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Incyte Owner Earnings per Share (TTM)

: 1.68 (As of Jun. 2022)
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In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Incyte's Owner Earnings per Share (TTM) ended in Jun. 2022 was $1.68. It's Price-to-Owner-Earnings ratio for today is 39.51.


The historical rank and industry rank for Incyte's Owner Earnings per Share (TTM) or its related term are showing as below:

INCY' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 32.4   Med: 53.83   Max: 3774.33
Current: 40.23


During the past 13 years, the highest Price-to-Owner-Earnings ratio of Incyte was 3774.33. The lowest was 32.40. And the median was 53.83.


INCY's Price-to-Owner-Earnings is ranked worse than
57.31% of 171 companies
in the Biotechnology industry
Industry Median: 30.78 vs INCY: 40.23

Incyte's Earnings per Share (Diluted) for the three months ended in Jun. 2022 was $0.72. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2022 was $4.25. It's PE Ratio ratio for today is 15.62.

Incyte's EPS without NRI for the three months ended in Jun. 2022 was $0.72. Its EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2022 was $4.25. It's PE Ratio without NRI ratio for today is 15.62.


Incyte Owner Earnings per Share (TTM) Historical Data

The historical data trend for Incyte's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Incyte Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Owner Earnings per Share (TTM)
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.76 0.28 2.26 -1.84 1.96

Incyte Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Owner Earnings per Share (TTM) Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.66 1.94 1.96 1.93 1.68

Competitive Comparison

For the Biotechnology subindustry, Incyte's Owner Earnings per Share (TTM), along with its competitors' market caps and Owner Earnings per Share (TTM) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Incyte Owner Earnings per Share (TTM) Distribution

For the Biotechnology industry and Healthcare sector, Incyte's Owner Earnings per Share (TTM) distribution charts can be found below:

* The bar in red indicates where Incyte's Owner Earnings per Share (TTM) falls into.



Incyte Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Incyte's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 945
Depreciation, Depletion and Amortization 62
Change In Deferred Tax -433
5Y Average of Maintenance Capital Expenditure 88
Change In Working Capital -111
Shares Outstanding (Diluted Average) 224

1. Start with "Net Income" from income statement. Incyte's Net Income for the trailing twelve months (TTM) ended in Jun. 2022 was $945 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Incyte's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Jun. 2022 was $62 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Incyte's Change In Deferred Tax for the trailing twelve months (TTM) ended in Jun. 2022 was $-433 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $88 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Incyte's 5-Year Average Maintenance Capital Expenditure = $88 Mil

5. "Change In Working Capital" is from cashflow statement. Incyte's Change In Working Capital for the trailing twelve months (TTM) ended in Jun. 2022 was $-111 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Incyte's Shares Outstanding (Diluted Average) for the months ended in Jun. 2022 was 223.661 Mil.

Incyte's Onwer Earnings Per Share for Jun. 2022 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 945.014 +62.494+-432.969
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-87.551414170168+-111.003)/223.661
=1.68

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=66.38/1.68
=39.51

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Incyte Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of Incyte's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Incyte Business Description

Incyte logo
Industry
Address
1801 Augustine Cut-Off, Wilmington, DE, USA, 19803
Incyte focuses on the discovery and development of small-molecule drugs. The firm's lead drug, Jakafi, treats two types of rare blood cancer and graft versus host disease and is partnered with Novartis. Incyte's other marketed drugs include rheumatoid arthritis treatment Olumiant (licensed to Lilly), and oncology drugs Iclusig (chronic myeloid leukemia), Pemazyre (cholangiocarcinoma), Tabrecta (lung cancer), and Monjuvi (diffuse large B-cell lymphoma). The firm's first dermatology product, Opzelura, was approved in 2021 for atopic dermatitis. Incyte's pipeline includes a broad array of oncology and dermatology programs.
Executives
Tray Thomas officer: Principal Accounting Officer C/O INCYTE CORPORATION 1801 AUGUSTINE CUT-OFF WILMINGTON DE 19803
Brawley Otis W director 5203 BRISTOL INDUSTRIAL WAY BUFORD GA 30518
High Katherine A director 3737 MARKET STREET SUITE 1300 PHILADELPHIA PA 19104
Harrigan Edmund director
Morrissey Michael James officer: EVP, Head of Tech. Operations IN CARE OF INCYTE CORPORATION 1801 AUGUSTINE CUT OFF WILMINGTON DE 19803
Dickinson Jonathan Elliott officer: EVP, General Manager, Europe CARE OF INCYTE CORPORATION 1801 AUGUSTINE CUT OFF WILMINGTON DE 19803
Stamoulis Christiana officer: EVP & Chief Financial Officer C/O VERTEX PHARMACEUTICALS INCORPORATED 130 WAVERLY ST CAMBRIDGE MA 02139
Dhanak Dashyant officer: EVP & Chief Scientific Officer C/O INCYTE CORPORATION 1801 AUGUSTINE CUT-OFF WILMINGTON DE 19803
Pasquale Maria E officer: EVP & General Counsel C/O INCYTE CORPORATION 1801 AUGUSTINE CUT-OFF WILMINGTON DE 19803
Fouse Jacqualyn A director C/O DICK'S SPORTING GOODS 345 COURT STREET CORAOPOLIS PA 15108
Iyengar Vijay K officer: EVP GPS, BD, & Licensing 1801 AUGUSTINE CUT-OFF WILMINGTON DE 19803
Stein Steven H officer: EVP & Chief Medical Officer 1801 AUGUSTINE CUT-OFF WILMINGTON DE 19803
Trower Paul officer: VP, Finance & Prin Acc Officer 1801 AUGUSTINE CUT-OFF WILMINGTON DE 19803
Clancy Paul J director C/O BIOGEN IDEC INC. 14 CAMBRIDGE CENTER CAMBRIDGE MA 02142
Bienaime Jean Jacques director 925 PAGE MILL ROAD PALO ALTO CA 94304

Incyte Headlines

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