Why NASDAQ:GMAB Is a Promising High-Growth Stock in the Midst of Consolidation.

In this article we will dive into GENMAB A/S -SP ADR (NASDAQ:GMAB) as a possible candidate for growth investing. Investors should always do their own research, but we noticed GENMAB A/S -SP ADR showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Growth Assessment of NASDAQ:GMAB

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:GMAB scores a 8 out of 10:

• Measured over the past years, GMAB shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.70% on average per year.
• The Revenue has grown by 12.87% in the past year. This is quite good.
• GMAB shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 40.35% yearly.
• Based on estimates for the next years, GMAB will show a very strong growth in Earnings Per Share. The EPS will grow by 31.70% on average per year.
• GMAB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.74% yearly.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Exploring NASDAQ:GMAB's Health

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:GMAB has earned a 8 out of 10:

• GMAB has an Altman-Z score of 23.63. This indicates that GMAB is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 23.63, GMAB belongs to the best of the industry, outperforming 92.59% of the companies in the same industry.
• The Debt to FCF ratio of GMAB is 0.11, which is an excellent value as it means it would take GMAB, only 0.11 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 0.11, GMAB belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
• GMAB has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
• GMAB has a Current Ratio of 13.34. This indicates that GMAB is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Current ratio, with a value of 13.34, GMAB belongs to the top of the industry, outperforming 85.35% of the companies in the same industry.
• A Quick Ratio of 13.32 indicates that GMAB has no problem at all paying its short term obligations.
• GMAB has a better Quick ratio (13.32) than 85.52% of its industry peers.

Profitability Insights: NASDAQ:GMAB

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:GMAB scores a 7 out of 10:

• GMAB has a better Return On Assets (12.33%) than 97.64% of its industry peers.
• With an excellent Return On Equity value of 13.77%, GMAB belongs to the best of the industry, outperforming 96.80% of the companies in the same industry.
• GMAB has a Return On Invested Capital of 12.63%. This is amongst the best in the industry. GMAB outperforms 97.14% of its industry peers.
• With an excellent Profit Margin value of 26.42%, GMAB belongs to the best of the industry, outperforming 97.81% of the companies in the same industry.
• The Operating Margin of GMAB (32.30%) is better than 98.48% of its industry peers.
• The Gross Margin of GMAB (98.63%) is better than 98.48% of its industry peers.

How do we evaluate the setup for NASDAQ:GMAB?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:GMAB currently holds a 7 as its setup rating, suggesting a particular level of consolidation in the stock.

Although the technical rating is bad, GMAB does present a nice setup opportunity. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 29.29. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 28.28, a Stop Loss order could be placed below this zone.

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

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

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

Disclaimer

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.