When you look at NASDAQ:GMAB, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Last update: Oct 29, 2024

Our stock screener has spotted GENMAB A/S -SP ADR (NASDAQ:GMAB) as an undervalued stock with solid fundamentals. NASDAQ:GMAB shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Exploring NASDAQ:GMAB's Valuation

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:GMAB has earned a 8 for valuation:

96.61% of the companies in the same industry are more expensive than GMAB, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 31.09, GMAB is valued a bit cheaper.
Based on the Price/Forward Earnings ratio, GMAB is valued cheaper than 96.61% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.57. GMAB is valued slightly cheaper when compared to this.
Based on the Enterprise Value to EBITDA ratio, GMAB is valued cheaper than 97.15% of the companies in the same industry.
GMAB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GMAB is cheaper than 98.04% of the companies in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of GMAB 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.

Profitability Insights: 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 8 out of 10:

GMAB has a better Return On Assets (14.25%) than 97.86% of its industry peers.
GMAB has a Return On Equity of 17.77%. This is amongst the best in the industry. GMAB outperforms 96.61% of its industry peers.
The Return On Invested Capital of GMAB (13.65%) is better than 96.61% 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 98.04% of its industry peers.
Looking at the Operating Margin, with a value of 31.65%, GMAB belongs to the top of the industry, outperforming 98.75% of the companies in the same industry.
With an excellent Gross Margin value of 96.83%, GMAB belongs to the best of the industry, outperforming 96.97% of the companies in the same industry.

Health Analysis for NASDAQ:GMAB

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:GMAB, the assigned 7 for health provides valuable insights:

An Altman-Z score of 10.15 indicates that GMAB is not in any danger for bankruptcy at the moment.
GMAB has a Altman-Z score of 10.15. This is amongst the best in the industry. GMAB outperforms 84.14% 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 better Debt to FCF ratio (0.16) than 97.68% of its industry peers.
A Debt/Equity ratio of 0.03 indicates that GMAB is not too dependend on debt financing.
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

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 grown by an nice 16.52% over the past year.
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 15.89% 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.
GMAB is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.65% yearly.
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.

More Decent Value stocks can be found in our Decent Value 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.