While growth is established for NASDAQ:GMAB, the stock's valuation remains reasonable.

Last update: Oct 20, 2023

Take a closer look at GENMAB A/S -SP ADR (NASDAQ:GMAB), an affordable growth stock uncovered by our stock screener. NASDAQ:GMAB boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Growth Insights: NASDAQ:GMAB

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:GMAB, the assigned 8 reflects its growth potential:

The Earnings Per Share has grown by an nice 19.97% over the past year.
The Earnings Per Share has been growing by 36.32% on average over the past years. This is a very strong growth
GMAB shows a strong growth in Revenue. In the last year, the Revenue has grown by 60.29%.
GMAB shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 43.90% yearly.
Based on estimates for the next years, GMAB will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.02% on average per year.
Based on estimates for the next years, GMAB will show a quite strong growth in Revenue. The Revenue will grow by 16.75% on average per year.

Looking at the Valuation

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:GMAB, the assigned 5 reflects its valuation:

95.19% of the companies in the same industry are more expensive than GMAB, based on the Price/Earnings ratio.
Based on the Price/Forward Earnings ratio, GMAB is valued cheaper than 95.85% of the companies in the same industry.
GMAB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GMAB is cheaper than 96.19% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GMAB is valued cheaply inside the industry as 96.85% of the companies are valued more expensively.
GMAB has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as GMAB's earnings are expected to grow with 12.69% in the coming years.

Evaluating Health: NASDAQ:GMAB

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:GMAB was assigned a score of 8 for health:

An Altman-Z score of 27.56 indicates that GMAB is not in any danger for bankruptcy at the moment.
GMAB's Altman-Z score of 27.56 is amongst the best of the industry. GMAB outperforms 96.85% of its industry peers.
GMAB has a debt to FCF ratio of 0.14. This is a very positive value and a sign of high solvency as it would only need 0.14 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.14, GMAB belongs to the top of the industry, outperforming 96.85% of the companies in the same industry.
GMAB has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
GMAB has a Current Ratio of 14.93. This indicates that GMAB is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 14.93, GMAB belongs to the best of the industry, outperforming 86.24% of the companies in the same industry.
A Quick Ratio of 14.90 indicates that GMAB has no problem at all paying its short term obligations.
The Quick ratio of GMAB (14.90) is better than 86.24% of its industry peers.

How do we evaluate the Profitability for NASDAQ:GMAB?

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:GMAB has achieved a 7:

With an excellent Return On Assets value of 14.85%, GMAB belongs to the best of the industry, outperforming 98.18% of the companies in the same industry.
The Return On Equity of GMAB (16.52%) is better than 96.52% of its industry peers.
With an excellent Return On Invested Capital value of 16.77%, GMAB belongs to the best of the industry, outperforming 98.67% of the companies in the same industry.
GMAB had an Average Return On Invested Capital over the past 3 years of 17.24%. This is significantly above the industry average of 12.00%.
The Profit Margin of GMAB (29.02%) is better than 97.18% of its industry peers.
The Operating Margin of GMAB (39.90%) is better than 98.67% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of GMAB

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.