Share count
201Mpeak FY2023
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INCY, Incyte
Incyte is a global biopharmaceutical company engaged in the discovery, development and commercialization of proprietary therapeutics.
Our hematology franchise includes four approved products, JAKAFI (ruxolitinib), ICLUSIG (ponatinib), MONJUVI (tafasitamab-cxix)/MINJUVI (tafasitamab) and NIKTIMVO (axatilimab-csfr), as well as multiple clinical development programs.
Approved Products JAKAFI (ruxolitinib) JAKAFI (ruxolitinib) was approved by the U.S.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
$5.1B
+21.2% YoY · 14% 5-yr CAGR
Vital signs · TTM, with 5-yr average
Revenue $5.4B 5-yr avg $3.9B
Revenue $1.3B +20.9% vs yr-ago qtr
Operating margin 23.7% yr-ago 19.5%
Net income $303M yr-ago $158M
Net margin 23.8% yr-ago 15.0%
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- Situation
- Cyclical. Margins collapse and recover repeatedly across the record; a single year, good or bad, misstates the through-cycle earning power.
- What moves the needle
- Gross margin has run about 95% and operating margin about 13% through the cycle, a wide spread between price and the cost of what it sells — whether that advantage is durable pricing power or a margin that can erode is the question the record is for. The operating margin has swung widely — from −16% to 29% — on a steadier 95% gross margin, so what moves it sits below the gross line, in operating spend and one-off charges more than in the cost of the product itself. The cash cycle has run negative through the cycle (a median of −218 days): the operation is paid before it pays, so working capital releases cash as the business grows rather than tying it up. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Return on capital has run high across the record (median 24%, above 15% in 6 of 10 years), though buybacks and expensed R&D and brands shrink the capital base, so the figure overstates the underlying economics. The steadier read is owner earnings: roughly 22% of revenue reaches owners as cash, though it swings, and customers and suppliers fund the business through negative working capital. Whether these returns reflect real pricing power or an accounting artifact is the judgment the 10-K is for.
Every line is arithmetic on the company's filings, shown in full in the sections below.
The record
Ten years of arithmetic, read across the cycle.
The record, 2016–2025
realized figures from each filing · older years to the left| 2016’16 | 2017’17 | 2018’18 | 2019’19 | 2020’20 | 2021’21 | 2022’22 | 2023’23 | 2024’24 | 2025’25 | TTMTTMMar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | |||||||||||
| $1.1B | $1.5B | $1.9B | $2.2B | $2.7B | $3.0B | $3.4B | $3.7B | $4.2B | $5.1B | $5.4B | RevenueRevenue |
| 95% | 95% | 95% | 95% | 95% | 95% | 94% | 93% | 93% | 93% | 92% | Gross marginGross mgn |
| 27% | 24% | 23% | 22% | 19% | 25% | 30% | 31% | 29% | 27% | 26% | SG&A / revenueSG&A/rev |
| 53% | 86% | 64% | 53% | 83% | 49% | 47% | 44% | 61% | 40% | 40% | R&D / revenueR&D/rev |
| $145M | ($243M) | $129M | $402M | ($264M) | $586M | $579M | $621M | $61M | $1.5B | $1.6B | Operating incomeOp. inc. |
| 13.1% | −15.8% | 6.9% | 18.6% | −9.9% | 19.6% | 17.1% | 16.8% | 1.4% | 29.5% | 30.0% | Operating marginOp. mgn |
| $104M | ($313M) | $109M | $447M | ($296M) | $949M | $341M | $598M | $33M | $1.3B | $1.4B | Net incomeNet inc. |
| 3% | — | 5% | 8% | — | — | 36% | 28% | — | 23% | 19% | Effective tax rateTax rate |
| Cash flow & returns | |||||||||||
| $305M | ($93M) | $336M | $711M | ($125M) | $749M | $970M | $496M | $335M | $1.4B | $1.5B | Operating cash flowOp. cash |
