NASDAQ:GMAB is showing good growth, while it is not too expensive.

Last update: May 2, 2024

Discover GENMAB A/S -SP ADR (NASDAQ:GMAB), an undervalued growth gem identified by our stock screener. NASDAQ:GMAB is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Growth Assessment of NASDAQ:GMAB

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:GMAB boasts a 8 out of 10:

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.
Measured over the past years, GMAB shows a very strong growth in Revenue. The Revenue has been growing by 40.35% on average per year.
The Earnings Per Share is expected to grow by 31.70% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 18.76% on average over the next years. This is quite good.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Valuation Assessment of NASDAQ:GMAB

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:GMAB has earned a 6 for valuation:

95.56% 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 cheaply inside the industry as 95.90% of the companies are valued more expensively.
96.25% of the companies in the same industry are more expensive than GMAB, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GMAB is valued cheaper than 97.27% of the companies in the same industry.
GMAB has a very decent profitability rating, which may justify a higher PE ratio.
GMAB's earnings are expected to grow with 28.07% in the coming years. This may justify a more expensive valuation.

A Closer Look at Health for NASDAQ:GMAB

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 23.97. This indicates that GMAB is financially healthy and has little risk of bankruptcy at the moment.
GMAB has a Altman-Z score of 23.97. This is amongst the best in the industry. GMAB outperforms 94.03% 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.
Looking at the Debt to FCF ratio, with a value of 0.11, GMAB belongs to the top of the industry, outperforming 97.44% 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.
GMAB has a better Current ratio (13.34) than 87.37% of its industry peers.
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 87.37% 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 Return On Assets of 12.33%. This is amongst the best in the industry. GMAB outperforms 97.95% of its industry peers.
GMAB has a Return On Equity of 13.77%. This is amongst the best in the industry. GMAB outperforms 96.93% of its industry peers.
GMAB's Return On Invested Capital of 12.63% is amongst the best of the industry. GMAB outperforms 97.44% of its industry peers.
GMAB's Profit Margin of 26.42% is amongst the best of the industry. GMAB outperforms 98.63% of its industry peers.
The Operating Margin of GMAB (32.30%) is better than 98.98% of its industry peers.
GMAB has a better Gross Margin (98.63%) than 98.98% 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

Disclaimer

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.