In the world of growth stocks, NASDAQ:EXEL shines as a value proposition.

Here's EXELIXIS INC (NASDAQ:EXEL) for you, a growth stock our stock screener believes is undervalued. NASDAQ:EXEL is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Understanding NASDAQ:EXEL's Growth Score

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:EXEL, the assigned 7 reflects its growth potential:

• The Earnings Per Share has grown by an impressive 485.71% over the past year.
• Looking at the last year, EXEL shows a quite strong growth in Revenue. The Revenue has grown by 17.31% in the last year.
• 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.
• EXEL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.44% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Looking at the Valuation

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 95.50% of the companies are valued more expensively.
• The average S&P500 Price/Earnings ratio is at 27.48. EXEL is valued slightly cheaper when compared to this.
• EXEL's Price/Forward Earnings ratio is rather cheap when compared to the industry. EXEL is cheaper than 94.95% of the companies in the same industry.
• 96.76% of the companies in the same industry are more expensive than EXEL, based on the Enterprise Value to EBITDA ratio.
• EXEL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EXEL is cheaper than 96.04% of the companies in the same industry.
• EXEL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• EXEL has an outstanding profitability rating, which may justify a higher PE ratio.
• EXEL's earnings are expected to grow with 52.33% in the coming years. This may justify a more expensive valuation.

How do we evaluate the Health 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 8 out of 10:

• EXEL has an Altman-Z score of 10.31. This indicates that EXEL is financially healthy and has little risk of bankruptcy at the moment.
• EXEL's Altman-Z score of 10.31 is amongst the best of the industry. EXEL outperforms 86.13% 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.
• A Current Ratio of 3.93 indicates that EXEL has no problem at all paying its short term obligations.
• EXEL has a Quick Ratio of 3.88. This indicates that EXEL is financially healthy and has no problem in meeting its short term obligations.

Profitability Analysis for NASDAQ:EXEL

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:EXEL scores a 8 out of 10:

• Looking at the Return On Assets, with a value of 15.77%, EXEL belongs to the top of the industry, outperforming 98.02% of the companies in the same industry.
• EXEL's Return On Equity of 20.52% is amongst the best of the industry. EXEL outperforms 97.12% of its industry peers.
• EXEL has a better Return On Invested Capital (18.78%) than 97.66% of its industry peers.
• The 3 year average ROIC (7.03%) for EXEL is below the current ROIC(18.78%), indicating increased profibility in the last year.
• The Profit Margin of EXEL (22.43%) is better than 97.30% of its industry peers.
• The Operating Margin of EXEL (29.22%) is better than 98.38% of its industry peers.
• The Gross Margin of EXEL (96.25%) is better than 96.58% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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.