EXELIXIS INC (NASDAQ:EXEL) – A Strong Growth Stock with Reasonable Valuation

EXELIXIS INC (NASDAQ:EXEL) was identified as an affordable growth stock by our screening process. The company demonstrates strong growth potential while maintaining solid profitability and financial health. Additionally, its valuation appears reasonable compared to industry peers, making it an interesting candidate for investors seeking growth at a sensible price.

Growth Prospects

• Earnings Growth: EXEL’s earnings per share (EPS) surged by 189.06% over the past year, with an average annual growth rate of 12.65% in recent years.
• Revenue Expansion: Revenue increased by 18.50% in the last year and has grown at an average annual rate of 17.51% over the past several years.
• Future Expectations: Analysts project EPS growth of 26.65% annually, with revenue expected to expand by 10.95% per year.

Valuation Assessment

• P/E Ratio: At 19.55, EXEL’s P/E ratio is below the industry average of 64.02, suggesting a more reasonable valuation.
• Price/Free Cash Flow: The stock is priced attractively relative to cash flow, ranking cheaper than 96.45% of its industry peers.
• PEG Ratio: The PEG ratio indicates fair valuation when accounting for expected earnings growth.

Financial Health & Profitability

• Strong Balance Sheet: EXEL has no debt, with a high Altman-Z score of 10.47, reflecting minimal bankruptcy risk.
• Profit Margins: The company maintains strong profitability, with a 24.04% net profit margin and 31.81% operating margin, outperforming most competitors.
• Return Metrics: Return on equity (ROE) stands at 23.23%, while return on invested capital (ROIC) is 21.31%, both well above industry averages.

Our Affordable Growth screener lists more stocks with similar characteristics and is updated daily.
For a deeper analysis, review the full fundamental report on EXELIXIS.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own research before making investment decisions.