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

EXELIXIS INC (NASDAQ:EXEL) was identified as an affordable growth stock by our stock screener. EXEL is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Assessing Growth for EXEL

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. EXEL has earned a 7 for growth:

• 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.
• Looking at the last year, EXEL shows a quite strong growth in Revenue. The Revenue has grown by 18.50% in the last year.
• Measured over the past years, EXEL shows a quite strong growth in Revenue. The Revenue has been growing by 17.51% on average per year.
• The Earnings Per Share is expected to grow by 25.81% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 9.91% 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.

Valuation Analysis for EXEL

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. EXEL boasts a 6 out of 10:

• Based on the Price/Earnings ratio, EXEL is valued cheaply inside the industry as 96.33% of the companies are valued more expensively.
• Compared to an average S&P500 Price/Earnings ratio of 28.64, EXEL is valued a bit cheaper.
• EXEL's Price/Forward Earnings ratio is rather cheap when compared to the industry. EXEL is cheaper than 94.93% of the companies in the same industry.
• Based on the Enterprise Value to EBITDA ratio, EXEL is valued cheaply inside the industry as 96.68% of the companies are valued more expensively.
• Based on the Price/Free Cash Flow ratio, EXEL is valued cheaply inside the industry as 96.85% of the companies are valued more expensively.
• The excellent profitability rating of EXEL may justify a higher PE ratio.
• EXEL's earnings are expected to grow with 19.76% in the coming years. This may justify a more expensive valuation.

A Closer Look at Health for EXEL

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. EXEL has earned a 9 out of 10:

• EXEL has an Altman-Z score of 10.77. 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 10.77, EXEL belongs to the top of the industry, outperforming 88.29% 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.
• EXEL has a Current Ratio of 3.63. This indicates that EXEL is financially healthy and has no problem in meeting its short term obligations.
• EXEL has a Quick Ratio of 3.58. This indicates that EXEL is financially healthy and has no problem in meeting its short term obligations.

How do we evaluate the Profitability for EXEL?

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. EXEL was assigned a score of 8 for profitability:

• EXEL has a better Return On Assets (17.68%) than 97.90% of its industry peers.
• EXEL has a better Return On Equity (23.23%) than 97.55% of its industry peers.
• EXEL's Return On Invested Capital of 21.31% is amongst the best of the industry. EXEL outperforms 98.25% of its industry peers.
• The 3 year average ROIC (10.78%) for EXEL is below the current ROIC(21.31%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 24.04%, EXEL belongs to the top of the industry, outperforming 97.38% of the companies in the same industry.
• EXEL's Operating Margin of 31.81% is amongst the best of the industry. EXEL outperforms 98.60% of its industry peers.
• With an excellent Gross Margin value of 96.49%, EXEL belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.

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

Check the latest full fundamental report of EXEL for a complete fundamental analysis.

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.