NASDAQ:EXEL is an undervalued gem with solid fundamentals.

Last update: Mar 29, 2024

Our stock screener has spotted EXELIXIS INC (NASDAQ:EXEL) as an undervalued stock with solid fundamentals. NASDAQ:EXEL shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Understanding 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 7 reflects its valuation:

95.41% of the companies in the same industry are more expensive than EXEL, based on the Price/Earnings ratio.
Based on the Price/Forward Earnings ratio, EXEL is valued cheaper than 96.94% of the companies in the same industry.
Based on the Enterprise Value to EBITDA ratio, EXEL is valued cheaply inside the industry as 94.90% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, EXEL is valued cheaper than 96.60% 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 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 45.50% 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 7 out of 10:

The Return On Assets of EXEL (7.06%) is better than 96.60% of its industry peers.
The Return On Equity of EXEL (9.18%) is better than 95.92% of its industry peers.
EXEL has a better Return On Invested Capital (5.31%) than 95.58% of its industry peers.
Looking at the Profit Margin, with a value of 11.35%, EXEL belongs to the top of the industry, outperforming 96.26% of the companies in the same industry.
EXEL has a better Operating Margin (9.34%) than 95.58% of its industry peers.
With an excellent Gross Margin value of 96.04%, EXEL belongs to the best of the industry, outperforming 96.43% of the companies in the same industry.

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 7 reflects its health status:

EXEL has an Altman-Z score of 7.47. This indicates that EXEL is financially healthy and has little risk of bankruptcy at the moment.
EXEL's Altman-Z score of 7.47 is amongst the best of the industry. EXEL outperforms 81.80% 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 3.34 indicates that EXEL has no problem at all paying its short term obligations.
EXEL has a Quick Ratio of 3.30. This indicates that EXEL is financially healthy and has no problem in meeting its short term obligations.

Exploring NASDAQ:EXEL's Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:EXEL has received a 5 out of 10:

The Earnings Per Share has grown by an nice 12.28% over the past year.
Looking at the last year, EXEL shows a quite strong growth in Revenue. The Revenue has grown by 13.60% in the last year.
Measured over the past years, EXEL shows a quite strong growth in Revenue. The Revenue has been growing by 16.47% on average per year.
The Earnings Per Share is expected to grow by 30.94% on average over the next years. This is a very strong growth
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

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.