NASDAQ:GMAB, an undervalued stock with good fundamentals.

Our stock screener has spotted GENMAB A/S -SP ADR (NASDAQ:GMAB) as an undervalued stock with solid fundamentals. NASDAQ:GMAB shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

ChartMill's Evaluation of Valuation

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:GMAB, the assigned 8 reflects its valuation:

• GMAB's Price/Earnings ratio is rather cheap when compared to the industry. GMAB is cheaper than 96.51% of the companies in the same industry.
• GMAB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.36.
• GMAB's Price/Forward Earnings ratio is rather cheap when compared to the industry. GMAB is cheaper than 95.29% of the companies in the same industry.
• GMAB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.16.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GMAB indicates a rather cheap valuation: GMAB is cheaper than 97.56% of the companies listed in the same industry.
• 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.
• GMAB's 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.

Analyzing Profitability Metrics

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:GMAB, the assigned 7 is noteworthy for profitability:

• GMAB's Return On Assets of 14.86% is amongst the best of the industry. GMAB outperforms 98.43% of its industry peers.
• GMAB has a better Return On Equity (16.77%) than 97.38% of its industry peers.
• GMAB's Return On Invested Capital of 13.05% is amongst the best of the industry. GMAB outperforms 97.21% of its industry peers.
• Looking at the Profit Margin, with a value of 30.69%, GMAB belongs to the top of the industry, outperforming 98.60% of the companies in the same industry.
• The Operating Margin of GMAB (32.00%) is better than 98.78% of its industry peers.
• The Gross Margin of GMAB (91.47%) is better than 93.72% of its industry peers.

Health Analysis for NASDAQ:GMAB

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:GMAB was assigned a score of 8 for health:

• GMAB has an Altman-Z score of 18.85. This indicates that GMAB is financially healthy and has little risk of bankruptcy at the moment.
• GMAB has a better Altman-Z score (18.85) than 93.37% of its industry peers.
• The Debt to FCF ratio of GMAB is 0.19, which is an excellent value as it means it would take GMAB, only 0.19 years of fcf income to pay off all of its debts.
• With an excellent Debt to FCF ratio value of 0.19, GMAB belongs to the best of the industry, outperforming 97.38% of the companies in the same industry.
• A Debt/Equity ratio of 0.03 indicates that GMAB is not too dependend on debt financing.
• A Current Ratio of 12.46 indicates that GMAB has no problem at all paying its short term obligations.
• GMAB's Current ratio of 12.46 is amongst the best of the industry. GMAB outperforms 83.77% of its industry peers.
• GMAB has a Quick Ratio of 12.42. This indicates that GMAB is financially healthy and has no problem in meeting its short term obligations.
• The Quick ratio of GMAB (12.42) is better than 83.77% of its industry peers.

Looking at the Growth

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.
• Looking at the last year, GMAB shows a quite strong growth in Revenue. The Revenue has grown by 15.87% 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.
• Based on estimates for the next years, GMAB will show a very strong growth in Earnings Per Share. The EPS will grow by 23.65% 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 17.51% on average per year.

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