NASDAQ:GMAB: a strong growth stock preparing for the next leg up?.

In this article, we'll take a closer look at GENMAB A/S -SP ADR (NASDAQ:GMAB) as a potential candidate for growth investing. While it's important for investors to conduct their own research, GENMAB A/S -SP ADR has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

Understanding NASDAQ:GMAB's Growth Score

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 9.53% 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.
• 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.
• The Revenue is expected to grow by 17.88% on average over the next years. This is quite good.

A Closer Look at Health for 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 9.77 indicates that GMAB is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 9.77, GMAB belongs to the best of the industry, outperforming 86.00% of the companies in the same industry.
• 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.
• With an excellent Debt to FCF ratio value of 0.16, GMAB belongs to the best of the industry, outperforming 97.31% of the companies in the same industry.
• 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.

Exploring 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:

• GMAB's Return On Assets of 14.25% is amongst the best of the industry. GMAB outperforms 97.49% of its industry peers.
• With an excellent Return On Equity value of 17.77%, GMAB belongs to the best of the industry, outperforming 96.77% of the companies in the same industry.
• GMAB has a better Return On Invested Capital (13.65%) than 96.59% 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.
• GMAB's Profit Margin of 29.01% is amongst the best of the industry. GMAB outperforms 98.03% of its industry peers.
• GMAB has a Operating Margin of 31.65%. This is amongst the best in the industry. GMAB outperforms 98.92% of its industry peers.
• Looking at the Gross Margin, with a value of 96.83%, GMAB belongs to the top of the industry, outperforming 96.77% of the companies in the same industry.

How does the Setup look for NASDAQ:GMAB

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NASDAQ:GMAB is 8:

GMAB has a bad technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 21.53. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 20.88, a Stop Loss order could be placed below this zone.

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

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

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

Keep in mind

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.