NASDAQ:GMAB stands out as a growth opportunity that won't break the bank.

Last update: Nov 18, 2024

Our stock screener has singled out GENMAB A/S -SP ADR (NASDAQ:GMAB) as an attractive growth opportunity. NASDAQ:GMAB is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

ChartMill's Evaluation of Growth

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 7 out of 10:

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 13.57% 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
The Revenue is expected to grow by 17.51% on average over the next years. This is quite good.

ChartMill's Evaluation of Valuation

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:GMAB has achieved a 7 out of 10:

95.19% of the companies in the same industry are more expensive than GMAB, based on the Price/Earnings ratio.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GMAB indicates a rather cheap valuation: GMAB is cheaper than 95.90% of the companies listed in the same industry.
GMAB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.40.
Based on the Enterprise Value to EBITDA ratio, GMAB is valued cheaper than 97.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GMAB is valued cheaply inside the industry as 97.33% 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.
The decent profitability rating of GMAB may justify a higher PE ratio.
GMAB's earnings are expected to grow with 23.56% in the coming years. This may justify a more expensive valuation.

Health Examination 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:

An Altman-Z score of 9.44 indicates that GMAB is not in any danger for bankruptcy at the moment.
GMAB has a Altman-Z score of 9.44. This is amongst the best in the industry. GMAB outperforms 85.74% of its industry peers.
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.
GMAB has a better Debt to FCF ratio (0.16) than 97.15% 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.

Profitability Insights: 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 7 for profitability:

GMAB's Return On Assets of 14.25% is amongst the best of the industry. GMAB outperforms 97.50% of its industry peers.
Looking at the Return On Equity, with a value of 17.77%, GMAB belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
GMAB has a better Return On Invested Capital (13.65%) than 96.26% 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 98.22% of its industry peers.
With an excellent Operating Margin value of 31.65%, GMAB belongs to the best of the industry, outperforming 98.75% 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 96.61% 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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.