EXELExelixis, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (1.5×), margins widening, and elite returns on assets.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 39% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is EXEL?
Exelixis, Inc. earns 76% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 67 points above what the capital costs: growth creates value
- Operating margin
- 40%
Operating margin · Biotechnology median −82% · 12 months to Q2 2026
- Cash conversion
- 1.47×
Cash conversion · 1.42× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −8.7%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 11% |
| FY2021 | 20% |
| FY2022 | 13% |
| FY2023 | 9.3% |
| FY2024 | 28% |
| FY2025 | 38% |
Details›
- Gross margin12 months to Q2 2026
- 96%
- Operating margin12 months to Q2 2026
- 40%
- Net margin12 months to Q2 2026
- 35%
- Free cash flow margin
- 48%
- R&D as % of revenue
- 34%
- Revenue, trailing twelve months
- $2.44B
- Free cash flow, trailing twelve months
- $1.17B
- Net income, trailing twelve months
- $861M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 76%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from EXEL and who it buys from, as the companies report it.
- CORCencora22%
Share of revenue · FY2025 10-K
- MCKMcKesson Corporation19%
Share of revenue · FY2025 10-K
- CVSCVS Health15%
Share of revenue · FY2025 10-K
- CICigna12%
Share of revenue · FY2025 10-K
- UNHUnitedHealth Group10%
Share of revenue · FY2025 10-K
- Ipsen Pharma SAS7.0%
Share of revenue · FY2025 10-K
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; EXEL’s own figures are from its FY2025 10-K. Smaller customers and suppliers go unreported.