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Exelixis (EXEL)
:EXEL
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Exelixis
(NASDAQ:EXEL)80Outperform
Positive Factors
Financial Performance
Exelixis recorded diluted net income that exceeded previous forecasts, indicating stronger-than-expected profitability.
Financial Stability
Exelixis ended the year with a substantial cash position of approximately $1.75 billion, providing financial stability and flexibility.
Negative Factors
Market Risks
Risks include commercial risk regarding Cabometyx, failure to generate favorable clinical data, and the threat of generic erosion.
Exelixis (EXEL) vs. S&P 500 (SPY)
Market Cap
$10.72B
Dividend YieldN/A
Average Volume (3M)2.71M
Price to Earnings (P/E)21.8
Beta (1Y)0.26
Revenue Growth18.49%
EPS Growth176.71%
CountryUS
Employees1,147
SectorHealthcare
Sector Strength74
IndustryBiotechnology
Share Statistics
EPS (TTM)1.77
Shares Outstanding279,881,440
10 Day Avg. Volume2,847,082
30 Day Avg. Volume2,707,753
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)N/A
Price to Sales (P/S)4.94
Price to Cash Flow (P/CF)11.20
P/FCF Ratio11.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$37.94Price Target Upside-1.84% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering19
Exelixis Business Overview & Revenue Model
Company DescriptionExelixis, Inc. is a biopharmaceutical company, which engages in the development, commercialization, and discovery of new medicines for the treatment of cancer. It offers products under the brands of Cometriq, Cabometyx, and Cotellic. The company was founded by Corey S. Goodman and Stelios B. Papadopoulos on November 15, 1994 and is headquartered in Alameda, CA.
How the Company Makes MoneyExelixis generates revenue primarily through the sale of its proprietary drug, CABOMETYX, which is approved for multiple cancer indications. This serves as the company's main source of income. In addition to direct sales, Exelixis also earns money through collaborations and licensing agreements with other pharmaceutical companies, which may involve milestone payments and royalties. These partnerships often facilitate the development and commercialization of Exelixis's drug candidates in specific markets or for additional indications. Revenue is further supported by the company's strategic alliances, which help to expand its product pipeline and market reach.
Exelixis Financial Statement Overview
Summary
Exelixis presents a strong financial performance with high revenue growth, excellent margins, and robust cash flow generation. The balance sheet is healthy with low leverage, although a decrease in total assets warrants observation. Overall, the company is well-positioned in the biotechnology industry, but should monitor asset trends and continue optimizing net profit margins to maintain competitive strength.Income Statement
Exelixis shows a robust revenue growth of 18.5% from 2021 to 2022, and 13.6% from 2022 to 2023, indicating strong market performance. The company maintains high gross profit margins consistently at 100% in the latest year, which is exceptional. EBIT and EBITDA margins have improved significantly, with EBITDA margin rising from 11.1% in 2021 to 27.9% in 2023, demonstrating improved operational efficiency and cost management. However, net profit margin, though improved from 11.4% in the previous year to 24.0% in 2023, remains slightly behind the industry's high growth potential.88
Very Positive
Balance Sheet
The company's financial health is underscored by a solid equity base with an equity ratio of 76.1%, indicating a stable financial structure. The debt-to-equity ratio is low at 0.08, reflecting a conservative approach to leveraging. Return on equity has improved from 8.2% in 2021 to 23.2% in 2023, suggesting effective use of equity to generate earnings. Yet, a decline in total assets over time could be a potential risk if it affects future growth.81
Very Positive
Cash Flow
Operating cash flow has more than doubled from 2022 to 2023, indicating strong cash generation capabilities. Free cash flow also saw substantial growth, increasing from $170.4 million in 2022 to $700 million in 2023, reflecting efficient capital expenditure management. The operating cash flow to net income ratio is favorable at 1.34, showcasing the company's strong ability to convert net income into cash. Despite these positives, the volatile nature of investing cash flow could suggest ongoing strategic investments or asset management challenges.85
Very Positive
| Breakdown | ||||
| Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.17B | 1.83B | 1.61B | 1.43B | 987.54M | Gross Profit |
| 2.17B | 1.76B | 1.55B | 1.38B | 951.27M | EBIT |
| 604.62M | 170.88M | 201.48M | 286.67M | 110.06M | EBITDA |
| 718.75M | 196.60M | 222.36M | 300.30M | 110.06M | Net Income Common Stockholders |
| 521.27M | 207.76M | 182.28M | 231.06M | 111.78M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.11B | 995.30M | 1.31B | 1.47B | 1.21B | Total Assets |
| 2.95B | 2.94B | 3.07B | 2.62B | 2.14B | Total Debt |
| 190.82M | 189.94M | 190.17M | 51.27M | 49.09M | Net Debt |
| -26.55M | -73.05M | -311.02M | -595.90M | -270.13M | Total Liabilities |
| 703.49M | 678.45M | 583.06M | 405.62M | 258.22M | Stockholders Equity |
| 2.24B | 2.26B | 2.49B | 2.21B | 1.88B |
| Cash Flow | Free Cash Flow | |||
| 699.97M | 170.35M | 224.16M | 336.58M | 178.64M | Operating Cash Flow |
| 699.97M | 333.32M | 362.61M | 400.80M | 208.98M | Investing Cash Flow |
| -116.78M | -26.95M | -524.41M | -42.88M | -131.22M | Financing Cash Flow |
| -628.81M | -546.05M | 586.00K | -14.80M | -25.13M |
Exelixis Technical Analysis
Positive
38.65
Price Trends
34.72
Positive
33.86
Positive
28.91
Positive
Market Momentum
1.22
Negative
69.90
Neutral
81.87
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXEL, the sentiment is Positive. The current price of 38.65 is above the 20-day moving average (MA) of 35.70, above the 50-day MA of 34.72, and above the 200-day MA of 28.91, indicating a bullish trend. The MACD of 1.22 indicates Negative momentum. The RSI at 69.90 is Neutral, neither overbought nor oversold. The STOCH value of 81.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EXEL.
