EXELIXIS INC (NASDAQ:EXEL) Emerges as a Top Growth at a Reasonable Price (GARP) Stock

Investors looking for growth chances often meet the difficulty of weighing expansion possibility against fair prices, a method usually called Growth at a Reasonable Price (GARP). This idea prevents paying too much for future profits while focusing on companies with good basics and lasting growth paths. One way to find these options includes looking for stocks with high growth scores, good profit and money strength, and prices that are not too high. EXELIXIS INC (NASDAQ:EXEL) recently came out of such a search, getting a total basic score of 8 out of 10, suggesting it might suit this investment plan well.

Growth and Valuation Details
EXEL shows good growth features, receiving a growth score of 8. In the last year, the company raised its earnings per share by 67.74%, with an average yearly EPS rise of 12.65% over a few years. Income growth has also been good, going up 10.73% in the most recent year and averaging 17.51% each year in earlier times. Looking ahead, experts predict EPS growth of 22.20% and income growth of 10.31%, pointing to continued expansion. These numbers are important for GARP plans, as they show the company is not only growing but is likely to keep doing so at a good speed.

Regarding price, EXEL has a score of 8, showing it is fairly valued compared to its growth outlook. With a forward P/E ratio of 13.41, it trades for less than 95.45% of its biotechnology industry rivals and much under the S&P 500 average of 34.91. The enterprise value to EBITDA and price to free cash flow ratios also show lower prices than industry standards. This mix of good growth and fair price is key for affordable growth investing, as it helps lower the danger of paying too much for future profits while benefiting from upward movement.

Profit and Money Strength
EXEL does very well in profit, scoring 8 in this group. The company has a return on equity of 29.62% and a profit margin of 27.01%, doing better than over 95% of its industry rivals. Its operating margin is 33.71%, further showing effective operations. High profit is a main part of the affordable growth plan, as it suggests the company can change income into earnings well, supporting future growth without too much need for outside money.

Money strength is another point of power, with a score of 9. EXEL has no debt, a current ratio of 3.51, and an Altman-Z score of 11.72, showing low failure risk and good cash access. These points are key for lasting growth, as they give the steadiness required to put money into research, development, and expansion even during economic shifts. For GARP investors, such money toughness lowers the risk linked to growth investing, making sure the company can handle difficulties while carrying out its growth plan.

End and More Study
EXELIXIS INC makes a strong case for affordable growth investment, mixing good past and expected growth with fair prices, high profit, and very good money strength. These qualities match well with the measures used in GARP plans, which try to get growth without overpaying. Investors wanting a full basic study can see the complete report here.

For those wishing to find like investment chances, more results from the affordable growth search can be seen via this link.

Disclaimer: This article is for information only and does not make investment advice. Investors should do their own study and talk with a money advisor before making any investment choices.