When you look at NASDAQ:GMAB, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Last update: Jan 10, 2025

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.

Valuation Analysis for NASDAQ:GMAB

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:GMAB scores a 8 out of 10:

95.32% of the companies in the same industry are more expensive than GMAB, based on the Price/Earnings ratio.
95.68% of the companies in the same industry are more expensive than GMAB, based on the Price/Forward Earnings ratio.
GMAB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.61.
Based on the Enterprise Value to EBITDA ratio, GMAB is valued cheaply inside the industry as 97.12% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GMAB indicates a rather cheap valuation: GMAB is cheaper than 97.12% of the companies listed in the same industry.
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 23.56% in the coming years. This may justify a more expensive valuation.

Profitability Analysis for NASDAQ:GMAB

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:GMAB has earned a 8 out of 10:

Looking at the Return On Assets, with a value of 14.25%, GMAB belongs to the top of the industry, outperforming 97.48% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.77%, GMAB belongs to the top of the industry, outperforming 96.76% of the companies in the same industry.
GMAB has a better Return On Invested Capital (13.65%) than 96.58% 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.
The Profit Margin of GMAB (29.01%) is better than 98.02% of its industry peers.
The Operating Margin of GMAB (31.65%) is better than 98.92% of its industry peers.
GMAB's Gross Margin of 96.83% is amongst the best of the industry. GMAB outperforms 96.76% of its industry peers.

Assessing Health Metrics for 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:

GMAB has an Altman-Z score of 10.21. This indicates that GMAB is financially healthy and has little risk of bankruptcy at the moment.
GMAB's Altman-Z score of 10.21 is amongst the best of the industry. GMAB outperforms 86.13% 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 97.30% 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.

Exploring NASDAQ:GMAB's Growth

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:GMAB boasts a 8 out of 10:

GMAB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.57%, which is quite good.
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.
The Revenue has been growing by 40.35% on average over the past years. This is a very strong growth!
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.

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Our latest full fundamental report of GMAB contains the most current fundamental analsysis.

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.