Investors should take note of NASDAQ:GMAB, a growth stock that remains attractively priced.

Last update: Jul 15, 2024

Consider GENMAB A/S -SP ADR (NASDAQ:GMAB) as an affordable growth stock, identified by our stock screening tool. NASDAQ:GMAB is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Analyzing Growth Metrics

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:

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 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.
The Earnings Per Share is expected to grow by 23.65% on average over the next years. This is a very strong growth
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.

Valuation Insights: NASDAQ:GMAB

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:GMAB has received a 7 out of 10:

96.67% of the companies in the same industry are more expensive than GMAB, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.16. GMAB is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio, GMAB is valued cheaply inside the industry as 95.27% of the companies are valued more expensively.
GMAB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GMAB is cheaper than 97.37% of the companies 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 98.07% 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.
The decent profitability rating of GMAB 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.

What does the Health looks like 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 19.79. This indicates that GMAB is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 19.79, GMAB belongs to the top of the industry, outperforming 92.29% of the companies in the same industry.
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 97.55% 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 better Current ratio (12.46) than 83.54% 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.
GMAB has a Quick ratio of 12.42. This is amongst the best in the industry. GMAB outperforms 83.54% of its industry peers.

Profitability Examination for 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 (14.86%) than 98.60% of its industry peers.
Looking at the Return On Equity, with a value of 16.77%, GMAB belongs to the top of the industry, outperforming 97.37% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.05%, GMAB belongs to the top of the industry, outperforming 97.20% of the companies in the same industry.
GMAB's Profit Margin of 30.69% is amongst the best of the industry. GMAB outperforms 98.60% of its industry peers.
GMAB's Operating Margin of 32.00% is amongst the best of the industry. GMAB outperforms 98.77% of its industry peers.
The Gross Margin of GMAB (91.47%) is better than 93.70% of its industry peers.

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

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.