NASDAQ:EXEL is showing good growth, while it is not too expensive.

Last update: Dec 21, 2023

EXELIXIS INC (NASDAQ:EXEL) has caught the eye of our stock screener as an affordable growth stock. NASDAQ:EXEL is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

Analyzing Growth Metrics

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:EXEL has earned a 7 for growth:

EXEL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.31%.
EXEL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.91% yearly.
The Earnings Per Share is expected to grow by 34.69% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 11.19% on average over the next years. This is quite good.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

What does the Valuation looks like for NASDAQ:EXEL

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:EXEL, the assigned 5 reflects its valuation:

94.19% of the companies in the same industry are more expensive than EXEL, based on the Price/Earnings ratio.
Based on the Price/Forward Earnings ratio, EXEL is valued cheaply inside the industry as 96.18% of the companies are valued more expensively.
94.02% of the companies in the same industry are more expensive than EXEL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, EXEL is valued cheaply inside the industry as 96.84% of the companies are valued more expensively.
The excellent profitability rating of EXEL may justify a higher PE ratio.
EXEL's earnings are expected to grow with 28.35% in the coming years. This may justify a more expensive valuation.

Health Insights: NASDAQ:EXEL

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:EXEL has received a 7 out of 10:

An Altman-Z score of 7.90 indicates that EXEL is not in any danger for bankruptcy at the moment.
EXEL has a Altman-Z score of 7.90. This is amongst the best in the industry. EXEL outperforms 84.55% of its industry peers.
EXEL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
A Current Ratio of 3.83 indicates that EXEL has no problem at all paying its short term obligations.
EXEL has a Quick Ratio of 3.76. This indicates that EXEL is financially healthy and has no problem in meeting its short term obligations.

Understanding NASDAQ:EXEL's Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:EXEL was assigned a score of 8 for profitability:

EXEL has a better Return On Assets (3.09%) than 95.35% of its industry peers.
EXEL has a Return On Equity of 3.92%. This is amongst the best in the industry. EXEL outperforms 94.85% of its industry peers.
With an excellent Return On Invested Capital value of 1.23%, EXEL belongs to the best of the industry, outperforming 94.52% of the companies in the same industry.
The last Return On Invested Capital (1.23%) for EXEL is well below the 3 year average (6.67%), which needs to be investigated, but indicates that EXEL had better years and this may not be a problem.
EXEL's Profit Margin of 5.18% is amongst the best of the industry. EXEL outperforms 95.68% of its industry peers.
EXEL's Operating Margin of 2.31% is amongst the best of the industry. EXEL outperforms 94.52% of its industry peers.
The Gross Margin of EXEL (96.24%) is better than 95.85% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Check the latest full fundamental report of EXEL for a complete fundamental analysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.