Incyte Corporation (INCY) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Incyte Corporation

Updated on October 31, 2026 · accounts published on October 29, 2026

A growing, cash-generating biotech with an almost debt-free balance sheet

Incyte trades at 6.6× its fiscal 2025 cash, above the 1.5× to 3× range seen as reasonable for biotech, while revenue grew 21 % over the last 12 months.

• Is Incyte expensive or cheap? At 6.6× its fiscal 2025 cash, Incyte sits well above the 1.5× to 3× range considered reasonable for biotech.
• How is the business doing? Revenue grew 21 % over the last 12 months, but ROIC topped 10 % in only 4 of the last 10 fiscal years.
• How strong is the balance sheet? Incyte held net cash of $17.97 per share in fiscal 2025, about 15 % of the current share price.
• What to expect from the next earnings? The 2026 EPS consensus fell 22 % in 30 days, from $3.82 to $2.98. Next results are due February 9, 2027.
• How many months of cash does Incyte have left? Incyte does not burn cash: it generated $7.24 per share of operating cash flow in fiscal 2025.

Is Incyte expensive or cheap?

Incyte trades at 4.3× book value over the last 12 months and at 6.6× its fiscal 2025 cash. That is more than double the top of the 1.5× to 3× band usually seen as reasonable for a biotech. The stock has risen 30 % over the last 12 months. It sits 7 % below its 52-week high of $129.93 and far above the $90.30 low. Net cash covers about 15 % of the current price (fiscal 2025). Most of the valuation therefore rests on the profits the operating business can keep producing, and only a small part on the cash on hand.

How is the business doing?

Revenue rose 21 % over the last 12 months. That is a strong pace for a company that already produces positive operating cash flow. Returns have been less consistent. ROIC beat 10 % in only 4 of the ten fiscal years from 2016 to 2025, and the worst year, 2017, came in at −13 %. Fiscal 2025 R&D spending equals 8.7 % of the current market value. That is just short of the 10 % level at which a biotech is treated as reinvesting heavily. The growth is there. The record shows that turning it into steady high returns has been the harder part.

How strong is the balance sheet?

The balance sheet is the strongest part of the picture. In fiscal 2025 Incyte held $18.34 of cash per share against only $0.37 of debt, which left $17.97 of net cash. That equals about 15 % of today's share price. Over the last 12 months the current ratio stands at 3.8, so short-term assets cover short-term liabilities almost four times. The Altman Z-score of 8.4 sits in the safe zone. With debt-to-equity close to zero, creditors have almost no claim on future cash flows, which leaves the company free to fund itself.

What to expect from the next earnings?

On October 29, 2026, Incyte reported a loss of $3.60 per share. Analysts had expected a loss of $3.93, so the result extends a record of beating EPS estimates in 6 of the last 8 quarters. Even so, the 15 analysts covering 2026 EPS have cut their estimate by 22 % in the last 30 days, to $2.98 from $3.82. Revenue forecasts have barely moved, so analysts are cutting expected profits while sales expectations stay put. For the quarter to be reported on February 9, 2027, analysts expect EPS of $1.89. Of 44 analysts, 23 rate the stock a buy, 20 a hold and 1 a sell.

How many months of cash does Incyte have left?

For most small biotechs this is the key question. Many of them lose money, so a P/E says little and investors look at cash, debt and research spending instead. Incyte passes the survival test easily. It generated $7.24 of operating cash flow per share in fiscal 2025, so it is not running down its cash. Its debt equals 0.0× its cash, well inside the 1× level considered manageable. The two sector checks it fails are about price and reinvestment: its market value is 6.6× its cash, above the 1.5× to 3× range, and R&D equals 8.7 % of its market value, below the 10 % threshold.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.