| $58M | $52M | $55M | $55M | $52M | $58M | $68M | $83M | $89M | $93M | $95M | DepreciationDeprec. |
| $46M | $35M | $24M | $43M | ($59M) | ($440M) | $373M | ($400M) | ($53M) | ($216M) | ($262M) | Working capital & otherWC & other |
| $120M | $111M | $73M | $78M | $187M | $181M | $78M | — | — | — | $78M | CapexCapex |
| 10.9% | 7.2% | 3.9% | 3.6% | 7.0% | 6.1% | 2.3% | — | — | — | 1.5% | Capex / revenueCapex/rev |
| $246M | ($145M) | $281M | $656M | ($176M) | $692M | $892M | — | — | — | $1.4B | Owner earningsOwner earn. |
| 22.3% | −9.4% | 14.9% | 30.4% | −6.6% | 23.2% | 26.3% | — | — | — | 26.8% | Owner earnings marginOE mgn |
| $184M | ($204M) | $263M | $633M | ($312M) | $568M | $892M | — | — | — | $1.4B | Free cash flowFCF |
| 16.7% | −13.3% | 14.0% | 29.3% | −11.7% | 19.0% | 26.3% | — | — | — | 26.8% | Free cash flow marginFCF mgn |
| — | — | — | — | — | — | $0 | $0 | $2.0B | $0 | — | BuybacksBuybacks |
| 27% | -25% | 1% | 48% | -19% | 34% | 26% | 22% | 2% | 57% | 6% | ROICROIC |
| 25% | -19% | 6% | 17% | -11% | 25% | 8% | 12% | 1% | 25% | 25% | Return on equityROE |
| 25% | −19% | 6% | 17% | −11% | 25% | 8% | 12% | 1% | 25% | 25% | Retained to equityRetained/eq |
| Balance sheet | |||||||||||
| $809M | $1.2B | $1.4B | $2.1B | $1.5B | $2.1B | $3.0B | $3.2B | $1.7B | $3.1B | $3.7B | Cash & investmentsCash+inv |
| $149M | $266M | $308M | $309M | $482M | $616M | $645M | $744M | $853M | $1.0B | $1.1B | ReceivablesReceiv. |
| $4M | $6M | $7M | $11M | $16M | $28M | $42M | $63M | $59M | $101M | $116M | InventoryInvent. |
| $76M | $68M | $104M | $84M | $99M | $172M | $278M | $110M | $197M | $210M | $229M | Accounts payablePayables |
| $77M | $205M | $211M | $237M | $400M | $472M | $409M | $697M | $715M | $916M | $938M | Operating working capitalOper. WC |
| $994M | $1.5B | $1.8B | $2.5B | $2.4B | $3.1B | $4.1B | $4.6B | $3.2B | $5.0B | $5.5B | Current assetsCur. assets |
| $274M | $375M | $425M | $513M | $631M | $854M | $1.2B | $1.2B | $1.6B | $1.5B | $1.5B | Current liabilitiesCur. liab. |
| 3.6× | 4.0× | 4.3× | 4.8× | 3.7× | 3.7× | 3.5× | 3.7× | 2.0× | 3.3× | 3.7× | Current ratioCurr. ratio |
| $156M | $156M | $156M | $156M | $156M | $156M | $156M | $156M | $156M | $133M | $133M | GoodwillGoodwill |
| $1.6B | $2.3B | $2.6B | $3.4B | $3.6B | $4.9B | $5.8B | $6.8B | $5.4B | $7.0B | $7.3B | Total assetsAssets |
| $750M | $27M | $19.1B | — | — | — | — | — | — | — | $19.8B | Total debtDebt |
| ($59M) | ($1.1B) | $17.7B | — | — | — | — | — | — | — | $16.0B | Net debt / (cash)Net debt |
| 3.7× | -35.3× | 83.7× | 216.7× | -121.3× | 307.0× | 217.3× | 243.2× | 26.9× | 623.9× | 689.3× | Interest coverageInt. cov. |
| $419M | $1.6B | $1.9B | $2.6B | $2.6B | $3.8B | $4.4B | $5.2B | $3.4B | $5.2B | $5.6B | Shareholders’ equityEquity |
| 8.7% | 8.7% | 7.9% | 7.7% | 6.7% | 6.1% | 5.6% | 5.8% | 6.3% | 4.8% | 4.7% | Stock comp / revenueSBC/rev |
| Per share | |||||||||||
| 194M | 205M | 216M | 218M | 218M | 222M | 224M | 226M | 211M | 201M | 207M | Shares out (diluted)Shares |
| $5.70 | $7.51 | $8.73 | $9.92 | $12.23 | $13.45 | $15.16 | $16.36 | $20.15 | $25.62 | $25.92 | Revenue / shareRev/sh |
| $0.54 | $-1.53 | $0.51 | $2.05 | $-1.36 | $4.27 | $1.52 | $2.65 | $0.15 | $6.41 | $6.92 | EPS (diluted)EPS |
| $1.27 | $-0.71 | $1.30 | $3.01 | $-0.81 | $3.11 | $3.98 | — | — | — | $6.96 | Owner earnings / shareOE/sh |
| $0.95 | $-1.00 | $1.22 | $2.91 | $-1.43 | $2.56 | $3.98 | — | — | — | $6.96 | Free cash flow / shareFCF/sh |
| $0.62 | $0.54 | $0.34 | $0.36 | $0.86 | $0.82 | $0.35 | — | — | — | $0.38 | Cap. spending / shareCapex/sh |
| $2.16 | $7.97 | $8.93 | $11.94 | $11.97 | $16.98 | $19.51 | $22.97 | $16.38 | $25.75 | $27.19 | Book value / shareBVPS |