Exelixis Risk Analysis
Exelixis disclosed 32 risk factors in its most recent earnings report. Exelixis reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Exelixis Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $10.72B | 21.81 | 23.13% | ― | 18.49% | 176.71% | |
70 Outperform | $38.14B | 48.70 | -7.20% | ― | 101.07% | 51.16% | |
60 Neutral | $13.48B | 257.41 | 0.76% | ― | 14.76% | -88.32% | |
55 Neutral | $51.09M | 3.84 | -58.97% | ― | 33.66% | ― | |
52 Neutral | $5.71B | ― | -31.26% | ― | 104.04% | 87.80% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% | |
37 Underperform | $53.61M | ― | 41.08% | ― | -0.55% | 49.85% |
* Healthcare Sector Average
Performance Comparison
EXEL
Exelixis
38.65
16.56
74.97%
INCY
Incyte
69.81
10.78
18.26%
KPTI
Karyopharm Therapeutics
6.12
-16.83
-73.33%
BPMC
Blueprint Medicines
89.92
-2.12
-2.30%
CTMX
CytomX Therapeutics
0.62
-1.94
-75.78%
ARGX
Argenx Se
636.49
247.81
63.76%
Exelixis Earnings Call Summary
Earnings Call Date: Feb 11, 2025 | % Change Since: 17.80% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook for Exelixis with strong growth in its cabozantinib franchise, significant regulatory and pipeline advancements, and a robust financial position. While there are challenges with increased operating expenses and gross to net deductions, the overall trajectory indicates momentum and growth opportunities.Highlights
Strong Performance of Cabozantinib Franchise
The cabozantinib business saw an approximate 11% growth in demand, new starts, and revenue. Fourth quarter U.S. cabo franchise net product revenues grew 20% year-over-year to $515 million, while full year 2024 U.S. cabo franchise net product revenues grew 11% to $1.81 billion.
Regulatory Progress for Cabozantinib
The FDA accepted the sNDA for cabozantinib in pNET and epNET indications with a PDUFA date of April 3, 2025. Detailed final results from the CABINET Phase III pivotal trial were published in the New England Journal of Medicine.
Pipeline Growth and New Trials
Exelixis plans to accelerate the Phase I development of XL309 and file up to three new INDs for XB628, XB064, and XB371 in 2025, with significant data presentations expected at major scientific meetings.
Strong Financial Position
The company reported a GAAP net income of approximately $139.9 million for the fourth quarter and repurchased approximately $656 million of the company's shares in 2024.
Lowlights
Increased Operating Expenses
Total operating expenses for the fourth quarter 2024 were approximately $403 million, driven by higher manufacturing costs for drug development candidates, higher clinical trial and licensing costs, and higher general and administrative costs.
Higher Gross to Net Deductions
The gross to net for the cabozantinib franchise in the fourth quarter 2024 was 26.8%, higher than the previous quarter, due to increased co-pay assistance and Medicare Part D expenses.
Speculation and Misguided Comparisons
There was market speculation comparing zanza to cabo, which the company deemed misguided and a distraction from their zanza development activities.
Company Guidance
During the Exelixis Fourth Quarter and Fiscal Year 2024 Financial Results Conference Call, the company provided robust financial metrics and strategic guidance for 2025. Exelixis reported fourth-quarter 2024 total revenues of approximately $567 million, including $515.2 million from the cabozantinib franchise. In the full year 2024, U.S. cabozantinib franchise net product revenues grew 11% to $1.81 billion. The company outlined its ambitious revenue goals for its key oncology products, targeting $3 billion for cabozantinib by 2030 and $5 billion for zanzalintinib by 2033. Looking ahead to 2025, Exelixis plans to advance its cabozantinib NET indication, with a PDUFA date set for April 3, 2025, and aims to spotlight zanzalintinib as a major oncology franchise opportunity, with several pivotal trial readouts expected in the second half of the year. The company also highlighted its strong balance sheet, with cash and marketable securities totaling approximately $1.75 billion, and its continued commitment to capital allocation through share repurchases and strategic business development to bolster its pipeline.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.