Despite its growth, GENMAB A/S -SP ADR (NASDAQ:GMAB) remains within the realm of affordability.

Discover GENMAB A/S -SP ADR (NASDAQ:GMAB), an undervalued growth gem identified by our stock screener. 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.

Assessing Growth Metrics for GMAB

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. GMAB has received a 8 out of 10:

• The Earnings Per Share has grown by an impressive 83.75% over the past year.
• Measured over the past years, GMAB shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.12% 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.
• The Revenue is expected to grow by 11.53% on average over the next years. This is quite good.

Valuation Analysis for 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. GMAB scores a 7 out of 10:

• The Price/Earnings ratio is 10.66, which indicates a very decent valuation of GMAB.
• GMAB's Price/Earnings ratio is rather cheap when compared to the industry. GMAB is cheaper than 97.71% of the companies in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 28.29, GMAB is valued rather cheaply.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of GMAB indicates a rather cheap valuation: GMAB is cheaper than 96.30% of the companies listed in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, GMAB is valued a bit cheaper.
• Based on the Enterprise Value to EBITDA ratio, GMAB is valued cheaply inside the industry as 98.59% of the companies are valued more expensively.
• 97.54% of the companies in the same industry are more expensive than GMAB, based on the Price/Free Cash Flow ratio.
• The decent profitability rating of GMAB may justify a higher PE ratio.

Understanding GMAB's Health

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 GMAB, the assigned 8 reflects its health status:

• GMAB has an Altman-Z score of 7.75. This indicates that GMAB is financially healthy and has little risk of bankruptcy at the moment.
• GMAB has a Altman-Z score of 7.75. This is amongst the best in the industry. GMAB outperforms 86.80% of its industry peers.
• The Debt to FCF ratio of GMAB is 0.14, which is an excellent value as it means it would take GMAB, only 0.14 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of GMAB (0.14) is better than 97.01% of its industry peers.
• A Debt/Equity ratio of 0.03 indicates that GMAB is not too dependend on debt financing.
• 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.

Profitability Insights: 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. GMAB has earned a 7 out of 10:

• GMAB has a better Return On Assets (17.12%) than 97.36% of its industry peers.
• With an excellent Return On Equity value of 21.38%, GMAB belongs to the best of the industry, outperforming 96.83% of the companies in the same industry.
• GMAB's Return On Invested Capital of 13.92% is amongst the best of the industry. GMAB outperforms 96.83% of its industry peers.
• The Profit Margin of GMAB (36.44%) is better than 98.59% of its industry peers.
• Looking at the Operating Margin, with a value of 32.18%, GMAB belongs to the top of the industry, outperforming 98.42% of the companies in the same industry.
• The Gross Margin of GMAB (95.42%) is better than 94.01% 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.

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.