For those who appreciate value investing, NASDAQ:GMAB is a compelling option with its solid fundamentals.

Last update: Nov 25, 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.

Deciphering NASDAQ:GMAB's Valuation Rating

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:GMAB boasts a 8 out of 10:

Based on the Price/Earnings ratio, GMAB is valued cheaper than 95.94% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.29. GMAB is valued slightly cheaper when compared to this.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GMAB indicates a rather cheap valuation: GMAB is cheaper than 96.30% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.01. GMAB is valued slightly cheaper when compared to this.
Based on the Enterprise Value to EBITDA ratio, GMAB is valued cheaper than 97.35% 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 97.18% 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.
The excellent 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.

Looking at the 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:

The Return On Assets of GMAB (14.25%) is better than 97.88% of its industry peers.
GMAB has a better Return On Equity (17.77%) than 97.18% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.65%, GMAB belongs to the top 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.
With an excellent Profit Margin value of 29.01%, GMAB belongs to the best of the industry, outperforming 98.41% of the companies in the same industry.
GMAB has a better Operating Margin (31.65%) than 98.94% of its industry peers.
With an excellent Gross Margin value of 96.83%, GMAB belongs to the best of the industry, outperforming 96.83% of the companies in the same industry.

Health Insights: NASDAQ:GMAB

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:GMAB was assigned a score of 7 for health:

An Altman-Z score of 9.57 indicates that GMAB is not in any danger for bankruptcy at the moment.
GMAB has a better Altman-Z score (9.57) than 85.19% 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.
The Debt to FCF ratio of GMAB (0.16) is better than 97.35% 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.

Assessing Growth Metrics for NASDAQ:GMAB

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:GMAB has achieved a 8 out of 10:

The Earnings Per Share has grown by an nice 9.57% over the past year.
Measured over the past years, GMAB shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.70% on average per year.
GMAB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.57%.
GMAB shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 40.35% yearly.
GMAB is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.65% yearly.
The Revenue is expected to grow by 17.51% on average over the next years. This is quite good.

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