Incyte Corp (INCY) stock analysis
Incyte Corp (INCY) clears 5 of this site's 8 mechanical value filters, 7 of 8 Buffett-style checks and 3 of 5 Lynch-style checks. At $116.93 it trades 28.9% below this site's neutral DCF value (a margin of safety of +28.9%). Its earnings quality rates Strong and it returns −1.1% to shareholders net of dilution. Figures are as of October 23, 2026, from SEC filings and market data refreshed weekly; this is educational analysis, not investment advice.
Data as of October 23, 2026. Refreshed weekly from SEC filings and market data.
What does Incyte do?
Incyte develops and sells prescription drugs, mainly for cancer and immune diseases, with Jakafi as its best-known product.
Brands and businesses it owns
- Jakafi
- Opzelura
- Monjuvi
What stands out about Incyte?
- The share price implies shrinking cash flow. At $116.93, INCY's free cash flow of $9.63 per share would have to shrink 0.4% a year at first, then recover to 2.5% growth by year 10, for this site's DCF (10% discount rate) to match the price. This site's baseline starts at 8% growth, so the price asks for less growth than the baseline. Change the assumptions.
- Misses 1 of the 8 value filters. It fails Market Cap > $25B ($23.3B); the other 5 pass and 2 were not evaluated. See every filter.
- Short interest is elevated. 5.0% of the float is sold short, 6.1 days to cover, above this site's 5% flag. See the figures.
- Owners are being diluted. Its net shareholder yield is −1.1%: more stock is issued than is bought back or paid out. See Shareholder Yield Leaders.
- Clears all 4 compounder lenses. It grows profit on little capital, reports real earnings, returns cash to owners and is not priced for perfection on this site's tests. See Compounders at a Fair Price.
How has Incyte's share price moved?
The interactive price chart needs JavaScript.
Is Incyte undervalued? The value diligence check
Every value-investing signal this site computes for this stock, gathered in one place: the same real numbers from the tools below, not a new score.
- Margin of safety (DCF) +28.9%
- P/E vs. its own history 14.5x · at/below its cheapest point Real range: 15.4x–440.6x over 5 years (net income per diluted share from each fiscal year's 10-K, paired with the real closing price at that fiscal year-end).
- Wall St. analyst rating Buy · 3.74/5 35 analysts this month: 8 strong buy, 10 buy, 17 hold, 0 sell, 0 strong sell (Finnhub).
- Altman Z″-Score (bankruptcy risk) 7.90 · Safe zone
- Earnings quality (is the profit real?) Strong · all 5 checks clean Beneish M-score −2.42 · accruals −2.0% of assets · 117% of profit arrived as cash · stock comp 4.8% of revenue · share count −5.7% a year. From the latest 10-K (year to Dec 2025) - see the Earnings Quality Screener for how each check is scored.
- Shareholder yield (cash back to owners) −1.1% net Latest fiscal year (2025): dividends 0.0% + buybacks 0.0% − stock comp 1.1%, as a share of today's market cap. Stock comp outruns what comes back in cash. Over 14 years its split-adjusted share count rose 60%. See Shareholder Yield Leaders.
- Capital needed to grow (See's test) $0.56 per $1 of new profit · See's-like Operating profit $10M → $732M, capital needed $527M → $930M, 2016–2025 (3-year averages); return on capital now 79% before tax. Buffett's See's Candies needed $0.42 per $1 of new profit, FlightSafety $3.20, a typical grower about $5. See Capital-Light Compounders.
- PEG (growth at a reasonable price) 1.09 · About fair P/E 14.5× ÷ 13.2% a year of growth behind it. 106th lowest of 447 stocks with a usable PEG. Lynch's fair value is a PEG of 1; a very high PEG usually means almost no growth, a very low one a profit spike. See PEG Ratio Ranking.
- Compounder lenses (4) 4 of 4 Capital-light growth: cleared; Profit is real: cleared; Cash to owners: cleared; Fair price (PEG): cleared. See Compounders at a Fair Price, which also lets you move the PEG bar.
- Value trap check Clear
- Munger's Inversion Check 2 flags
- Standing vs. sector peers 6 of 6 measures above the median Compared with the 14 other pharma & biotech stocks this site tracks: 5 in the top third, 0 in the bottom third.
