In the world of growth stocks, NASDAQ:EXEL shines as a value proposition.

Here's EXELIXIS INC (NASDAQ:EXEL) for you, a growth stock our stock screener believes is undervalued. NASDAQ:EXEL is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Growth Assessment of NASDAQ:EXEL

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:EXEL has achieved a 7 out of 10:

• Looking at the last year, EXEL shows a quite strong growth in Revenue. The Revenue has grown by 8.31% in the last year.
• Measured over the past years, EXEL shows a very strong growth in Revenue. The Revenue has been growing by 28.91% on average per year.
• Based on estimates for the next years, EXEL will show a very strong growth in Earnings Per Share. The EPS will grow by 34.69% on average per year.
• EXEL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.52% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Valuation Analysis for NASDAQ:EXEL

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:EXEL has earned a 6 for valuation:

• EXEL's Price/Earnings ratio is rather cheap when compared to the industry. EXEL is cheaper than 94.24% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of EXEL indicates a rather cheap valuation: EXEL is cheaper than 96.78% of the companies listed in the same industry.
• 93.90% of the companies in the same industry are more expensive than EXEL, based on the Enterprise Value to EBITDA ratio.
• 97.29% of the companies in the same industry are more expensive than EXEL, based on the Price/Free Cash Flow ratio.
• The excellent profitability rating of EXEL may justify a higher PE ratio.
• EXEL's earnings are expected to grow with 33.70% in the coming years. This may justify a more expensive valuation.

Health Analysis for NASDAQ:EXEL

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:EXEL, the assigned 7 for health provides valuable insights:

• An Altman-Z score of 7.38 indicates that EXEL is not in any danger for bankruptcy at the moment.
• EXEL has a better Altman-Z score (7.38) than 82.03% 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.
• A Quick Ratio of 3.76 indicates that EXEL has no problem at all paying its short term obligations.

What does the Profitability looks like for NASDAQ:EXEL

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:EXEL has earned a 8 out of 10:

• EXEL has a Return On Assets of 3.09%. This is amongst the best in the industry. EXEL outperforms 95.42% of its industry peers.
• EXEL's Return On Equity of 3.92% is amongst the best of the industry. EXEL outperforms 95.08% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 1.23%, EXEL belongs to the top of the industry, outperforming 94.41% 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.
• With an excellent Profit Margin value of 5.18%, EXEL belongs to the best of the industry, outperforming 95.59% of the companies in the same industry.
• EXEL's Operating Margin of 2.31% is amongst the best of the industry. EXEL outperforms 94.41% of its industry peers.
• EXEL has a Gross Margin of 96.24%. This is amongst the best in the industry. EXEL outperforms 95.93% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Our latest full fundamental report of EXEL contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.