NASDAQ:EXEL, an undervalued stock with good fundamentals.

EXELIXIS INC (NASDAQ:EXEL) was identified as a decent value stock by our stock screener. NASDAQ:EXEL scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Evaluating Valuation: 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 8 reflects its valuation:

• 97.20% of the companies in the same industry are more expensive than EXEL, based on the Price/Earnings ratio.
• EXEL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.02.
• 94.76% of the companies in the same industry are more expensive than EXEL, based on the Price/Forward Earnings ratio.
• EXEL's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EXEL is cheaper than 96.33% of the companies in the same industry.
• EXEL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EXEL is cheaper than 97.20% of the companies in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The excellent 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 44.16% in the coming years.

Looking at the Profitability

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:

• The Return On Assets of EXEL (12.62%) is better than 98.43% of its industry peers.
• Looking at the Return On Equity, with a value of 16.51%, EXEL belongs to the top of the industry, outperforming 97.38% of the companies in the same industry.
• EXEL has a Return On Invested Capital of 13.15%. This is amongst the best in the industry. EXEL outperforms 97.03% of its industry peers.
• The 3 year average ROIC (7.03%) for EXEL is below the current ROIC(13.15%), indicating increased profibility in the last year.
• With an excellent Profit Margin value of 17.38%, EXEL belongs to the best of the industry, outperforming 98.08% of the companies in the same industry.
• The Operating Margin of EXEL (20.00%) is better than 97.38% of its industry peers.
• EXEL has a better Gross Margin (96.05%) than 97.03% of its industry peers.

ChartMill's Evaluation of Health

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

• An Altman-Z score of 8.74 indicates that EXEL is not in any danger for bankruptcy at the moment.
• The Altman-Z score of EXEL (8.74) is better than 84.62% 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.
• A Current Ratio of 4.27 indicates that EXEL has no problem at all paying its short term obligations.
• A Quick Ratio of 4.21 indicates that EXEL has no problem at all paying its short term obligations.

Looking at the Growth

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:EXEL was assigned a score of 6 for growth:

• EXEL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 156.86%, which is quite impressive.
• Looking at the last year, EXEL shows a quite strong growth in Revenue. The Revenue has grown by 17.49% in the last year.
• 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.
• The Earnings Per Share is expected to grow by 35.45% on average over the next years. This is a very strong growth
• 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.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

Keep in mind

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.