While growth is established for NASDAQ:GMAB, the stock's valuation remains reasonable.

Last update: Dec 31, 2024

Discover GENMAB A/S -SP ADR (NASDAQ:GMAB), an undervalued growth gem identified by our stock screener. NASDAQ:GMAB is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

How We Gauge Growth for NASDAQ:GMAB

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:GMAB, the assigned 8 reflects its growth potential:

The Earnings Per Share has grown by an nice 9.53% over the past year.
GMAB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.70% yearly.
The Revenue has grown by 13.57% in the past year. This is quite good.
GMAB shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 40.35% yearly.
Based on estimates for the next years, GMAB will show a very strong growth in Earnings Per Share. The EPS will grow by 23.29% on average per year.
GMAB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.88% yearly.

Valuation Examination for NASDAQ:GMAB

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:GMAB has received a 8 out of 10:

Based on the Price/Earnings ratio, GMAB is valued cheaply inside the industry as 95.72% of the companies are valued more expensively.
GMAB is valuated rather cheaply when we compare the Price/Earnings ratio to 27.18, which is the current average of the S&P500 Index.
GMAB's Price/Forward Earnings ratio is rather cheap when compared to the industry. GMAB is cheaper than 96.08% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.59. GMAB is valued slightly cheaper when compared to this.
Based on the Enterprise Value to EBITDA ratio, GMAB is valued cheaply inside the industry as 97.33% of the companies are valued more expensively.
97.33% of the companies in the same industry are more expensive than GMAB, based on the Price/Free Cash Flow ratio.
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.
GMAB's earnings are expected to grow with 23.55% in the coming years. This may justify a more expensive valuation.

Evaluating Health: 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:

GMAB has an Altman-Z score of 9.60. This indicates that GMAB is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of GMAB (9.60) is better than 85.92% 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.
Looking at the Debt to FCF ratio, with a value of 0.16, GMAB belongs to the top of the industry, outperforming 97.33% of the companies in the same industry.
A Debt/Equity ratio of 0.03 indicates that GMAB is not too dependend on debt financing.
A Current Ratio of 5.03 indicates that GMAB has no problem at all paying its short term obligations.
A Quick Ratio of 5.02 indicates that GMAB has no problem at all paying its short term obligations.

Analyzing Profitability Metrics

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 8 for profitability:

With an excellent Return On Assets value of 14.25%, GMAB belongs to the best of the industry, outperforming 97.50% of the companies in the same industry.
GMAB has a better Return On Equity (17.77%) than 96.79% of its industry peers.
GMAB has a Return On Invested Capital of 13.65%. This is amongst the best in the industry. GMAB outperforms 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.
With an excellent Profit Margin value of 29.01%, GMAB belongs to the best of the industry, outperforming 98.04% of the companies in the same industry.
GMAB has a Operating Margin of 31.65%. This is amongst the best in the industry. GMAB outperforms 98.93% of its industry peers.
With an excellent Gross Margin value of 96.83%, GMAB belongs to the best of the industry, outperforming 96.79% 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.