In the world of growth stocks, NASDAQ:GMAB shines as a value proposition.

Last update: Dec 5, 2023

GENMAB A/S -SP ADR (NASDAQ:GMAB) was identified as an affordable growth stock by our stock screener. NASDAQ:GMAB is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Evaluating Growth: NASDAQ:GMAB

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:GMAB has received a 7 out of 10:

The Earnings Per Share has been growing by 36.32% on average over the past years. This is a very strong growth
The Revenue has grown by 42.01% in the past year. This is a very strong growth!
Measured over the past years, GMAB shows a very strong growth in Revenue. The Revenue has been growing by 43.90% on average per year.
Based on estimates for the next years, GMAB will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.80% on average per year.
GMAB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.99% yearly.

ChartMill's Evaluation of Valuation

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:GMAB scores a 5 out of 10:

Based on the Price/Earnings ratio, GMAB is valued cheaply inside the industry as 95.02% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GMAB indicates a rather cheap valuation: GMAB is cheaper than 95.85% of the companies listed in the same industry.
Based on the Enterprise Value to EBITDA ratio, GMAB is valued cheaply inside the industry as 95.18% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GMAB is valued cheaper than 95.85% of the companies in the same industry.
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 13.63% in the coming years.

A Closer Look at Health for NASDAQ:GMAB

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:GMAB scores a 8 out of 10:

GMAB has an Altman-Z score of 23.86. This indicates that GMAB is financially healthy and has little risk of bankruptcy at the moment.
GMAB's Altman-Z score of 23.86 is amongst the best of the industry. GMAB outperforms 95.35% of its industry peers.
The Debt to FCF ratio of GMAB is 0.14, which is an excellent value as it means it would take GMAB, only 0.14 years of fcf income to pay off all of its debts.
GMAB has a Debt to FCF ratio of 0.14. This is amongst the best in the industry. GMAB outperforms 97.01% of its industry peers.
A Debt/Equity ratio of 0.02 indicates that GMAB is not too dependend on debt financing.
A Current Ratio of 11.38 indicates that GMAB has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 11.38, GMAB belongs to the top of the industry, outperforming 80.40% of the companies in the same industry.
GMAB has a Quick Ratio of 11.36. This indicates that GMAB is financially healthy and has no problem in meeting its short term obligations.
GMAB has a Quick ratio of 11.36. This is amongst the best in the industry. GMAB outperforms 80.56% of its industry peers.

Assessing 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:

GMAB has a Return On Assets of 12.19%. This is amongst the best in the industry. GMAB outperforms 97.84% of its industry peers.
The Return On Equity of GMAB (13.81%) is better than 96.68% of its industry peers.
The Return On Invested Capital of GMAB (15.04%) is better than 98.17% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GMAB is above the industry average of 12.73%.
Looking at the Profit Margin, with a value of 25.24%, GMAB belongs to the top of the industry, outperforming 97.84% of the companies in the same industry.
The Operating Margin of GMAB (37.10%) is better than 98.50% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Check the latest full fundamental report of GMAB for a complete fundamental analysis.

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.