NASDAQ:EXEL appears to be flying under the radar despite its strong fundamentals.

Last update: Jan 14, 2025

EXELIXIS INC (NASDAQ:EXEL) has caught the attention of our stock screener as a great value stock. NASDAQ:EXEL excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Valuation Analysis for NASDAQ:EXEL

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:EXEL has earned a 8 for valuation:

Based on the Price/Earnings ratio, EXEL is valued cheaply inside the industry as 95.58% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of EXEL to the average of the S&P500 Index (27.10), we can say EXEL is valued slightly cheaper.
Based on the Price/Forward Earnings ratio, EXEL is valued cheaply inside the industry as 95.04% of the companies are valued more expensively.
Based on the Enterprise Value to EBITDA ratio, EXEL is valued cheaply inside the industry as 96.99% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, EXEL is valued cheaper than 95.75% 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 52.33% in the coming years.

A Closer Look at Profitability for NASDAQ:EXEL

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:

Looking at the Return On Assets, with a value of 15.77%, EXEL belongs to the top of the industry, outperforming 98.05% of the companies in the same industry.
EXEL's Return On Equity of 20.52% is amongst the best of the industry. EXEL outperforms 97.17% of its industry peers.
EXEL's Return On Invested Capital of 18.78% is amongst the best of the industry. EXEL outperforms 97.70% 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.
EXEL has a Profit Margin of 22.43%. This is amongst the best in the industry. EXEL outperforms 97.35% of its industry peers.
EXEL's Operating Margin of 29.22% is amongst the best of the industry. EXEL outperforms 98.41% of its industry peers.
EXEL has a better Gross Margin (96.25%) than 96.64% of its industry peers.

Assessing 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 10.64. 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 10.64, EXEL belongs to the top of the industry, outperforming 87.08% of the companies in the same industry.
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 3.93. This indicates that EXEL is financially healthy and has no problem in meeting 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.

Analyzing Growth Metrics

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:EXEL has achieved 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.
The Revenue has grown by 17.31% in the past year. This is quite good.
EXEL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.47% yearly.
The Earnings Per Share is expected to grow by 43.78% on average over the next years. This is a very strong growth
Based on estimates for the next years, EXEL will show a quite strong growth in Revenue. The Revenue will grow by 11.43% 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.

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

Disclaimer

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.