Exelixis (EXEL) AI Stock Analysis

• Market Cap: $9.68B
• Dividend Yield: N/A
• Average Volume (3M): 2.75M
• Price to Earnings (P/E): 19.5
• Beta (1Y): 0.32
• Revenue Growth: 18.49%
• EPS Growth: 176.71%
• Country: US
• Employees: 1,147
• Sector: Healthcare
• Sector Strength: 77
• Industry: Biotechnology
• EPS (TTM): 1.77
• Shares Outstanding: 279,881,440
• 10 Day Avg. Volume: 2,432,398
• 30 Day Avg. Volume: 2,754,198
• PEG Ratio: 0.11
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.77
• Price to Cash Flow (P/CF): 10.80
• P/FCF Ratio: 10.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $37.88
• Price Target Upside: 8.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

Exelixis demonstrates strong financial performance with robust revenue growth and cash flow generation. The earnings call reveals positive future guidance, although challenges such as rising expenses persist. Technical indicators support a moderate bullish trend, and the recent corporate initiative aligns with shareholder interests. The stock is fairly valued, lacking a dividend yield.

Positive Factors

Financial Performance

Exelixis recorded diluted net income that exceeded previous forecasts, indicating stronger-than-expected profitability.

Market Opportunity

There is a significant growth opportunity for Exelixis in the NET market, with management expecting a peak of $3B, highlighting the strong potential for expansion.

Regulatory Approval

The FDA approved the sNDA for cabozantinib in previously treated, pancreatic and extra-pancreatic neuroendocrine tumors.

Negative Factors

Market Uncertainty

There is a lack of clarity surrounding the size of the market opportunity in neuroendocrine tumors, which has generated debate even though there is significant unmet need in the space.

Safety Concerns

In the pNET cohort, 46% of patients receiving cabo had a serious adverse event, with 49% dose reduction and 19% permanently discontinued cabo due to an adverse event.

Exelixis Business Overview & Revenue Model

Company Description

Exelixis, Inc., an oncology-focused biotechnology company, focuses on the discovery, development, and commercialization of new medicines to treat cancers in the United States. The company's products include CABOMETYX tablets for the treatment of patients with advanced renal cell carcinoma who received prior anti-angiogenic therapy; and COMETRIQ capsules for the treatment of patients with progressive and metastatic medullary thyroid cancer. Its CABOMETYX and COMETRIQ are derived from cabozantinib, an inhibitor of multiple tyrosine kinases, including MET, AXL, RET, and VEGF receptors. The company also offers COTELLIC, an inhibitor of MEK as a combination regimen to treat advanced melanoma; and MINNEBRO, an oral non-steroidal selective blocker of the mineralocorticoid receptor for the treatment of hypertension in Japan. In addition, it is developing XL092, an oral tyrosine kinase inhibitor that targets VEGF receptors, MET, AXL, MER, and other kinases implicated in growth and spread of cancer; XB002, an antibody-drug conjugate composed of human mAb against tissue factor (TF) for the treatment of advanced solid tumors; XL102, an orally bioavailable cyclin-dependent kinase 7 (CDK7) inhibitor for the treatment of advanced or metastatic solid tumors; and XB002 for the treatment of non-hodgkin's lymphoma. Exelixis, Inc. has research collaborations and license agreements with Ipsen Pharma SAS; Takeda Pharmaceutical Company Ltd.; F. Hoffmann-La Roche Ltd.; Redwood Bioscience, Inc.; R.P. Scherer Technologies, LLC; Catalent Pharma Solutions, Inc.; NBE Therapeutics AG; Aurigene Discovery Technologies Limited; Iconic Therapeutics, Inc.; Invenra, Inc.; StemSynergy Therapeutics, Inc.; Genentech, Inc.; Bristol-Myers Squibb Company; and Daiichi Sankyo Company, Limited. The company was formerly known as Exelixis Pharmaceuticals, Inc. and changed its name to Exelixis, Inc. in February 2000. Exelixis, Inc. was incorporated in 1994 and is headquartered in Alameda, California.

How the Company Makes Money

Exelixis 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 34.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXEL, the sentiment is Negative. The current price of 34.84 is below the 20-day moving average (MA) of 36.73, below the 50-day MA of 35.90, and above the 200-day MA of 30.70, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 46.43 is Neutral, neither overbought nor oversold. The STOCH value of 34.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EXEL.

Exelixis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXEL	79 Outperform	$9.68B	19.50	23.13%	―	18.49%	176.71%
HALO	79 Outperform	$7.38B	17.41	198.42%	―	22.44%	63.47%
BMRN	78 Outperform	$11.50B	27.40	8.05%	―	17.35%	151.40%
CORT	78 Outperform	$7.85B	60.38	23.55%	―	39.94%	32.10%
INCY	66 Neutral	$11.72B	222.31	0.76%	―	14.76%	-88.32%
ASND	53 Neutral	$8.54B	―	357.68%	―	36.09%	22.96%
Sector *	48 Neutral	$6.35B	1.19	-46.87%	2.63%	17.16%	1.34%

Exelixis Corporate Events

Exelixis Launches Special Equity Award Program

On March 28, 2025, Exelixis, Inc.’s Board of Directors approved a Special Equity Award Program designed to incentivize long-term performance and employee retention over a five-year period. The program offers performance-based restricted stock units to all employees, including executives, with vesting contingent on the company’s stock price reaching specific targets and continued employment, aligning employee interests with shareholder value.