Exelixis logged a -1.2% change during today's morning session, and is now trading at a price of $36.01 per share.
Exelixis returned gains of 71.4% last year, with its stock price reaching a high of $36.73 and a low of $19.2. Over the same period, the stock outperformed the S&P 500 index by 39.0%. More recently, the company's 50-day average price was $30.25. Exelixis, Inc., an oncology company, focuses on the discovery, development, and commercialization of new medicines for difficult-to-treat cancers in the United States. Based in Alameda, CA, the Large-Cap Health Care company has 1,310 full time employees. Exelixis has not offered a dividend during the last year.
Increasing Revenues but Narrowing Margins:
| 2017 | 2018 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $452 | $854 | $968 | $988 | $1,611 | $1,830 |
| Operating Margins | 37% | 51% | 38% | 11% | 13% | 9% |
| Net Margins | 34% | 81% | 33% | 11% | 11% | 11% |
| Net Income (M) | $154 | $690 | $321 | $112 | $182 | $208 |
| Net Interest Expense (M) | $9 | n/a | $28 | $20 | $33 | $87 |
| Depreciation & Amort. (M) | $1 | $8 | $8 | $9 | $21 | $26 |
| Diluted Shares (M) | 312 | 313 | 309 | 322 | 325 | 321 |
| Earnings Per Share | $0.49 | $2.21 | $1.02 | $0.35 | $0.56 | $0.65 |
| EPS Growth | n/a | 351.02% | -53.85% | -65.69% | 60.0% | 16.07% |
| Avg. Price | $26.66 | $21.36 | $21.45 | $20.87 | $20.14 | $35.95 |
| P/E Ratio | 51.27 | 9.21 | 20.24 | 57.97 | 35.33 | 55.31 |
| Free Cash Flow (M) | $212 | $663 | $514 | $179 | $335 | $293 |
| CAPEX (M) | $5 | $64 | $13 | $30 | $28 | $40 |
| Current Ratio | 4.21 | 8.5 | 6.99 | 5.43 | 4.99 | 3.34 |
Exelixis has rapidly growing revenues and a flat capital expenditure trend, an excellent current ratio of 3.34, and positive EPS growth. However, the firm suffers from weak operating margins with a negative growth trend and positive cash flows.
a Very Low P/E Ratio but Priced at a Premium:
Exelixis has a trailing twelve month P/E ratio of 19.5, compared to an average of 26.07 for the Health Care sector. Based on its EPS guidance of $1.7, the company has a forward P/E ratio of 17.8. According to the 19.4% compound average growth rate of Exelixis's historical and projected earnings per share, the company's PEG ratio is 1.0. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 13.5%. On this basis, the company's PEG ratio is 1.45. This implies that the shares are fairly valued. In contrast, Exelixis is likely overvalued compared to the book value of its equity, since its P/B ratio of 4.52 is higher than the sector average of 3.53. The company's shares are currently trading 254.7% below their Graham number.
Exelixis Has an Analyst Consensus that Shares Are Overpriced:
The 22 analysts following Exelixis have set target prices ranging from $18.9 to $38.0 per share, for an average of $31.83 with a buy rating. The company is trading 13.1% away from its average target price, indicating that there is an analyst belief that shares are overpriced.
Exelixis has an average amount of shares sold short because 3.7% of the company's shares are sold short. Institutions own 89.2% of the company's shares, and the insider ownership rate stands at 1.61%, suggesting a large amount of insider shareholders. The largest shareholder is Blackrock Inc., whose 11% stake in the company is worth $1,154,911,464.
