Skip to main content

EXEL STOCK WRITE UP


EXEL (EXELISIS INC)

  • P/E: 800
  • GAAP DILUTED YEAR-OVER-YEAR EPS GROWTH LAST QUARTER: $.31
  • SECTOR: HEALTH TECHNOLOGY
  • ASSETS-LIABILITIES: 1.24
  • DIVIDEND: none
Exilixis is a pharmaceutical company specializing in cancer drugs. The company is up already over 60% YTD. It is heavily owned by the major institutions.
In each of the last 4 quarters, EXEL has beat Wall Street expectations, according to Estimize. The last two quarters have been profitable, and the company has set its expectations for profitable quarters in the future. Previously, the company posted consistent losses. Revenue increased approximately 550% on a year-over-year basis, while collaborative revenue doubled. EXEL has partnerships with Roche and GlaxoSmithKline. Cabometyx, a rectal cancer drug, is its largest revenue source in the latest quarter and most recent drug launch for the company. Exelixis announced that their R&D budget decreased due to decreased costs in one of their drug studies, although the company does have several drugs in its pipeline. Administrative costs were also decreased marginally. Exelixis also has four times as much cash and cash equivalents as it does debt, despite posting losses consistently in the past.
The exorbitant P/E of 800 is calculated based on significant losses realized in FY 2016. Should EXEL hold true to its own estimates or exceed them, it would trade at 133 P/E at the current price. This is still a high P/E multiple comparable to the S&P average, but considering that many biotech companies are not profitable, it is a cheap stock in context.
Michael Morrissey, the CEO, has been in place since 7/2010. He has been with Exelixis since 2000 after working in pharmaceuticals since 1986. He is also an inventor on 68 US patents. Exelixis' largest competitors for cabometyx are produced by Pfizer and Novartis. While Pfizer's market share in the space dropped recently, Exilixis' market share rose. Exelixis is partnering with Pfizer and Novartis competitors Bristol Myers Squibb and Genentech to expand the utilization of cabometyx, thereby taking further market share for the drug.
Exelixis has a recently launched drug for which it is leveraging market competition to gain market share. The company has posted profitable quarters of late, has a clean balance sheet, and has more drugs in the pipeline. It has high institutional ownership, but only 6 analysts have submitted forecasts, according to CNN money. The company took a huge stride up in share price 6/21/17, along with the entire biotech space.





Labels:

Comments

Post a Comment

Popular posts from this blog

CTAS STOCK WRITE UP

CTAS (CINTAS CORPORATION) P/E: 26.8 GAAP DILUTED YEAR-OVER-YEAR EPS GROWTH LAST QUARTER: $.02 SECTOR: CONSUMER SERVICES ASSETS-LIABILITIES: 2.09 DIVIDEND: 1.06% CTAS is a company providing uniforms to major companies. They report 7/20/17 after the market close. The company is profitable, and has acquired smaller businesses to grow its revenue, while selling a paper-shredding company it had previously acquired. The company has more cash than debt. Inventories increased by 9%, and revenue increased by 5.3%. Income before taxes grew 2.5%, and $642,000 in losses from discontinued operations and a $9 million acquisition expense reduced the profit improvement to just under 2%. The majority of revenue is derived from uniform rental services. According to wikinvest, CTAS has 30% of market share for uniform rentals due to its commitment to providing specialized products to fit customer needs. Cintas was founded as The Acme Industrial Laundry Company in 19...
5 comments
Read more

PXD STOCK WRITE UP

 PXD (PIONEER NATURAL RESOURCES) P/E: N/A GAAP DILUTED Y-O-Y EPS GROWTH LAST QUARTER: $.67 SECTOR: ENERGY MINERALS ASSETS-LIABILITIES: 1.58 DIVIDEND: .04% Pioneer Natural Resources has recently made the jaw-dropping switch from negative EPS to positive with its last quarter. Situated in the largest oil-producing region in the US, the company is utilizing its good fortune to produce profits. The company has a good balance sheet, a wealth of resources, and a business model which has afforded it growth. This last quarter does not mark the first occasion on which Pioneer has posted a profit. In 2014, and 2012, Pioneer posted a positive EPS for the full year. While the 2016 oil and gas revenues have grown from 2015, the 2014 and 2012 levels were higher. The company's revenue from oil and gas is largely based on market prices. In order to mitigate the market volatility, Pioneer has made efforts to reduce their cost of production, according to their earnin...
1 comment
Read more

MHK STOCK WRITE UP

MHK (MOHAWK INDUSTRIES) P/E: 18.6 GAAP DILUTED EPS Y-O-Y GROWTH LAST QUARTER: $.44 SECTOR: CONSUMER DURABLES ASSETS-LIABILITIES: 2.312 DIVIDEND: none Mohawk industries is a stock you probably have not heard of, unless you are a DIY enthusiast or work in homebuilding. Mohawk is a supplier of carpet, wall tiles, and laminate. They have posted consistent revenue increases over the last 5 years. In 2016, the company spent a record amount on capital investing in order to continue the growth of its business, and plans to expand on that strategy in 2017. The company is dedicating itself to expansion of manufacturing capacity and development of new products, rather than acquisitions. This capital expenditure has not slowed the company's growth, however, as its operating income margin has also increased over the last 5 years. Jeffrey Lorberbaum, the company's CEO, is the son of the owners of a flooring company which was acquired by Mohawk. Lorberbaum...
Post a Comment
Read more