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

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 Assessment of 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 7 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.
• Looking at the last year, GMAB shows a quite strong growth in Revenue. The Revenue has grown by 15.89% in the last year.
• GMAB shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 40.35% yearly.
• 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.

What does the Valuation looks like for NASDAQ:GMAB

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:GMAB scores a 6 out of 10:

• Based on the Price/Earnings ratio, GMAB is valued cheaply inside the industry as 95.96% of the companies are valued more expensively.
• Based on the Price/Forward Earnings ratio, GMAB is valued cheaply inside the industry as 95.43% of the companies are valued more expensively.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GMAB indicates a rather cheap valuation: GMAB is cheaper than 96.66% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, GMAB is valued cheaper than 97.89% of the companies in the same industry.
• GMAB has an outstanding 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 24.30% in the coming years.

Looking at the Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:GMAB scores a 7 out of 10:

• GMAB has an Altman-Z score of 11.34. This indicates that GMAB is financially healthy and has little risk of bankruptcy at the moment.
• GMAB has a better Altman-Z score (11.34) than 87.52% of its industry peers.
• The Debt to FCF ratio of GMAB is 0.16, which is an excellent value as it means it would take GMAB, only 0.16 years of fcf income to pay off all of its debts.
• GMAB has a Debt to FCF ratio of 0.16. This is amongst the best in the industry. GMAB outperforms 98.07% of its industry peers.
• 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 5.03. This indicates that GMAB is financially healthy and has no problem in meeting its short term obligations.
• A Quick Ratio of 5.02 indicates that GMAB has no problem at all paying its short term obligations.

Analyzing Profitability Metrics

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

• Looking at the Return On Assets, with a value of 14.25%, GMAB belongs to the top of the industry, outperforming 98.42% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 17.77%, GMAB belongs to the top of the industry, outperforming 97.19% of the companies in the same industry.
• GMAB has a Return On Invested Capital of 13.65%. This is amongst the best in the industry. GMAB outperforms 96.84% of its industry peers.
• The 3 year average ROIC (13.32%) for GMAB is below the current ROIC(13.65%), indicating increased profibility in the last year.
• GMAB has a better Profit Margin (29.01%) than 98.07% of its industry peers.
• With an excellent Operating Margin value of 31.65%, GMAB belongs to the best of the industry, outperforming 98.77% of the companies in the same industry.
• GMAB has a better Gross Margin (96.83%) than 97.72% of its industry peers.

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

Our latest full fundamental report of GMAB contains the most current fundamental analsysis.

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.