Investors should take notice of NASDAQ:EXEL—it offers a great deal for the fundamentals it presents.

Last update: Dec 20, 2024

Our stock screening tool has identified EXELIXIS INC (NASDAQ:EXEL) as an undervalued gem with strong fundamentals. NASDAQ:EXEL boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

ChartMill's Evaluation of Valuation

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:EXEL has received a 8 out of 10:

95.58% of the companies in the same industry are more expensive than EXEL, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of EXEL to the average of the S&P500 Index (27.42), we can say EXEL is valued slightly cheaper.
95.04% of the companies in the same industry are more expensive than EXEL, based on the Price/Forward Earnings ratio.
96.99% of the companies in the same industry are more expensive than EXEL, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EXEL indicates a rather cheap valuation: EXEL is cheaper than 96.28% of the companies listed 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.
EXEL's earnings are expected to grow with 52.07% in the coming years. This may justify a more expensive valuation.

Understanding NASDAQ:EXEL's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:EXEL, the assigned 8 is noteworthy for profitability:

With an excellent Return On Assets value of 15.77%, EXEL belongs to the best of the industry, outperforming 98.23% of the companies in the same industry.
With an excellent Return On Equity value of 20.52%, EXEL belongs to the best of the industry, outperforming 97.35% of the companies in the same industry.
EXEL's Return On Invested Capital of 18.78% is amongst the best of the industry. EXEL outperforms 97.88% of its industry peers.
The last Return On Invested Capital (18.78%) for EXEL is above the 3 year average (7.03%), which is a sign of increasing profitability.
With an excellent Profit Margin value of 22.43%, EXEL belongs to the best of the industry, outperforming 97.52% of the companies in the same industry.
EXEL has a Operating Margin of 29.22%. This is amongst the best in the industry. EXEL outperforms 98.58% of its industry peers.
EXEL has a Gross Margin of 96.25%. This is amongst the best in the industry. EXEL outperforms 96.64% of its industry peers.

A Closer Look at Health for NASDAQ:EXEL

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 8 reflects its health status:

An Altman-Z score of 10.23 indicates that EXEL is not in any danger for bankruptcy at the moment.
EXEL has a Altman-Z score of 10.23. This is amongst the best in the industry. EXEL outperforms 86.90% 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.
EXEL has a Current Ratio of 3.93. This indicates that EXEL is financially healthy and has no problem in meeting its short term obligations.
A Quick Ratio of 3.88 indicates that EXEL has no problem at all paying its short term obligations.

Looking at the 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 7 out of 10:

EXEL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 485.71%, which is quite impressive.
EXEL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.31%.
The Revenue has been growing by 16.47% on average over the past years. This is quite good.
EXEL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 40.97% yearly.
Based on estimates for the next years, EXEL will show a quite strong growth in Revenue. The Revenue will grow by 10.44% on average per year.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

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 article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.