INCY

On a snapshot basis Incyte looks like a high-quality compounder trading at a discount: FY2025 revenue grew 21.2% to $5.14B, operating margin hit 29.5%, net margin 25.0%, and ROE was 24.9% — all funded by a fortress balance sheet ($3.10B cash, liabilities/equity just 0.35x, essentially net cash). At $113.75 that is only 17.7x diluted EPS of $6.41 and 4.4x sales; back out the cash and the EV multiple is lower still. For a profitable, growing biopharma those are not demanding numbers.

The eye-popping +3845% net-income jump is largely optical and must be read against the filing, not taken at face value. FY2024 was crushed by a one-time $783.8M 'Other R&D' charge (IPR&D acquisition / milestone costs), which is why reported R&D 'fell' 21.4% and EPS exploded off a depressed base; FY2025 also benefited from a $242.3M contract-dispute settlement booked as a cost offset. Normalizing for those items, the underlying business grew solidly but not 40x — the earnings power is real but the growth rate is the ~20% revenue line, not the headline EPS.