Is NASDAQ:GMAB on the Verge of a Major Breakout as a Strong Growth Stock?

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether GENMAB A/S -SP ADR (NASDAQ:GMAB) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but GENMAB A/S -SP ADR has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Evaluating Growth: 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 been growing by 22.70% on average over the past years. This is a very strong growth
• Looking at the last year, GMAB shows a quite strong growth in Revenue. The Revenue has grown by 12.87% in the last year.
• 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.
• Based on estimates for the next years, GMAB will show a quite strong growth in Revenue. The Revenue will grow by 18.76% on average per year.
• 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.

A Closer Look at Health for NASDAQ:GMAB

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:GMAB, the assigned 8 reflects its health status:

• GMAB has an Altman-Z score of 25.24. This indicates that GMAB is financially healthy and has little risk of bankruptcy at the moment.
• GMAB's Altman-Z score of 25.24 is amongst the best of the industry. GMAB outperforms 93.71% of its industry peers.
• 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.
• The Debt to FCF ratio of GMAB (0.11) is better than 97.45% of its industry peers.
• 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.
• The Current ratio of GMAB (13.34) is better than 86.39% of its industry peers.
• GMAB has a Quick Ratio of 13.32. This indicates that GMAB is financially healthy and has no problem in meeting its short term obligations.
• The Quick ratio of GMAB (13.32) is better than 86.39% of its industry peers.

Profitability Analysis for NASDAQ:GMAB

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:GMAB, the assigned 7 is a significant indicator of profitability:

• With an excellent Return On Assets value of 12.33%, GMAB belongs to the best of the industry, outperforming 97.96% of the companies in the same industry.
• The Return On Equity of GMAB (13.77%) is better than 96.94% of its industry peers.
• GMAB has a Return On Invested Capital of 12.63%. This is amongst the best in the industry. GMAB outperforms 97.45% of its industry peers.
• With an excellent Profit Margin value of 26.42%, GMAB belongs to the best of the industry, outperforming 98.64% of the companies in the same industry.
• GMAB has a better Operating Margin (32.30%) than 98.81% of its industry peers.
• GMAB has a Gross Margin of 98.63%. This is amongst the best in the industry. GMAB outperforms 98.64% of its industry peers.

Looking at the Setup

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:GMAB scores a 7 out of 10:

GMAB has only a medium technical rating, but it does show a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 30.64. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 30.15, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for GMAB in the last couple of days, which is a good sign.

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

Our latest full fundamental report of GMAB contains the most current fundamental analsysis.

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

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.