Buffett Brain · Research note
Score updated 23 Oct 2026 · analysis from 6 Oct 2026
INCY· Healthcare
Incyte
Incyte's 92% gross margins and 20% ROIC suggest a strong moat, but biotech's inherent risks require caution.
Buffett fit
Partial fit
Owner
65
Durability
66
Management
93
Price
74
Score updated 23 Oct 2026 · analysis from 6 Oct 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Healthcare stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning 100% of Incyte would mean relying on its strong current portfolio and future pipeline for growth.
The full reasoning comes with a free account.
Incyte's durability hinges on its ability to maintain and expand its drug portfolio.
The full reasoning comes with a free account.
Incyte has effectively managed its capital, evidenced by a share count CAGR of -2.99% and a yield of 2.02%.
The full reasoning comes with a free account.
With a of 14 and an yield of 6.76%, Incyte's valuation appears reasonable compared to Buffett's preferred entry of 8-10% yield.
The full reasoning comes with a free account.
Free account
Read the full Incyte analysis free
- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
- Graham, Lynch and Greenblatt on the same stock
3 full analyses a week · no card needed
For and against
The strongest points on each side, with the numbers behind them.
In its favor
7- 191.9% , indicating strong .
- 220% , top-quintile in the healthcare sector.
- 3Net debt/EBITDA of -1.83, indicating a net cash position.
- 4Interest coverage of 615.9, showing strong financial health.
Concerns
5- 1EPS max decline of 94% in the past 5 years, highlighting volatility.
- 2Biotech sector's inherent regulatory and development risks.
- 3Pipeline dependence for future growth, with potential for setbacks.
- 4No dividend yield, limiting immediate shareholder returns.
Price history
$117+74.6%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Incyte Corporation generates revenue primarily from its proprietary therapeutics, including JAKAFI and PEMAZYRE. The company reported $5.14 billion in TTM revenue with a net margin of 26.7%. Its business model relies heavily on successful drug development and commercialization. With a of 91.9%, the unit economics are favorable, reflecting strong .
How this analysis has moved
The call has held across 3 reviews.
Oct 11, 2026 → Oct 23, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Healthcare
Free weekly email
Liked the read on INCY? Get the next ones on Monday.
Every Monday: the stocks most of the seven investors newly agree on. One email, unsubscribe any time.
Research, not investment advice.
See the Buffett analysis of Incyte
The score, the checklist and the full reasoning open with a free account. You get 3 full analyses a week, and this stock is the first one. No card needed.
Create a free account3 full analyses a week · no card needed
Already have an account? Sign in