Per-share growththe realized rate an owner's share compounded
| 9-yr | 5-yr | |
|---|---|---|
| Revenue / share | +18.2%/yr | +15.9%/yr |
| Owner earnings / share | +21.0%/yr (6-yr) | — |
| EPS | +31.7%/yr | — |
| Capital spending / share | −9.2%/yr (6-yr) | −8.5%/yr |
| Book value / share | +31.7%/yr | +16.5%/yr |
The record, charted
FY2016–2025Each measure over its full record; the current point and the worst year marked.
ROIC
57%low FY2017
Gross margin
93%low FY2024
Owner earnings vs. net income
Owner earningsNet incomeThe accountant's number, and the cash an owner can take; the gap is the tell.
$892Mowner earningsvs.$341Mnet incomelow FY2020
Where the cash went
ReinvestBuybacksDividendsAcquisitionsRetainedEach year's operating cash, by what management did with it: the mix, and how it drifts.
FY2016FY2025
Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.
In fiscal 2022 the business turned $341M of profit into $892M of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.
| FY2022 | FY2021 | FY2020 | FY2019 | FY2018 | |
|---|---|---|---|---|---|
| Reported net income | $341M | $949M | ($296M) | $447M | $109M |
| Depreciation & amortizationnon-cash charge added back | +$68M | +$58M | +$52M | +$55M | +$55M |
| Stock-based compensationreal costnon-cash, but a real cost | +$188M | +$183M | +$178M | +$167M | +$148M |
| Working capital & othertiming of cash in and out, other non-cash items | +$373M | −$440M | −$59M | +$43M | +$24M |
| Cash from operations | $970M | $749M | ($125M) | $711M | $336M |
| Maintenance capital expenditurethe spending needed just to hold position and volume | −$78M | −$58M | −$52M | −$55M | −$55M |
| Owner earnings | $892M | $692M | ($176M) | $656M | $281M |
| Growth capital expenditurediscretionary; spent to get bigger, not to stand still | — | −$123M | −$136M | −$24M | −$19M |
| Free cash flow | $892M | $568M | ($312M) | $633M | $263M |
| Owner-earnings marginowner earnings ÷ revenue | 26% | 23% | -7% | 30% | 15% |
Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $188M), owner earnings is nearer $704M.
Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 10-K · source on SEC EDGAR →
Will it survive?
- Can it pay its interest? 623.9×ComfortableOperating income $1.5B ÷ interest expense $2M
What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
- How heavy is the debt, net of cash? $16.4B · 10.8× operating profitHeavy net debtCash $3.1B + ST investments $285M − debt $19.8B
What this means
Netting $3.4B of cash and short-term investments against $19.8B of debt leaves $16.4B owed, about 10.8× a year's operating profit (13.1× on the gross debt, before the cash). Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
- Negative, funded by othersDSO 73 + DIO 99 − DPO 206 days
What this means
Days cash is tied up between paying suppliers and collecting from customers. A negative cycle is a quiet moat: suppliers and customers fund the operation (Buffett's “float”), the company grows on other people's money.
Is it a good business?
- High through the cycle10-yr median, range -25%–57%; 5% latest = NOPAT $1.2B ÷ invested capital $21.9BIndustry peers: median 14%
What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran 5% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
- High through the cycle7-yr median margin, range -9%–30%; latest $1.3B = operating cash $1.4B − maintenance capex $78MIndustry peers: median 7%
What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 26% of revenue this year, a 22% median across 7 years. Treating stock comp as the real expense it is (less $249M of SBC) leaves $1.1B.
