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These Fundamentals Make Exelixis, Inc. (NASDAQ:EXEL) Truly Worth Looking At

Simply Wall St

Exelixis, Inc. (NASDAQ:EXEL) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of EXEL, it is a financially-sound company with a great history and an optimistic future outlook. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Exelixis here.

Outstanding track record with flawless balance sheet

In the previous year, EXEL has ramped up its bottom line by 99%, with its latest earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 43%, which is what investors like to see!

NasdaqGS:EXEL Past and Future Earnings, August 26th 2019

EXEL's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that EXEL has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. EXEL currently has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is rather impressive for a US$6.1b market cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.

NasdaqGS:EXEL Historical Debt, August 26th 2019

Next Steps:

For Exelixis, there are three fundamental factors you should further examine:

  1. Valuation: What is EXEL worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether EXEL is currently mispriced by the market.
  2. Dividend Income vs Capital Gains: Does EXEL return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from EXEL as an investment.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of EXEL? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.