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

Discover EXELIXIS INC (NASDAQ:EXEL), an undervalued growth gem identified by our stock screener. NASDAQ:EXEL is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

What does the Growth looks like for NASDAQ:EXEL

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:

• EXEL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 189.06%, which is quite impressive.
• Measured over the past years, EXEL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.65% on average per year.
• The Revenue has grown by 18.50% in the past year. This is quite good.
• The Revenue has been growing by 17.51% 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 25.81% yearly.
• EXEL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.91% yearly.
• 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.

Valuation Analysis for NASDAQ:EXEL

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 7 out of 10:

• Compared to the rest of the industry, the Price/Earnings ratio of EXEL indicates a rather cheap valuation: EXEL is cheaper than 96.09% of the companies listed in the same industry.
• EXEL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 30.43.
• Based on the Price/Forward Earnings ratio, EXEL is valued cheaply inside the industry as 95.38% of the companies are valued more expensively.
• The average S&P500 Price/Forward Earnings ratio is at 23.78. EXEL is valued slightly cheaper when compared to this.
• Based on the Enterprise Value to EBITDA ratio, EXEL is valued cheaply inside the industry as 97.34% of the companies are valued more expensively.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of EXEL indicates a rather cheap valuation: EXEL is cheaper than 97.34% of the companies listed in the same industry.
• 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 18.83% in the coming years.

Assessing Health Metrics 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 9 reflects its health status:

• An Altman-Z score of 10.06 indicates that EXEL is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 10.06, EXEL belongs to the top of the industry, outperforming 87.57% of the companies in the same industry.
• 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 3.63 indicates that EXEL has no problem at all paying its short term obligations.
• A Quick Ratio of 3.58 indicates that EXEL has no problem at all paying its short term obligations.

Analyzing Profitability Metrics

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:EXEL, the assigned 8 is a significant indicator of profitability:

• EXEL has a Return On Assets of 17.68%. This is amongst the best in the industry. EXEL outperforms 98.22% of its industry peers.
• EXEL has a Return On Equity of 23.23%. This is amongst the best in the industry. EXEL outperforms 97.87% of its industry peers.
• EXEL has a better Return On Invested Capital (21.31%) than 98.58% of its industry peers.
• The last Return On Invested Capital (21.31%) for EXEL is above the 3 year average (10.78%), which is a sign of increasing profitability.
• EXEL's Profit Margin of 24.04% is amongst the best of the industry. EXEL outperforms 97.69% of its industry peers.
• Looking at the Operating Margin, with a value of 31.81%, EXEL belongs to the top of the industry, outperforming 98.76% of the companies in the same industry.
• EXEL has a Gross Margin of 96.49%. This is amongst the best in the industry. EXEL outperforms 96.98% of its industry peers.

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

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

Keep in mind

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.