When you look at NASDAQ:EXEL, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Last update: Jun 27, 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.

A Closer Look at Valuation for NASDAQ:EXEL

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:EXEL has achieved a 8 out of 10:

Based on the Price/Earnings ratio, EXEL is valued cheaply inside the industry as 95.10% of the companies are valued more expensively.
Based on the Price/Forward Earnings ratio, EXEL is valued cheaper than 95.45% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 19.99. EXEL is valued slightly cheaper when compared to this.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EXEL indicates a rather cheap valuation: EXEL is cheaper than 95.80% of the companies listed in the same industry.
97.55% 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.
EXEL's earnings are expected to grow with 44.08% in the coming years. This may justify a more expensive valuation.

Profitability Insights: NASDAQ:EXEL

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 Return On Assets of 7.31%. This is amongst the best in the industry. EXEL outperforms 96.68% of its industry peers.
EXEL has a better Return On Equity (9.64%) than 96.33% of its industry peers.
EXEL has a better Return On Invested Capital (6.66%) than 95.28% of its industry peers.
With an excellent Profit Margin value of 11.10%, EXEL belongs to the best of the industry, outperforming 95.98% of the companies in the same industry.
EXEL's Operating Margin of 11.07% is amongst the best of the industry. EXEL outperforms 94.93% of its industry peers.
EXEL has a Gross Margin of 95.69%. This is amongst the best in the industry. EXEL outperforms 96.50% of its industry peers.

Assessing Health Metrics for 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:

EXEL has an Altman-Z score of 6.95. This indicates that EXEL is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.95, EXEL belongs to the top of the industry, outperforming 83.22% 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.
EXEL has a Current Ratio of 3.46. This indicates that EXEL is financially healthy and has no problem in meeting its short term obligations.
A Quick Ratio of 3.41 indicates that EXEL has no problem at all paying its short term obligations.

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 6 for growth:

EXEL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.00%, which is quite impressive.
EXEL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.99%.
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 35.45% on average per year.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

More Decent Value stocks can be found in our Decent Value screener.

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

Disclaimer

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.