Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Exelixis, Inc. (NASDAQ:EXEL) due to its excellent fundamentals in more than one area. EXEL is a company with great financial health as well as a a great track record of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Exelixis here.
Outstanding track record with flawless balance sheet
Over the past few years, EXEL has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. This illustrates a strong track record, leading to a satisfying return on equity of 54%, which is what investors like to see! EXEL’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. EXEL seems to have put its debt to good use, generating operating cash levels of 27.78x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For Exelixis, there are three important aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for EXEL’s future growth? Take a look at our free research report of analyst consensus for EXEL’s outlook.
- 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.
- 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 firstname.lastname@example.org. 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.