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

Our stock screener has singled out EXELIXIS INC (NASDAQ:EXEL) as an attractive growth opportunity. NASDAQ:EXEL is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

Assessing Growth for NASDAQ:EXEL

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:

• The Revenue has grown by 8.31% in the past year. This is quite good.
• EXEL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.91% yearly.
• EXEL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 34.69% yearly.
• Based on estimates for the next years, EXEL will show a quite strong growth in Revenue. The Revenue will grow by 11.19% on average per year.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Valuation Analysis for NASDAQ:EXEL

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:EXEL scores a 6 out of 10:

• EXEL's Price/Earnings ratio is rather cheap when compared to the industry. EXEL is cheaper than 94.42% of the companies in the same industry.
• EXEL's Price/Forward Earnings ratio is rather cheap when compared to the industry. EXEL is cheaper than 96.45% of the companies in the same industry.
• 94.08% 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 96.95% of the companies listed in the same industry.
• EXEL has an outstanding profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as EXEL's earnings are expected to grow with 28.35% in the coming years.

Looking at the Health

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 7 out of 10:

• An Altman-Z score of 7.79 indicates that EXEL is not in any danger for bankruptcy at the moment.
• The Altman-Z score of EXEL (7.79) is better than 82.23% 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 3.83 indicates that EXEL has no problem at all paying its short term obligations.
• A Quick Ratio of 3.76 indicates that EXEL has no problem at all paying its short term obligations.

Profitability Analysis for NASDAQ:EXEL

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:

• The Return On Assets of EXEL (3.09%) is better than 95.60% of its industry peers.
• With an excellent Return On Equity value of 3.92%, EXEL belongs to the best of the industry, outperforming 95.09% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 1.23%, EXEL belongs to the top of the industry, outperforming 94.59% of the companies in the same industry.
• The last Return On Invested Capital (1.23%) for EXEL is well below the 3 year average (6.67%), which needs to be investigated, but indicates that EXEL had better years and this may not be a problem.
• EXEL's Profit Margin of 5.18% is amongst the best of the industry. EXEL outperforms 95.77% of its industry peers.
• EXEL has a Operating Margin of 2.31%. This is amongst the best in the industry. EXEL outperforms 94.59% of its industry peers.
• With an excellent Gross Margin value of 96.24%, EXEL belongs to the best of the industry, outperforming 95.77% of the companies in the same industry.

Every day, new Affordable Growth stocks can be found on ChartMill 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.