Despite its growth, NASDAQ:GMAB remains within the realm of affordability.

Last update: Jun 21, 2024

Our stock screener has singled out GENMAB A/S -SP ADR (NASDAQ:GMAB) as an attractive growth opportunity. NASDAQ:GMAB is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

Growth Assessment of NASDAQ:GMAB

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:GMAB was assigned a score of 8 for growth:

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 15.87% in the past year. This is quite good.
The Revenue has been growing by 40.35% on average over the past years. This is a very strong growth!
Based on estimates for the next years, GMAB will show a very strong growth in Earnings Per Share. The EPS will grow by 23.50% on average per year.
The Revenue is expected to grow by 17.19% on average over the next years. This is quite good.

Assessing Valuation Metrics for 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 7 for valuation:

Compared to the rest of the industry, the Price/Earnings ratio of GMAB indicates a rather cheap valuation: GMAB is cheaper than 96.16% of the companies listed in the same industry.
GMAB is valuated rather cheaply when we compare the Price/Earnings ratio to 28.57, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio, GMAB is valued cheaper than 94.94% of the companies in the same industry.
97.03% of the companies in the same industry are more expensive than GMAB, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GMAB indicates a rather cheap valuation: GMAB is cheaper than 97.91% of the companies listed in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GMAB has a very decent profitability rating, which may justify a higher PE ratio.
GMAB's earnings are expected to grow with 26.05% in the coming years. This may justify a more expensive valuation.

A Closer Look at Health for NASDAQ:GMAB

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:GMAB, the assigned 8 for health provides valuable insights:

GMAB has an Altman-Z score of 19.38. This indicates that GMAB is financially healthy and has little risk of bankruptcy at the moment.
GMAB has a Altman-Z score of 19.38. This is amongst the best in the industry. GMAB outperforms 93.72% of its industry peers.
GMAB has a debt to FCF ratio of 0.19. This is a very positive value and a sign of high solvency as it would only need 0.19 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.19, GMAB belongs to the top of the industry, outperforming 97.38% 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 12.46. This indicates that GMAB is financially healthy and has no problem in meeting its short term obligations.
GMAB has a Current ratio of 12.46. This is amongst the best in the industry. GMAB outperforms 83.60% of its industry peers.
A Quick Ratio of 12.42 indicates that GMAB has no problem at all paying its short term obligations.
The Quick ratio of GMAB (12.42) is better than 83.60% of its industry peers.

Profitability Assessment of 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's Return On Assets of 14.86% is amongst the best of the industry. GMAB outperforms 98.08% of its industry peers.
GMAB has a better Return On Equity (16.77%) than 97.03% of its industry peers.
GMAB's Return On Invested Capital of 13.05% is amongst the best of the industry. GMAB outperforms 97.03% of its industry peers.
The Profit Margin of GMAB (30.69%) is better than 98.60% of its industry peers.
With an excellent Operating Margin value of 32.00%, GMAB belongs to the best of the industry, outperforming 98.95% of the companies in the same industry.
With an excellent Gross Margin value of 91.47%, GMAB belongs to the best of the industry, outperforming 93.72% of the companies in the same industry.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

Keep in mind

This article should in no way be interpreted as advice. 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.