NASDAQ:GMAB: a strong growth stock preparing for the next leg up?.

Last update: Sep 3, 2024

In this article, we'll take a closer look at GENMAB A/S -SP ADR (NASDAQ:GMAB) as a potential candidate for growth investing. While it's important for investors to conduct their own research, GENMAB A/S -SP ADR has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

Deciphering NASDAQ:GMAB's Growth Rating

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. In the last year, the EPS has been growing by 16.52%, which is quite good.
The Earnings Per Share has been growing by 22.70% on average over the past years. This is a very strong growth
The Revenue has grown by 15.89% 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 23.65% on average per year.
The Revenue is expected to grow by 17.51% on average over the next years. This is quite good.

Health Assessment of NASDAQ:GMAB

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:GMAB has earned a 7 out of 10:

GMAB has an Altman-Z score of 11.54. 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 11.54, GMAB belongs to the top of the industry, outperforming 88.20% of the companies in the same industry.
GMAB has a debt to FCF ratio of 0.16. This is a very positive value and a sign of high solvency as it would only need 0.16 years to pay back of all of its debts.
The Debt to FCF ratio of GMAB (0.16) is better than 97.89% 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.
GMAB has a Quick Ratio of 5.02. This indicates that GMAB is financially healthy and has no problem in meeting its short term obligations.

Understanding NASDAQ:GMAB's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:GMAB, the assigned 8 is a significant indicator of profitability:

GMAB has a better Return On Assets (14.25%) than 98.24% of its industry peers.
With an excellent Return On Equity value of 17.77%, GMAB belongs to the best of the industry, outperforming 97.18% of the companies in the same industry.
GMAB's Return On Invested Capital of 13.65% is amongst the best of the industry. GMAB outperforms 96.65% of its industry peers.
The last Return On Invested Capital (13.65%) for GMAB is above the 3 year average (13.32%), which is a sign of increasing profitability.
GMAB has a Profit Margin of 29.01%. This is amongst the best in the industry. GMAB outperforms 98.06% of its industry peers.
Looking at the Operating Margin, with a value of 31.65%, GMAB belongs to the top of the industry, outperforming 98.77% of the companies in the same industry.
GMAB has a Gross Margin of 96.83%. This is amongst the best in the industry. GMAB outperforms 97.54% of its industry peers.

Looking at the Setup

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:GMAB scores a 8 out of 10:

GMAB has a bad technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 28.35. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 27.75, a Stop Loss order could be placed below this zone.

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

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

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

Keep in mind

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.