Incyte Corp Profitability Analysis

INCY -  USA Stock  

USD 64.97  1.58  2.37%

For Incyte Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Incyte Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Incyte Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Incyte Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Incyte Corp over time as well as its relative position and ranking within its peers. Please see Risk vs Return Analysis.

Incyte Current Profitability Trends 

 
Refresh
Incyte Corp Price to Sales Ratio is fairly stable at the moment as compared to the past year. Incyte Corp reported Price to Sales Ratio of 7.11 in 2020. Sales per Share is likely to rise to 13.19 in 2021, whereas Return on Sales is likely to drop (0.09)  in 2021. Income Tax Expense is likely to rise to about 68.5 M in 2021, whereas Accumulated Other Comprehensive Income is likely to drop (15.8 M) in 2021.

Incyte Corp Revenues

2.88 BillionShare
Is Incyte Corp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Incyte Corp. If investors know Incyte will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Incyte Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Incyte Corp is measured differently than its book value, which is the value of Incyte that is recorded on the company's balance sheet. Investors also form their own opinion of Incyte Corp's value that differs from its market value or its book value, called intrinsic value, which is Incyte Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Incyte Corp's market value can be influenced by many factors that don't directly affect Incyte Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Incyte Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Incyte Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Incyte Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Incyte Corp Cash Flow from Operations vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Incyte Corp's current stock value. Our valuation model uses many indicators to compare Incyte Corp value to that of its competitors to determine the firm's financial worth.
Incyte Corp is currently regarded as number one stock in operating margin category among related companies. It is currently regarded as number one stock in cash flow from operations category among related companies making about  48,504,122  of Cash Flow from Operations per Operating Margin. Incyte Corp Operating Margin is fairly stable at the moment as compared to the past year. Incyte Corp reported Operating Margin of -8.28 in 2020. Comparative valuation analysis is a catch-all model that can be used if you cannot value Incyte Corp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Incyte Corp's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Incyte Corp's earnings, one of the primary drivers of an investment's value.

Incyte Cash Flow from Operations vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Incyte Corp 
Operating Margin 
 = 
Operating Income 
Revenue 
X
100 
15.77 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Operating Cash Flow reveals the quality of a company's reported earnings and is calculated by deducting company's income taxes from earnings before interest, taxes, and depreciation (EBITDA). In other words, Operating Cash Flow refers to the amount of cash a firm generates from the sales or products or from rendering services. Operating Cash Flow typically excludes costs associated with long-term investments or investment in marketable securities and is usually used by investors or analysts to check on the quality of a company's earnings.
Incyte Corp 
Operating Cash Flow 
 = 
EBITDA 
-  
Taxes 
764.91 M
Operating Cash Flow shows the difference between reported income and actual cash flows of the company. If a firm does not have enough cash or cash equivalents to cover its current liabilities, then both investors and management should be concerned about the company having enough liquid resources to meet current and long term debt obligations.

Incyte Cash Flow from Operations Comparison

Incyte Corp is currently under evaluation in cash flow from operations category among related companies.

Incyte Corp Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Incyte Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Incyte Corp will eventually generate negative long term returns. The profitability progress is the general direction of Incyte Corp's change in net profit over the period of time. It can combine multiple indicators of Incyte Corp, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2021
Accumulated Other Comprehensive Income-15.4 M-15.8 M
Consolidated Income-295.7 M-303.5 M
Net Income-295.7 M-303.5 M
Net Income Common Stock-295.7 M-303.5 M
Operating Income-240.3 M-246.6 M
Income Tax Expense63.5 M68.5 M
Net Income Per Employee-166.3 K-170.7 K
Incyte Corporation, a biopharmaceutical company, focuses on the discovery, development, and commercialization of proprietary therapeutics in the United States and internationally. The company was incorporated in 1991 and is headquartered in Wilmington, Delaware. Incyte Corp operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 1773 people.

Incyte Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Incyte Corp. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Incyte Corp position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Incyte Corp's important profitability drivers and their relationship over time.

Incyte Corp Profitability Trends

Incyte Corp profitability trend refers to the progression of profit or loss within a business. An upward trend means that Incyte Corp's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Incyte Corp's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Incyte Corp Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Incyte Corp different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Incyte Corp in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Incyte Corp's future profitability.

Use Incyte Corp in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Incyte Corp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Incyte Corp will appreciate offsetting losses from the drop in the long position's value.

Incyte Corp Pair Trading

Incyte Corp Pair Trading Analysis

Correlation analysis and pair trading evaluation for Incyte Corp and Brickell Biotech. Pair trading can be used as a hedging technique within a particular sector or industry or even over random equities to generate better risk-adjusted return
Run Pair Correlation  

Use Investing Themes to Complement your Incyte Corp position

In addition to having Incyte Corp in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Stores Thematic Idea Now

Stores
Stores Theme
Companies providing different types of retail and wholesale services. Stores theme has 30 constituents.
View All  Next Launch Stores
Please see Risk vs Return Analysis. Note that the Incyte Corp information on this page should be used as a complementary analysis to other Incyte Corp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

Complementary Tools for Incyte Stock analysis

When running Incyte Corp price analysis, check to measure Incyte Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Incyte Corp is operating at the current time. Most of Incyte Corp's value examination focuses on studying past and present price action to predict the probability of Incyte Corp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Incyte Corp's price. Additionally, you may evaluate how the addition of Incyte Corp to your portfolios can decrease your overall portfolio volatility.
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
To fully project Incyte Corp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Incyte Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Incyte Corp's income statement, its balance sheet, and the statement of cash flows.
Potential Incyte Corp investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Incyte Corp investors may work on each financial statement separately, they are all related. The changes in Incyte Corp's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Incyte Corp's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.