EXELIXIS INC (NASDAQ:EXEL) – A Strong Growth Stock with Attractive 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 financial health and profitability. Additionally, its valuation appears reasonable compared to industry peers, making it an interesting candidate for investors seeking growth at a reasonable price.

Growth Prospects

• Revenue Growth: EXEL has increased revenue by 18.49% over the past year, with a 17.51% annual growth rate over several years.
• Earnings Expansion: Earnings per share surged by 205.56% in the last year, with a consistent annual growth rate of 12.65%.
• Future Expectations: Analysts project EPS growth of 26.65% annually, indicating accelerating profitability.

Valuation Highlights

• P/E Ratio: At 19.87, EXEL trades below the industry average P/E of 57.75 and the S&P 500’s 26.03.
• Forward P/E: The forward P/E of 16.10 suggests the stock is priced attractively relative to future earnings.
• Enterprise Value/EBITDA: EXEL is cheaper than 95% of its biotechnology peers based on this metric.

Financial Health & Profitability

• Strong Balance Sheet: The company has no debt, with an Altman-Z score of 12.17, signaling low bankruptcy risk.
• High Profit Margins: EXEL’s profit margin (24.04%) and operating margin (31.81%) rank in the top 4% of the industry.
• Return Metrics: Return on equity (23.23%) and return on invested capital (21.31%) are well above industry averages.

For a deeper look at EXEL’s fundamentals, review the full analysis report.

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

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.