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Don't overlook NASDAQ:EXEL—a stock with solid growth prospects and a reasonable valuation.

By Mill Chart

Last update: Oct 13, 2023

Our stock screener has spotted EXELIXIS INC (NASDAQ:EXEL) as a growth stock which is not overvalued. NASDAQ:EXEL is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

What does the Growth looks like for NASDAQ:EXEL

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 7 for growth:

  • The Revenue has grown by 10.25% in the past year. This is quite good.
  • Measured over the past years, EXEL shows a very strong growth in Revenue. The Revenue has been growing by 28.91% on average per year.
  • Based on estimates for the next years, EXEL will show a very strong growth in Earnings Per Share. The EPS will grow by 34.74% on average per year.
  • The Revenue is expected to grow by 10.39% on average over the next years. This is quite good.
  • 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.

Exploring NASDAQ:EXEL's 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 6 reflects its valuation:

  • Based on the Price/Earnings ratio, EXEL is valued cheaply inside the industry as 94.38% of the companies are valued more expensively.
  • 96.20% of the companies in the same industry are more expensive than EXEL, based on the Price/Forward Earnings ratio.
  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EXEL indicates a rather cheap valuation: EXEL is cheaper than 94.55% of the companies listed in the same industry.
  • 97.02% of the companies in the same industry are more expensive than EXEL, based on the Price/Free Cash Flow ratio.
  • The decent 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 29.13% in the coming years.

Assessing Health Metrics for NASDAQ:EXEL

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:EXEL, the assigned 7 for health provides valuable insights:

  • EXEL has an Altman-Z score of 7.78. 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 7.78, EXEL belongs to the top of the industry, outperforming 86.78% 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.
  • A Current Ratio of 4.68 indicates that EXEL has no problem at all paying its short term obligations.
  • EXEL has a Quick Ratio of 4.60. This indicates that EXEL is financially healthy and has no problem in meeting its short term obligations.

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 7 out of 10:

  • With an excellent Return On Assets value of 5.23%, EXEL belongs to the best of the industry, outperforming 95.37% of the companies in the same industry.
  • EXEL has a better Return On Equity (6.50%) than 94.71% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 3.94%, EXEL belongs to the top of the industry, outperforming 95.21% of the companies in the same industry.
  • The Profit Margin of EXEL (9.58%) is better than 95.37% of its industry peers.
  • With an excellent Operating Margin value of 8.24%, EXEL belongs to the best of the industry, outperforming 95.21% of the companies in the same industry.
  • The Gross Margin of EXEL (96.31%) is better than 96.69% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Our latest full fundamental report of EXEL contains the most current fundamental analsysis.

Disclaimer

This article should in no way be interpreted as advice in any way. 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.

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EXELIXIS INC

NASDAQ:EXEL (2/23/2024, 10:32:05 AM)

21.545

+0.84 (+4.03%)

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