Buy or Sell Incyte Stock Today?
Incyte (Nasdaq: INCY) is a large cap company that operates within the pharmaceutical industry. Its market cap is $26 billion today and the total one-year return is 62.09% for shareholders.
Incyte stock is beating the market, but does that make it a good buy today? To answer this question we've turned to the Investment U Stock Grader. Our research team built this system to diagnose the financial health of a company.
Our system looks at six key metrics...
Earnings-per-Share (EPS) Growth: Incyte reported a recent EPS growth rate of -83.33%. That's below the pharmaceutical industry average of 59.63%. That's not a good sign. We like to see companies that have higher earnings growth.
Price-to-Earnings (P/E): The average price-to-earnings ratio of the pharma industry is 98.63. And Incyte’s ratio comes in at 207.06. Its valuation looks expensive compared to many of its competitors.
Debt-to-Equity : The debt-to-equity ratio for Incyte stock is 155.31. That's above the pharma industry average of 50.34. The company may be over-leveraged.
Free Cash Flow per Share Growth : Incyte’s FCF has been lower than its competitors over the last year. That's not good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth. It's one of our most important fundamental factors.
Profit Margins : The profit margin of Incyte comes in at 2.72% today. And generally, the higher, the better. We also like to see this margin above that of its competitors. Incyte’s profit margin is above the pharma average of -32516.37%. So that's a positive indicator for investors.
Return on Equity : Return on equity gives us a look at the amount of net income returned to shareholders. The ROE for Incyte stock is 35.29%, and that's above its industry average ROE of -11.11%.
Incyte stock passes two of our six key metrics today. That's why our Investment U Stock Grader rates it as a hold with caution.
Please note that our fundamental factor checklist is just the first step in performing your own due diligence. There are many other factors you should consider before investing. That's why The Oxford Club offers more than a dozen newsletters and trading advisories all aimed at helping investors grow and maintain their wealth. For more details, click here.
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