Don't overlook NASDAQ:GMAB—a stock with solid growth prospects and a reasonable valuation.

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.

A Closer Look at Growth for NASDAQ:GMAB

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.
• GMAB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.70% yearly.
• GMAB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.57%.
• Measured over the past years, GMAB shows a very strong growth in Revenue. The Revenue has been growing by 40.35% on average per year.
• GMAB is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.97% yearly.
• The Revenue is expected to grow by 18.31% on average over the next years. This is quite good.

Assessing Valuation for 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 95.75% of the companies in the same industry.
• The average S&P500 Price/Earnings ratio is at 27.94. GMAB is valued slightly cheaper when compared to this.
• GMAB's Price/Forward 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/Forward Earnings ratio of GMAB to the average of the S&P500 Index (24.11), we can say GMAB is valued slightly cheaper.
• Based on the Enterprise Value to EBITDA ratio, GMAB is valued cheaply inside the industry as 97.35% of the companies are valued more expensively.
• GMAB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GMAB is cheaper than 97.35% of the companies in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• GMAB has an outstanding profitability rating, which 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.

Health Insights: NASDAQ:GMAB

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:GMAB has earned a 7 out of 10:

• An Altman-Z score of 9.70 indicates that GMAB is not in any danger for bankruptcy at the moment.
• GMAB's Altman-Z score of 9.70 is amongst the best of the industry. GMAB outperforms 86.02% 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.
• The Debt to FCF ratio of GMAB (0.16) is better than 97.35% of its industry peers.
• A Debt/Equity ratio of 0.03 indicates that GMAB is not too dependend on debt financing.
• 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 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:

• The Return On Assets of GMAB (14.25%) is better than 97.52% of its industry peers.
• GMAB has a Return On Equity of 17.77%. This is amongst the best in the industry. GMAB outperforms 96.81% of its industry peers.
• GMAB's Return On Invested Capital of 13.65% is amongst the best of the industry. GMAB outperforms 96.64% 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.
• GMAB's Profit Margin of 29.01% is amongst the best of the industry. GMAB outperforms 98.05% of its industry peers.
• With an excellent Operating Margin value of 31.65%, GMAB belongs to the best of the industry, outperforming 98.94% of the companies in the same industry.
• The Gross Margin of GMAB (96.83%) is better than 96.81% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.