While growth is established for NASDAQ:GMAB, the stock's valuation remains reasonable.

Last update: Aug 5, 2024

Uncover the potential of GENMAB A/S -SP ADR (NASDAQ:GMAB), a growth stock that our stock screener found to be reasonably priced. NASDAQ:GMAB is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

Growth Examination for 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:

GMAB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.70% yearly.
The Revenue has grown by 15.87% in the past year. This is quite good.
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
GMAB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.51% yearly.

Looking at the Valuation

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:GMAB was assigned a score of 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 96.69% of the companies listed in the same industry.
GMAB is valuated rather cheaply when we compare the Price/Earnings ratio to 29.18, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio, GMAB is valued cheaply inside the industry as 94.77% of the companies are valued more expensively.
Based on the Enterprise Value to EBITDA ratio, GMAB is valued cheaper than 96.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GMAB is valued cheaply inside the industry as 98.26% of the companies are valued more expensively.
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.
A more expensive valuation may be justified as GMAB's earnings are expected to grow with 24.91% in the coming years.

How do we evaluate the Health for NASDAQ:GMAB?

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:GMAB has achieved a 8 out of 10:

GMAB has an Altman-Z score of 20.50. 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 20.50, GMAB belongs to the top of the industry, outperforming 93.21% 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.
With an excellent Debt to FCF ratio value of 0.19, GMAB belongs to the best of the industry, outperforming 97.74% 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.
With an excellent Current ratio value of 12.46, GMAB belongs to the best of the industry, outperforming 83.62% of the companies in the same industry.
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 83.62% of its industry peers.

Assessing Profitability for NASDAQ:GMAB

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:GMAB has earned a 7 out of 10:

Looking at the Return On Assets, with a value of 14.86%, GMAB belongs to the top of the industry, outperforming 98.78% of the companies in the same industry.
The Return On Equity of GMAB (16.77%) is better than 97.39% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.05%, GMAB belongs to the top of the industry, outperforming 96.86% of the companies in the same industry.
With an excellent Profit Margin value of 30.69%, GMAB belongs to the best of the industry, outperforming 98.61% of the companies in the same industry.
The Operating Margin of GMAB (32.00%) is better than 98.78% of its industry peers.
GMAB's Gross Margin of 91.47% is amongst the best of the industry. GMAB outperforms 93.55% of its industry peers.

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

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

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.