As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Exelixis Inc (NASDAQ:EXEL), it is a financially-sound company with a great history and a excellent future outlook. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, read the full report on Exelixis here.
Exceptional growth potential with flawless balance sheet
Bullish market analysts are forecasting fast-growing EXEL to deliver an exceptional sales growth rate of 64.00% over the next year. This is expected to flow down into an impressive return on equity of 28.67% over the next couple of years. In the past couple of years, EXEL has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 37.83% return to shareholders, which paints a buoyant picture for the company.
EXEL’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that EXEL manages its cash and cost levels well, which is an important determinant of the company’s health. EXEL currently has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is rather impressive for a US$5.83B 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.
For Exelixis, I’ve compiled three pertinent factors you should look at:
- 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.
- 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.
- 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!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.