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

Last update: Jul 18, 2024

EXELIXIS INC (NASDAQ:EXEL) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NASDAQ:EXEL showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

ChartMill's Evaluation of Valuation

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 8 reflects its valuation:

EXEL's Price/Earnings ratio is rather cheap when compared to the industry. EXEL is cheaper than 95.27% of the companies in the same industry.
Based on the Price/Forward Earnings ratio, EXEL is valued cheaper than 95.80% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.79. EXEL is valued slightly cheaper when compared to this.
Based on the Enterprise Value to EBITDA ratio, EXEL is valued cheaper than 95.62% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EXEL is valued cheaply inside the industry as 97.90% of the companies are valued more expensively.
EXEL's 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.

Understanding NASDAQ:EXEL's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:EXEL, the assigned 7 is a significant indicator of profitability:

With an excellent Return On Assets value of 7.31%, EXEL belongs to the best of the industry, outperforming 96.85% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.64%, EXEL belongs to the top of the industry, outperforming 96.32% of the companies in the same industry.
The Return On Invested Capital of EXEL (6.66%) is better than 95.10% of its industry peers.
Looking at the Profit Margin, with a value of 11.10%, EXEL belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
Looking at the Operating Margin, with a value of 11.07%, EXEL belongs to the top of the industry, outperforming 94.92% of the companies in the same industry.
EXEL has a better Gross Margin (95.69%) than 96.32% of its industry peers.

Looking at the Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:EXEL scores a 7 out of 10:

EXEL has an Altman-Z score of 6.99. This indicates that EXEL is financially healthy and has little risk of bankruptcy at the moment.
EXEL's Altman-Z score of 6.99 is amongst the best of the industry. EXEL outperforms 81.79% of its industry peers.
There is no outstanding debt for EXEL. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and 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.
EXEL has a Quick Ratio of 3.41. This indicates that EXEL is financially healthy and has no problem in meeting its short term obligations.

How We Gauge Growth for NASDAQ:EXEL

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:EXEL boasts a 6 out of 10:

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.
The Revenue has grown by 10.99% in the past year. This is quite good.
The Revenue has been growing by 16.47% on average over the past years. This is quite good.
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.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

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.