Investors should take note of NASDAQ:GMAB, a growth stock that remains attractively priced.

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.

Growth Analysis for NASDAQ:GMAB

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:

• Measured over the past years, GMAB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.25% on average per year.
• Looking at the last year, GMAB shows a very strong growth in Revenue. The Revenue has grown by 30.67%.
• The Revenue has been growing by 32.03% 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 22.52% yearly.
• The Revenue is expected to grow by 13.29% on average over the next years. This is quite good.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

A Closer Look at Valuation 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:

• Based on the Price/Earnings ratio, GMAB is valued cheaper than 95.38% of the companies in the same industry.
• When comparing the Price/Earnings ratio of GMAB to the average of the S&P500 Index (30.11), we can say GMAB is valued slightly cheaper.
• Based on the Price/Forward Earnings ratio, GMAB is valued cheaply inside the industry as 96.09% of the companies are valued more expensively.
• GMAB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.58.
• GMAB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GMAB is cheaper than 98.22% of the companies in the same industry.
• 97.87% 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.
• GMAB has a very decent profitability rating, which may justify a higher PE ratio.
• GMAB's earnings are expected to grow with 36.00% in the coming years. This may justify a more expensive valuation.

Evaluating Health: NASDAQ:GMAB

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 8 out of 10:

• An Altman-Z score of 8.62 indicates that GMAB is not in any danger for bankruptcy at the moment.
• The Altman-Z score of GMAB (8.62) is better than 85.44% of its industry peers.
• GMAB has a debt to FCF ratio of 0.14. This is a very positive value and a sign of high solvency as it would only need 0.14 years to pay back of all of its debts.
• The Debt to FCF ratio of GMAB (0.14) is better than 97.16% 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.
• GMAB has a Current Ratio of 5.25. This indicates that GMAB is financially healthy and has no problem in meeting its short term obligations.
• A Quick Ratio of 5.24 indicates that GMAB has no problem at all paying its short term obligations.

Analyzing Profitability Metrics

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:GMAB has achieved a 7:

• With an excellent Return On Assets value of 17.12%, GMAB belongs to the best of the industry, outperforming 97.87% of the companies in the same industry.
• The Return On Equity of GMAB (21.38%) is better than 97.16% of its industry peers.
• GMAB has a Return On Invested Capital of 13.92%. This is amongst the best in the industry. GMAB outperforms 96.98% of its industry peers.
• With an excellent Profit Margin value of 36.44%, GMAB belongs to the best of the industry, outperforming 98.58% of the companies in the same industry.
• GMAB has a Operating Margin of 32.18%. This is amongst the best in the industry. GMAB outperforms 98.93% of its industry peers.
• With an excellent Gross Margin value of 95.42%, GMAB belongs to the best of the industry, outperforming 96.09% of the companies in the same industry.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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.