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I’ve been keeping an eye on Exelixis, Inc. (NASDAQ:EXEL) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe EXEL has a lot to offer. Basically, it is a financially-healthy company with an impressive track record and an optimistic growth 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 excellent balance sheet
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 47% return to shareholders, which paints a buoyant picture for the company.
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. With a debt-to-equity ratio of -0.2%, EXEL’s debt level is rather small. EXEL has plenty of financial flexibility, without large debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.
For Exelixis, there are three essential factors you should further examine:
- 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!
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 email@example.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.