In a market where value is scarce, NASDAQ:EXEL offers a refreshing opportunity with its solid fundamentals.

Last update: Feb 13, 2024

Our stock screener has spotted EXELIXIS INC (NASDAQ:EXEL) as an undervalued stock with solid fundamentals. NASDAQ:EXEL shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

ChartMill's Evaluation of Valuation

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:EXEL scores a 7 out of 10:

Based on the Price/Earnings ratio, EXEL is valued cheaply inside the industry as 95.77% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EXEL indicates a rather cheap valuation: EXEL is cheaper than 97.12% of the companies listed in the same industry.
94.75% of the companies in the same industry are more expensive than EXEL, based on the Enterprise Value to EBITDA ratio.
96.79% of the companies in the same industry are more expensive than EXEL, based on the Price/Free Cash Flow ratio.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of EXEL may justify a higher PE ratio.
A more expensive valuation may be justified as EXEL's earnings are expected to grow with 45.38% in the coming years.

Understanding NASDAQ:EXEL's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:EXEL has achieved a 7:

EXEL has a better Return On Assets (7.06%) than 96.62% of its industry peers.
With an excellent Return On Equity value of 9.18%, EXEL belongs to the best of the industry, outperforming 95.60% of the companies in the same industry.
EXEL's Return On Invested Capital of 5.31% is amongst the best of the industry. EXEL outperforms 95.43% of its industry peers.
With an excellent Profit Margin value of 11.35%, EXEL belongs to the best of the industry, outperforming 96.28% of the companies in the same industry.
EXEL has a better Operating Margin (9.34%) than 95.26% of its industry peers.
EXEL's Gross Margin of 96.04% is amongst the best of the industry. EXEL outperforms 95.77% of its industry peers.

Deciphering NASDAQ:EXEL's Health Rating

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:EXEL, the assigned 7 reflects its health status:

An Altman-Z score of 6.58 indicates that EXEL is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.58, EXEL belongs to the best of the industry, outperforming 80.20% of the companies in the same industry.
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 3.34 indicates that EXEL has no problem at all paying its short term obligations.
A Quick Ratio of 3.30 indicates that EXEL has no problem at all paying its short term obligations.

Understanding NASDAQ:EXEL's Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:EXEL scores a 6 out of 10:

The Earnings Per Share has grown by an impressive 22.81% over the past year.
EXEL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.60%.
Measured over the past years, EXEL shows a quite strong growth in Revenue. The Revenue has been growing by 16.47% 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 28.61% on average per year.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

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For an up to date full fundamental analysis you can check the fundamental report of EXEL

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.