One-glance verdict
Undervalued
$153.35 our estimate vs market $69.57
Wall Street consensus: $61.57 (-59.9% lower than our fair-value estimate)
55% below our estimate, below the bear case
Fundamentals snapshot
Exelixis, Inc.
EXEL · NMS · Healthcare · Biotechnology
Current price
$69.57
52-week range
$39.71 - $73.69
Market cap
$16.98B
Balance sheet
Healthy
12.90x Strong cushion
Net cash $729.82M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 7.6% last year.
- Reward Returns 44.3% on equity, ahead of 75% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Insider ownership is only 1.9% (peer median: 2.0%).
What this company does
Exelixis, Inc.
Exelixis develops medicines to treat difficult cancers, primarily making money from drugs like CABOMETYX. This matters because their success relies on successfully getting these life-saving treatments to patients and continuing to innovate in cancer care.
How the company got here
Exelixis was founded in 1994 with a vision to use genetics to discover new medicines. The company went public in 2000 and initially focused on a broad range of drug discovery. A major turning point came in 2012 with the approval of its first drug, cabozantinib, for a rare thyroid cancer. This was followed by the approval of CABOMETYX in 2016, which became the company's primary revenue generator and allowed Exelixis to transform into a profitable, commercially focused oncology company. The company's journey reflects an evolution from a genomics startup to a fully integrated biopharmaceutical firm specializing in cancer treatments.
What it actually does
Exelixis is a biopharmaceutical company that discovers, develops, and sells medicines to treat cancer. They focus on creating targeted therapies, which are drugs designed to attack specific cancer cells while minimizing harm to healthy ones. The company's main goal is to help patients with difficult-to-treat cancers live longer and better lives. Exelixis operates primarily in the United States, with partnerships to bring its medicines to other parts of the world.
CABOMETYX and COMETRIQ (cabozantinib)
This is Exelixis's core business and the primary engine for its revenue. CABOMETYX and COMETRIQ are different formulations of the same drug, cabozantinib, which works by inhibiting certain proteins (tyrosine kinases) that help cancer grow and spread. CABOMETYX is used to treat advanced kidney cancer, liver cancer, and certain types of thyroid cancer, while COMETRIQ is specifically for a rare form of thyroid cancer. These medicines are prescribed by doctors to patients undergoing cancer treatment, and they represent the largest portion of Exelixis's sales.
COTELLIC (cobimetinib)
COTELLIC is another cancer medicine developed by Exelixis, often used in combination with other treatments. It works by inhibiting a different protein (MEK) involved in cancer cell growth, particularly in certain types of advanced melanoma. While not as large a revenue contributor as CABOMETYX, COTELLIC represents another important product in Exelixis's portfolio, often used in partnership with other pharmaceutical companies.
Pipeline and Future Growth
Exelixis is actively investing in research and development to discover and create new cancer medicines beyond its current products. This includes developing new drugs like zanzalintinib, which targets multiple kinases involved in cancer, and exploring innovative approaches such as antibody-drug conjugates and bispecific antibodies. The company is also looking to expand the use of its existing drugs into new cancer types and treatment combinations. This focus on a robust pipeline is crucial for Exelixis's long-term strategy to evolve from a company reliant on a single successful drug to a broader oncology innovator.
What management is betting on now
Management is focused on expanding the success of their current medicines, particularly CABOMETYX, by seeking approvals in more cancer types and treatment settings. Simultaneously, they are heavily investing in developing new drugs from their pipeline, with zanzalintinib being a key focus as a potential second major growth driver. Exelixis aims to leverage its strong financial position, including significant cash reserves and ongoing share buyback programs, to fund this research and development, and to explore strategic business development opportunities. The overarching goal is to transition Exelixis into a multi-franchise oncology company, reducing reliance on any single product and creating a more diversified and sustainable business for the future.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q4
$236.29M
FY2026 Q1
$208.49M
FY2026 Q2
$46.16M
FY2026 Q3
$288.84M
FY2026 Q4
$332.36M
FY2027 Q1
$250.34M
FY2027 Q2
$300.93M
FY2027 Q3
$277.47M
Revenue
$658.70M
Net income
$218.09M
Diluted EPS
0.85
Operating cash flow
$279.96M
Free cash flow
$277.47M
Fetching…
Sources
Revenue
$628.69M
Net income
$212.05M
Diluted EPS
0.82
Operating cash flow
$307.74M
Free cash flow
$300.93M
Fetching…
Sources
Revenue
$610.81M
Net income
$210.47M
Diluted EPS
0.79
Operating cash flow
$251.84M
Free cash flow
$250.34M
Fetching…
Sources
Revenue
$598.66M
Net income
$244.53M
Diluted EPS
0.89
Operating cash flow
$333.51M
Free cash flow
$332.36M
Fetching…
Sources
Revenue
$597.75M
Net income
$193.58M
Diluted EPS
0.69
Operating cash flow
$290.32M
Free cash flow
$288.84M
Fetching…
Sources
Revenue
$568.26M
Net income
$184.85M
Diluted EPS
0.65
Operating cash flow
$48.99M
Free cash flow
$46.16M
Fetching…
Sources
Revenue
$555.45M
Net income
$159.62M
Diluted EPS
0.55
Operating cash flow
$211.44M
Free cash flow
$208.49M
Fetching…
Sources
Revenue
$566.75M
Net income
$139.86M
Diluted EPS
0.47
Operating cash flow
$240.26M
Free cash flow
$236.29M
Fetching…
Sources
Is it cheap or expensive?
Fair value $153.35 vs current price $69.57
Wall Street consensus is the average analyst price target: $61.57 (-59.9% lower than our fair-value estimate).
Our most-likely fair value is $153.35 a share — about 120.4% above today's price of $69.57, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $729.8M - more cash than debt. Interest coverage 12.9x.
Net debt
$-729.82M
Interest coverage
12.90x
Exelixis, Inc.'s profit covers its interest bill about 12.9 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
EXEL
BASELINE
Exelixis, Inc.
Total debt $162.20M Interest coverage 12.90x This is the baseline the peer rows are being compared against.
Total debt $4.19B Interest coverage 37.57x +191% vs EXEL Carries about 2.9x more debt cushion than EXEL.
Total debt $5.65B Interest coverage 2.65x -79% vs EXEL Carries about 4.9x less debt cushion than EXEL.
Total debt $3.38B Interest coverage -2.82x -100% vs EXEL This peer has almost no interest-payment cushion compared with EXEL.
Total debt $451.80M Interest coverage 5.03x -61% vs EXEL Carries about 2.6x less debt cushion than EXEL.
What you should know
The case for and against EXEL
3 Rewards
1 Risk
Rewards
-
Revenue grew 7.6% last year.
-
Returns 44.3% on equity, ahead of 75% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Insider ownership is only 1.9% (peer median: 2.0%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
20.83x
Forward P/E
16.28x
P/B
9.28x
P/S
6.80x
EV/EBITDA
15.74x
PEG ratio
2.56x
Profitability
How much profit each dollar creates
Gross margin
96.3%
Operating margin
40.8%
Net margin
35.4%
ROE
44.3%
ROA
23.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.09x
Current ratio
3.21x
Quick ratio
2.99x
Total debt
$162.20M
Total cash
$892.02M
Growth
How the business has been compounding
Revenue TTM
$2.50B
Revenue 5Y CAGR
12.8%
EPS TTM
3.34
EPS 5Y CAGR
70.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.17B
Free CF TTM
$875.84M
FCF margin
35.1%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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