How does Incyte compare with its peers?
6 of 6 measures sit above the median of the 14 other pharma & biotech stocks tracked here, 5 in the top third.
- P/E ratiolower is cheaper · peer median 35.0× 14.5× ✓3rd of 12
- Free-cash-flow yieldhigher is cheaper · peer median 4.5% 8.2% ✓3rd of 15
- Return on equityhigher is better · peer median 23% 30% –6th of 15
- Net marginhigher is better · peer median 16.2% 27.7% ✓4th of 15
- Revenue growthhigher is better, year on year · peer median 5.5% 26.9% ✓2nd of 15
- Debt / equitylower is safer · peer median 0.94 0.01 ✓2nd of 15
Peers are the stocks this site tracks in the same sector group, not every listed competitor. The bar runs from the weakest peer (left) to the strongest (right); the tick is the middle. Measures that don't apply to a sector (cash-flow yield for banks, debt for financials) are left out.
What would Buffett & Lynch say?
Buffett's checklist is built around durable, profitable businesses bought at sensible prices, and INCY clears it. In its favor: INCY is currently earning a strong return on shareholders' equity, and has kept that profitability up over five years, not just this year, carries a conservative amount of debt relative to equity, converts sales into profit at healthy margins, earns many times its interest expense, so debt service isn't a worry, is trading below what a conservative discounted-cash-flow estimate says it's worth - his own "price is what you pay, value is what you get" test, not a fixed multiple ceiling, and trades at a reasonable multiple of owner earnings, his own term for the real cash a business could pay out. Where it comes up short: INCY hasn't grown earnings per share fast enough over five years to impress him.
- ROE (TTM) > 11% ✓
- ROE (5yr avg) > 11% ✓
- Debt/Equity < 0.5 ✓
- Pretax margin > 15% ✓
- EPS growth (5yr) > 7% ✕
- Interest coverage > 5x ✓
- Trading below intrinsic value (DCF) ✓
- Price vs. owner earnings < 25x ✓
Lynch looked for growth stories that weren't overpriced for that growth, and INCY falls short of his bar. In its favor: INCY isn't leaning on debt to fund that growth, isn't asking too much even by a fast grower's usual richer multiple, and is generating real cash to back up a fast grower's higher price tag. Where it comes up short: INCY doesn't clear the tighter PEG bar a fast grower needs to justify its pace, and is growing earnings outside the 20-50% band he considered sustainable for a fast grower - either not fast enough to earn the label, or a pace he'd flag as unlikely to hold up.
- PEG < 1 (stricter for fast growers) ✕
- EPS growth 20%-50% ✕
- Debt/Equity < 0.5 ✓
- P/E < 40 ✓
- Price/FCF < 40 ✓
Quantitative approximations of each investor's documented approach, not endorsed by either investor or their estates - commentary, not this site's actual ranking criteria. Buffett never published a numeric checklist: only 2 of his 8 checks here trace to his own documented concepts ("owner earnings," from his 1986 shareholder letter, and "price is what you pay, value is what you get," his case against fixed P/E/P/B ceilings) - the other 6 (ROE, debt, margins, growth, interest coverage) use commonly-cited thresholds that are not numbers he himself published. The 8 hard filters below (plus the Munger check and Graham margin of safety) are this site's real, mechanical screen and are computed completely independently of the checklists above.
Berkshire Hathaway's own filing
Which of the 8 value filters does Incyte pass?
- Market Cap > $25B $23.3B
- Trailing P/E < 25 14.46
- PEG Ratio < 1.5 1.09
- Price/Book < 8 3.68
- Price/Sales < 7 4.01
- EPS Growth YoY > -5% +38.0%
- vs 50-day MA (±12%) Not evaluated †
- vs 200-day MA (±12%) Not evaluated †
What is Incyte's margin of safety?
History tracking starts this week - check back in a future week to see how this has moved.
Where is Incyte in its 52-week range?
What is the short interest in Incyte?
9,987,084 shares short as of 2026-09-30 (FINRA settlement date). Reported twice a month, so this only changes roughly every two weeks, not daily.
What could go wrong with Incyte? Munger's inversion check
"Invert, always invert." Instead of reasons to buy, these are reasons to hesitate, not a verdict, and not everything worth knowing about a business.