- Cash-backedCash from ops $1.4B ÷ net income $1.3B
What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.
How is the cash used?
- Reinvests most of itDividends + buybacks $0 ÷ Owner Earnings $1.3B
What this means
Of $1.3B Owner Earnings, $0 (0%) went back to shareholders, $0 dividends, $0 buybacks. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
- Investing or harvesting? 0.83×MaintainingCapex $78M ÷ depreciation $93M
What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.
Graham’s defensive tests · 2 of 5 met
Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.
- Adequate size PassRevenue ≥ $2B · $5.1B
What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
- Strong liquidity PassCurrent ratio ≥ 2× · 3.32×
What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
- Conservative debt MissDebt ≤ working capital · $19.8B vs $3.5B WC
What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
- Earnings stability MissA profit every year (10-yr record) · 2 loss years
What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
- Dividend record MissUninterrupted dividends · none paid
What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
- Earnings growth —Earnings +33% over the record · —
What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
- Moderate price —P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price
What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $3.20/share (latest year $6.44), the averaged base the calculator's gate runs on, and book value is $25.87/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.
Durability & moat, 2016–2025
Whether the record’s returns held, and what the capital reinvested earned.
- Profitable years 8 of 10
What this means
Lost money in 2 year(s), look at what happened there before trusting the average.
- Return on capital ≥ 15% 1 of 3 yrs
What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
- Operating margin 1% → 16% (3-yr avg ends)
In the filing’s words The record and the words agree: the margin widened and the filing attributes the gain to its own pricing, not volume alone.
What this means
Through the cycle the operating margin widened — about 1% early to 16% lately, median 13% — pricing power intact or improving.
- Reinvestment, incremental ROIC returns capital
What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
- Owner earnings growth +58%/yr
What this means
Owner earnings grew about 58% a year over the record.
- Worst year 2017 · −15.8% op. margin
What this means
Operations went underwater in 2017, understand why before trusting the good years.
- Share count +0.4%/yr
What this means
Roughly flat share count, little dilution, little buyback.
Does AI threaten the moat?
Moderate contestabilityAI is likely to reshape costs and some products here without clearly contesting or sparing the core moat; how the company itself frames it is the tell.
In its own filing Named as a competitive risk
Its FY2025 10-K names artificial intelligence as a competitive threat.
“If the analyses that artificial intelligence applications assist in producing are deficient or inaccurate, we could be subjected to competitive harm, potential legal liability, and brand or reputational harm.”
The question is whether a moat the record shows as durable outlasts a technology that lowers the cost of part of what the firm sells. The durability is read in the record above, the filing's own framing of AI beside it; the industry label decides nothing on its own.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Current Position
as of the latest quarter, Mar 31, 2026Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
Current assets$5.5B
- Cash & short-term investments$3.7B
- Receivables$1.1B
- Inventory$116M
- Other current assets$571M
Current liabilities$1.5B
- Debt due within a year$689M
- Accounts payable$229M
- Other current liabilities$572M
Current ratio3.68×all current assets ÷ what's due · Graham looked for 2×
Quick ratio3.60×stricter: inventory excluded
Cash ratio2.51×strictest: cash alone against what's due
Working capital$4.0Bthe cushion left after near-term bills
Debt due this year vs. cash$689M due · $3.7B cash
covered by cash on hand, no refinancing forced · both figures from the Mar 31, 2026 balance sheet
Revenue, latest quarter vs. a year ago+20.9%the freshest read on whether the business is still growing
Current ratio, recent quarters1.9× → 3.7×
Deeper floors
Tangible book value$5.3Bequity stripped of goodwill & intangibles
Net current asset value$3.8BGraham's net-net: current assets less all liabilities
Debt incl. operating leases$19.8B$20M of it operating leases
Deferred revenue$80Mcustomer cash collected before delivery; operating float
From the company's latest filing.
How the cash was used, 2016–2022
Over the record, the business generated $2.9B of operating cash; how management split it reads as a cash builder, a large share of cash simply built up on the balance sheet.
- Reinvested$829M · 29%
- Retained (debt / cash)$2.0B · 71%
- Source of fundingOperating cash
Operating cash covered reinvestment and returns; over the span debt rose $19.0B and cash and short-term investments rose $2.9B.
- Net change in share count6.5%
The diluted count rose from 194M to 207M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
- Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.
- Return on what it retained25%
Of the earnings it kept rather than paid out ($1.3B over the span), annual owner earnings (first three years vs last three) grew $342M, so each retained $1 added about 0.25 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.
Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.
Management, ownership & pay
read the proxy →From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.
| Fiscal year | Pay, as filed | “Actually paid” | Net income |
|---|---|---|---|
| 2021 | $14.4M | $6.2M | $949M |
| 2022 | $16.7M | $16.0M | $341M |
| 2023 | $16.7M | $7.8M | $598M |
| 2024 | $17.5M | $25.2M | $33M |
| 2025 | $6.4M | $23.4M | $1.3B |
| 2025 | $32.1M | $54.7M | $1.3B |
Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Net income is the whole business's, as filed, for the same fiscal years.
- Insider ownership16.2%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
- Stock-based compensation$249M
The slice of the business handed to employees in shares this year, 5% of revenue, equal to 16% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.
Inverting the record
Invert: instead of why Incyte is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.
3 of the 6 tests turned up something to look into; the other 3 came back clean.
- Look hereDid the share count rise anyway?6.5%
Diluted shares grew 6.5% over 2016–2022. Owners were diluted on net; each share owns less of the business than it did. Read the buyback line beside this one, not on its own.
- Look hereDid debt outgrow the business?$750M → $19.8B
Debt rose from $750M to $19.8B while owner earnings went from about $127M to $469M — about 5.9 years of owner earnings in debt then, about 42 now: measured against what the business earns, the balance sheet carries more debt than it did. Debt raised for buybacks or deals rather than growth is the kind that bites in a downturn.
- Look hereDid receivables and inventory outpace sales?14% → 22% of sales
Receivables and inventory grew from $153M to $1.2B while revenue grew 385%: working capital is climbing faster than sales (14% of revenue then, 22% now). That can mean customers paying slower, stock building up, or revenue pulled forward. The filing's cash-flow and receivables notes say which.
And these came back clean
- Is it less profitable than it was?
- Did reported profit become cash?
- Are "one-time" charges a yearly habit?
Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.
Peers, Life Sciences Tools & Services
The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | Gross margin | Op. margin | ROIC | Owner earn. margin |
|---|---|---|---|---|---|
| BAHBooz Allen Hamilton Holding Corporation | $11.2B | 54% | 9.0% | 21% | 6% |
| ITGartner Inc. | $6.5B | 67% | 14.1% | 40% | 18% |
| TTEKTetra Tech | $5.4B | 83% | 7.7% | 14% | 7% |
| PAYXPaychex Inc. | $5.4B | 70% | 39.7% | 41% | 32% |
| INCYIncyte | $5.1B | 95% | 15.0% | 24% | 22% |
| ASTHAstrana Health Inc. | $3.2B | 23% | 9.5% | 11% | 5% |
| HURNHuron Consulting | $1.7B | 37% | 7.6% | 6% | 11% |
| VSECVSE Corporation | $1.1B | 74% | 7.6% | 6% | 1% |
| Group median | — | 69% | 9.2% | 17% | 9% |
The price
What a price has to assume.
What the price implies
reverse-DCFType today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Incyte has delivered.
$
Through the cycle, Incyte earns about $1.2B on its 22.7% median owner-earnings margin. This year’s 26.0% margin runs in line with that. Normalize, below, values the price on that through-cycle figure rather than the latest year.
Base
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The assumptions
9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.
Enter a price above to run it.
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Implied by the price—
Owner-earnings growth · ’18→’22+14%/yr
Owner-earnings growth · since FY2021+57%/yr
Owner-earnings growth · ’16→’22+58%/yr
Owner-earnings yield—
What a growth belief costs, in multiples
The growth each return requires, at your price
P/E (3-yr earnings ’23–’25)—
P/B—
Graham’s price gate—
Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.
Against a high-grade bond: Graham’s yardstick bond yield%
Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.
Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.
Owner-earnings yield—
High-grade bond yield—
Margin over the bond—
Owner earnings $1.4B on 200M shares outstanding, per the 10-Q cover, as of 2026-04-21; net debt $16.0B. The if-converted diluted count is 207M, 4% above the shares outstanding: the dilution overhang (convertibles, options) a buyer inherits. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.
Cite: Owner Scorecard, "Incyte (INCY), the owner's record," https://ownerscorecard.com/c/INCY, data as of 2026-07-09.
Manual order: ← INBX its page in the Manual INDB →
Industry order: ← ILMN the Life Sciences Tools & Services chapter IQV →