NASDAQ:GMAB is an undervalued gem with solid fundamentals.

Last update: Oct 8, 2024

Uncover the hidden value in GENMAB A/S -SP ADR (NASDAQ:GMAB) as our stock screening tool recommends it as an undervalued choice. NASDAQ:GMAB maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Valuation Assessment of 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 8 out of 10:

Based on the Price/Earnings ratio, GMAB is valued cheaper than 96.48% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 30.72, GMAB is valued a bit cheaper.
Based on the Price/Forward Earnings ratio, GMAB is valued cheaper than 96.48% 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 22.18.
GMAB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GMAB is cheaper than 96.65% 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 97.89% 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 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.

How do we evaluate the Profitability for NASDAQ:GMAB?

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:

With an excellent Return On Assets value of 14.25%, GMAB belongs to the best of the industry, outperforming 98.24% of the companies in the same industry.
GMAB's Return On Equity of 17.77% is amongst the best of the industry. GMAB outperforms 96.83% of its industry peers.
With an excellent Return On Invested Capital value of 13.65%, GMAB belongs to the best of the industry, outperforming 96.65% of the companies in the same industry.
The 3 year average ROIC (13.32%) for GMAB is below the current ROIC(13.65%), indicating increased profibility in the last year.
The Profit Margin of GMAB (29.01%) is better than 98.24% 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's Gross Margin of 96.83% is amongst the best of the industry. GMAB outperforms 97.01% of its industry peers.

How We Gauge Health for NASDAQ:GMAB

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:GMAB, the assigned 7 reflects its health status:

GMAB has an Altman-Z score of 10.13. 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 10.13, GMAB belongs to the top of the industry, outperforming 86.62% of the companies in the same industry.
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 97.71% 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.

Evaluating Growth: NASDAQ:GMAB

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:GMAB boasts a 8 out of 10:

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.
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.
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.
GMAB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.51% yearly.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

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.