GENMAB A/S -SP ADR (NASDAQ:GMAB): a strong growth stock preparing for the next leg up?.

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether GENMAB A/S -SP ADR (NASDAQ:GMAB) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but GENMAB A/S -SP ADR has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

A Closer Look at Growth for 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. GMAB has achieved a 8 out of 10:

• The Earnings Per Share has grown by an impressive 83.75% over the past year.
• GMAB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.12% yearly.
• GMAB shows a strong growth in Revenue. In the last year, 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!
• Based on estimates for the next years, GMAB will show a quite strong growth in Revenue. The Revenue will grow by 11.53% on average per year.

Health Examination for GMAB

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. GMAB has achieved a 8 out of 10:

• An Altman-Z score of 7.87 indicates that GMAB is not in any danger for bankruptcy at the moment.
• GMAB has a better Altman-Z score (7.87) than 86.22% 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.
• GMAB's Debt to FCF ratio of 0.14 is amongst the best of the industry. GMAB outperforms 97.00% 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.
• GMAB has a Quick Ratio of 5.24. This indicates that GMAB is financially healthy and has no problem in meeting its short term obligations.

How do we evaluate the Profitability for 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:

• With an excellent Return On Assets value of 17.12%, GMAB belongs to the best of the industry, outperforming 97.53% of the companies in the same industry.
• With an excellent Return On Equity value of 21.38%, GMAB belongs to the best of the industry, outperforming 96.82% 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 96.82% of the companies in the same industry.
• GMAB's Profit Margin of 36.44% is amongst the best of the industry. GMAB outperforms 98.59% of its industry peers.
• The Operating Margin of GMAB (32.18%) is better than 98.41% of its industry peers.
• GMAB has a better Gross Margin (95.42%) than 94.17% of its industry peers.

Looking at the Setup

ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. GMAB currently holds a 7 as its setup rating, suggesting a particular level of consolidation in the stock.

Although the technical rating is bad, GMAB does present a nice setup opportunity. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 20.64. Right above this resistance zone may be a good entry point. We notice that large players showed an interest for GMAB in the last couple of days, which is a good sign.

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

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

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

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.