In a market where value is scarce, NASDAQ:GMAB offers a refreshing opportunity with its solid fundamentals.

Our stock screening tool has identified GENMAB A/S -SP ADR (NASDAQ:GMAB) as an undervalued gem with strong fundamentals. NASDAQ:GMAB boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

Deciphering NASDAQ:GMAB's Valuation Rating

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:GMAB boasts a 8 out of 10:

• Based on the Price/Earnings ratio, GMAB is valued cheaply inside the industry as 95.38% of the companies are valued more expensively.
• When comparing the Price/Earnings ratio of GMAB to the average of the S&P500 Index (30.43), 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.
• The average S&P500 Price/Forward Earnings ratio is at 23.78. GMAB is valued slightly cheaper when compared to this.
• 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.
• Based on the Price/Free Cash Flow ratio, GMAB is valued cheaper than 97.87% of the companies in the same industry.
• GMAB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The decent profitability rating of GMAB 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.

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 7 is noteworthy for profitability:

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

Health Analysis for NASDAQ:GMAB

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:GMAB has received a 8 out of 10:

• GMAB has an Altman-Z score of 8.78. This indicates that GMAB is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of GMAB (8.78) is better than 85.79% 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.

ChartMill's Evaluation of Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:GMAB scores 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%.
• Measured over the past years, GMAB shows a very strong growth in Revenue. The Revenue has been growing by 32.03% 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 22.52% yearly.
• Based on estimates for the next years, GMAB will show a quite strong growth in Revenue. The Revenue will grow by 13.17% on average per year.
• 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.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.