- Margin of safety, even in the bull case +58%
- Short interest under 5% of float 5.0%
- Passes most of the 6 fundamental filters 5/6 passed
- Price run-up backed by value, not just momentum +39% off 52wk low
- Debt/equity stable since 2016 1.79 → 9.91
Doesn't cover circle of competence, management quality, or accounting concerns: those need judgment, not data.
How much have Incyte shareholders gained per year?
Not enough clean earnings history to compute this for INCY yet - a loss year in the window breaks the growth math rather than faking a number through it.
An earnings-based proxy, not a stock-price total return - it doesn't capture multiple expansion/contraction or reinvested dividends. EPS from INCY's own 10-K filings; dividend yield is the current trailing yield on today's price, from the same weekly fetch as the rest of this site.
What do Incyte's 10-year financials show?
From INCY's own 10-K filings (SEC EDGAR): up to the last 10 fiscal years. Press any year's bars for the exact figures.
Frequently asked questions about Incyte
What kind of company is Incyte?
Incyte develops and sells prescription drugs, mainly for cancer and immune diseases, with Jakafi as its best-known product. Brands and businesses it owns include Jakafi, Opzelura and Monjuvi. This site groups it with Biotechnology stocks.
Is Incyte trading above or below its DCF value?
At $116.93, INCY trades 28.9% below this site's neutral DCF value of $164.42 per share, a margin of safety of +28.9%. That DCF projects free cash flow for 10 years, with growth starting at 8% and fading to 2.5%, discounted at 10%; it is one set of assumptions, not a forecast. Test your own in the Intrinsic Value Calculator.
How many of this site's 8 value filters does Incyte pass?
INCY passes 5 of 8. It passes Trailing P/E < 25 (14.46), PEG Ratio < 1.5 (1.09), Price/Book < 8 (3.68), Price/Sales < 7 (4.01) and EPS Growth YoY > -5% (+38.0%). It misses Market Cap > $25B ($23.3B). vs 50-day MA (±12%) and vs 200-day MA (±12%) were not evaluated, because the moving-average checks only run on stocks that clear the fundamentals first. The 8-filter list shows every stock that passes all of them.
How fast has Incyte grown its revenue and profit?
From fiscal 2016 to fiscal 2025, INCY's revenue grew from $1.1 billion to $5.1 billion, 18.6% a year. Net income went from $104 million to $1.3 billion, and its net profit margin from 9.4% to 25.0%. Earnings per share went from $0.54 to $6.41 on today's share count, 31.6% a year. All figures are from INCY's own 10-K filings (SEC EDGAR) and are shown year by year in the 10-Year Financials section of the card above.
When does Incyte report earnings next?
Incyte's next earnings report is expected on October 29, 2026 before the market opens, with analysts expecting earnings of $-3.96 per share. Dates come from the Finnhub earnings calendar and can move. In its last 4 quarters it beat the estimate 3 times, by an average of +24.7%.
How heavily is Incyte stock sold short?
As of September 30, 2026, 5.0% of INCY's float was sold short (9,987,084 shares, 6.1 days to cover), up 0.1% from the prior reporting period. FINRA publishes short interest twice a month, so it changes about every two weeks; this site flags anything above 5% of the float.
Where do these numbers come from?
- Financial statements: Incyte's 10-K annual report for the year ended Dec 31, 2025, filed Feb 10, 2026 (filing index). Every earlier year in the 10-year financials comes from the company's older 10-K filings, all listed on SEC EDGAR.
- Prices and market data: quotes, P/E and analyst ratings from Finnhub; daily price history and the 52-week range from Twelve Data, both refreshed weekly. Short interest comes from FINRA, reported twice a month.
- How to check a figure: click any number in the card above to see its exact source, and read the Editorial Standards for every rule behind the checks.
About this Incyte Corp analysis
This page shows every value-investing check the site runs on Incyte Corp (INCY) in one place: the 8 mechanical filters, the Buffett and Lynch checklists, a margin of safety from a disclosed DCF, earnings quality, shareholder yield and how it ranks against its sector peers. The numbers come from SEC filings and public market data, refreshed weekly, and the same rules apply to every stock on the stock list. See Editorial Standards for the sources and the rules, or run your own filters in the stock screener.