Why GENMAB A/S -SP ADR (NASDAQ:GMAB) Is a Promising High-Growth Stock in the Midst of Consolidation.

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if GENMAB A/S -SP ADR (NASDAQ:GMAB) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted GENMAB A/S -SP ADR showing up in our growth with base formation screen, so it may be worth spending some more time on it.

ChartMill's Evaluation of 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:

• 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!
• The Earnings Per Share is expected to grow by 22.52% on average over the next years. This is a very strong growth
• GMAB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.17% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

What does the Health looks like 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 8 reflects its health status:

• GMAB has an Altman-Z score of 9.12. This indicates that GMAB is financially healthy and has little risk of bankruptcy at the moment.
• GMAB has a better Altman-Z score (9.12) than 87.68% 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.
• With an excellent Debt to FCF ratio value of 0.14, GMAB belongs to the best of the industry, outperforming 96.96% 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.
• A Current Ratio of 5.25 indicates that GMAB has no problem at all paying its short term obligations.
• A Quick Ratio of 5.24 indicates that GMAB has no problem at all paying its short term obligations.

Understanding 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 7 out of 10:

• Looking at the Return On Assets, with a value of 17.12%, GMAB belongs to the top of the industry, outperforming 97.50% of the companies in the same industry.
• The Return On Equity of GMAB (21.38%) is better than 97.14% of its industry peers.
• The Return On Invested Capital of GMAB (13.92%) is better than 96.96% of its industry peers.
• The Profit Margin of GMAB (36.44%) is better than 98.39% of its industry peers.
• GMAB's Operating Margin of 32.18% is amongst the best of the industry. GMAB outperforms 98.75% of its industry peers.
• GMAB has a Gross Margin of 95.42%. This is amongst the best in the industry. GMAB outperforms 95.54% of its industry peers.

How do we evaluate the setup for NASDAQ:GMAB?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:GMAB this score is currently 7:

GMAB has only a medium technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 22.97. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 22.95, a Stop Loss order could be placed below this zone.

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

For an up to date full fundamental analysis you can check the fundamental report of GMAB

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