Looking for growth without the hefty price tag? Consider NASDAQ:GMAB.

Last update: Dec 10, 2024

Take a closer look at GENMAB A/S -SP ADR (NASDAQ:GMAB), an affordable growth stock uncovered by our stock screener. NASDAQ:GMAB boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Evaluating Growth: NASDAQ:GMAB

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:GMAB has received a 8 out of 10:

The Earnings Per Share has grown by an nice 9.57% 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
GMAB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.57%.
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.

Evaluating Valuation: NASDAQ:GMAB

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:GMAB was assigned a score of 8 for valuation:

GMAB's Price/Earnings ratio is rather cheap when compared to the industry. GMAB is cheaper than 95.58% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.37. GMAB is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio, GMAB is valued cheaply inside the industry as 96.29% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of GMAB to the average of the S&P500 Index (23.84), we can say GMAB is valued slightly cheaper.
Based on the Enterprise Value to EBITDA ratio, GMAB is valued cheaper than 97.35% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GMAB is valued cheaper than 97.53% of the companies 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.
A more expensive valuation may be justified as GMAB's earnings are expected to grow with 23.56% in the coming years.

Evaluating Health: 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 9.98 indicates that GMAB is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.98, GMAB belongs to the top of the industry, outperforming 84.28% 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.
GMAB has a Debt to FCF ratio of 0.16. This is amongst the best in the industry. GMAB outperforms 97.53% 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.

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.
With an excellent Return On Equity value of 17.77%, GMAB belongs to the best of the industry, outperforming 97.17% of the companies in the same industry.
GMAB has a Return On Invested Capital of 13.65%. This is amongst the best in the industry. GMAB outperforms 96.82% 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.
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.
The Operating Margin of GMAB (31.65%) is better than 99.12% of its industry peers.
With an excellent Gross Margin value of 96.83%, GMAB belongs to the best of the industry, outperforming 96.82% of the companies in the same industry.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Check the latest full fundamental report of GMAB for a complete fundamental analysis.

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.