62M	597.60M	340.66M	948.58M	-295.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.54B	2.16B	3.66B	3.24B	2.35B	1.80B
	Total Assets
5.05B	5.44B	6.78B	5.84B	4.93B	3.56B
	Total Debt
46.88M	43.54M	38.29M	44.64M	34.27M	34.86M
	Net Debt
-2.21B	-1.64B	-3.18B	-2.91B	-2.02B	-1.48B
	Total Liabilities
1.19B	2.00B	1.59B	1.47B	1.16B	949.65M
	Stockholders Equity
3.86B	3.45B	5.19B	4.37B	3.77B	2.61B
Cash Flow		Free Cash Flow
288.81M	249.07M	449.00M	892.11M	568.48M	-311.98M
	Operating Cash Flow
382.59M	335.34M	496.49M	969.94M	749.49M	-124.60M
	Investing Cash Flow
231.73M	157.52M	-207.68M	-78.54M	-207.70M	-269.00M
	Financing Cash Flow
-2.02B	-2.02B	-20.03M	-794.00K	6.18M	71.71M

Incyte Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 68.81
• 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 68.81 is above the 20-day moving average (MA) of 67.09, above the 50-day MA of 62.68, and above the 200-day MA of 67.73, indicating a bullish trend. The MACD of 1.90 indicates Negative momentum. The RSI at 58.43 is Neutral, neither overbought nor oversold. The STOCH value of 63.76 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
EXEL	84 Outperform	$11.39B	18.94	30.22%	―	24.49%	244.87%
GMAB	82 Outperform	$14.04B	12.83	22.69%	―	25.11%	46.46%
UTHR	76 Outperform	$13.02B	11.52	19.94%	―	19.85%	21.16%
INCY	74 Outperform	$13.79B	212.90	0.47%	―	17.13%	-88.78%
BMRN	71 Outperform	$10.79B	20.87	9.64%	―	17.99%	152.10%
Sector *	54 Neutral	$5.34B	3.36	-45.10%	3.39%	16.81%	-0.03%
ASND	52 Neutral	$10.73B	―	357.68%	―	10.69%	34.71%

Incyte Corporate Events

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.