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

EXELIXIS INC (NASDAQ:EXEL) was identified as an affordable growth stock by our stock screener. The company, focused on oncology treatments, shows strong growth potential while maintaining solid financial health and profitability. Its valuation remains reasonable compared to industry peers, making it an interesting candidate for investors seeking growth at a reasonable price.

Growth Prospects

• Strong Earnings Growth: EXEL’s earnings per share (EPS) surged by 205.56% over the past year, with a consistent annual growth rate of 12.65% over the last several years.
• Revenue Expansion: Revenue increased by 24.50% in the past year, with a five-year annualized growth rate of 17.51%.
• Future Expectations: Analysts project EPS growth of 24.67% and revenue growth of 10.68% annually in the coming years, indicating sustained momentum.

Valuation Highlights

• Attractive P/E Ratio: EXEL trades at a P/E of 18.99, below the industry average of 60.65 and the S&P 500’s 26.60.
• Undervalued Multiples: The company’s Enterprise Value/EBITDA and Price/Free Cash Flow ratios are cheaper than 96.42% and 95.53% of its industry peers, respectively.
• Forward Earnings Support: With a Forward P/E of 15.38, EXEL appears reasonably priced relative to future earnings potential.

Financial Health & Profitability

• No Debt: EXEL carries no outstanding debt, strengthening its balance sheet and reducing financial risk.
• High Profit Margins: The company boasts a 27.99% profit margin and 35.43% operating margin, outperforming most competitors.
• Strong Returns: EXEL delivers a 30.20% Return on Equity (ROE) and 26.25% Return on Invested Capital (ROIC), ranking near the top of its sector.

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 analysis before making investment decisions.