NASDAQ:GMAB appears to be flying under the radar despite its strong fundamentals.

Last update: Dec 19, 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.

Evaluating Valuation: NASDAQ:GMAB

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 8 out of 10:

GMAB's Price/Earnings ratio is rather cheap when compared to the industry. GMAB is cheaper than 95.75% of the companies in the same industry.
When comparing the Price/Earnings ratio of GMAB to the average of the S&P500 Index (27.72), we can say GMAB is valued slightly cheaper.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GMAB indicates a rather cheap valuation: GMAB is cheaper than 96.46% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.64, GMAB is valued a bit 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 cheaply inside the industry as 97.35% of the companies are valued more expensively.
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 23.56% in the coming years.

Understanding NASDAQ:GMAB's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:GMAB, the assigned 8 is noteworthy for profitability:

Looking at the Return On Assets, with a value of 14.25%, GMAB belongs to the top of the industry, outperforming 97.70% of the companies in the same industry.
GMAB has a Return On Equity of 17.77%. This is amongst the best in the industry. GMAB outperforms 96.99% of its industry peers.
The Return On Invested Capital of GMAB (13.65%) is better than 96.81% 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.
With an excellent Profit Margin value of 29.01%, GMAB belongs to the best of the industry, outperforming 98.23% of the companies in the same industry.
GMAB has a better Operating Margin (31.65%) than 99.11% of its industry peers.
GMAB has a Gross Margin of 96.83%. This is amongst the best in the industry. GMAB outperforms 96.81% of its industry peers.

Exploring NASDAQ:GMAB's Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:GMAB has earned a 7 out of 10:

GMAB has an Altman-Z score of 9.34. This indicates that GMAB is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 9.34, GMAB belongs to the best of the industry, outperforming 86.19% 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 better Debt to FCF ratio (0.16) than 97.35% 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.
A Current Ratio of 5.03 indicates that GMAB has no problem at all paying 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.

Deciphering NASDAQ:GMAB's Growth Rating

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:GMAB has earned a 8 for growth:

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.
Looking at the last year, GMAB shows a quite strong growth in Revenue. The Revenue has grown by 13.57% 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.
GMAB is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.30% yearly.
GMAB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.88% yearly.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

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.