34.58 USD
+1.11 (+3.32%)
GMAB gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 525 industry peers in the Biotechnology industry. GMAB scores excellent points on both the profitability and health parts. This is a solid base for a good stock. GMAB is not overvalued while it is showing excellent growth. This is an interesting combination. This makes GMAB very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year GMAB was profitable.
- GMAB had a positive operating cash flow in the past year.
- GMAB had positive earnings in each of the past 5 years.
- Each year in the past 5 years GMAB had a positive operating cash flow.
1.2 Ratios
- GMAB's Return On Assets of 21.10% is amongst the best of the industry. GMAB outperforms 97.33% of its industry peers.
- Looking at the Return On Equity, with a value of 25.76%, GMAB belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
- The Return On Invested Capital of GMAB (17.11%) is better than 96.76% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for GMAB is below the industry average of 18.07%.
- The 3 year average ROIC (15.20%) for GMAB is below the current ROIC(17.11%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.1% | ||
| ROE | 25.76% | ||
| ROIC | 17.11% |
ROA(3y)15.92%
ROA(5y)16.24%
ROE(3y)18.48%
ROE(5y)18.5%
ROIC(3y)15.2%
ROIC(5y)16.1%
1.3 Margins
- The Profit Margin of GMAB (41.35%) is better than 97.33% of its industry peers.
- In the last couple of years the Profit Margin of GMAB has declined.
- GMAB has a Operating Margin of 36.85%. This is amongst the best in the industry. GMAB outperforms 97.90% of its industry peers.
- In the last couple of years the Operating Margin of GMAB has declined.
- Looking at the Gross Margin, with a value of 94.27%, GMAB belongs to the top of the industry, outperforming 94.86% of the companies in the same industry.
- GMAB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.85% | ||
| PM (TTM) | 41.35% | ||
| GM | 94.27% |
OM growth 3Y-2.13%
OM growth 5Y-7.73%
PM growth 3Y1.23%
PM growth 5Y-2.03%
GM growth 3Y-1.55%
GM growth 5YN/A
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GMAB is creating value.
- Compared to 1 year ago, GMAB has less shares outstanding
- The number of shares outstanding for GMAB has been reduced compared to 5 years ago.
- The debt/assets ratio for GMAB is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 12.31 indicates that GMAB is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 12.31, GMAB belongs to the best of the industry, outperforming 84.19% of the companies in the same industry.
- GMAB has a debt to FCF ratio of 0.12. This is a very positive value and a sign of high solvency as it would only need 0.12 years to pay back of all of its debts.
- The Debt to FCF ratio of GMAB (0.12) is better than 95.81% of its industry peers.
- A Debt/Equity ratio of 0.02 indicates that GMAB is not too dependend on debt financing.
- GMAB's Debt to Equity ratio of 0.02 is in line compared to the rest of the industry. GMAB outperforms 43.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.12 | ||
| Altman-Z | 12.31 |
ROIC/WACC2.34
WACC7.32%
2.3 Liquidity
- GMAB has a Current Ratio of 6.03. This indicates that GMAB is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of GMAB (6.03) is better than 62.86% of its industry peers.
- A Quick Ratio of 6.01 indicates that GMAB has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 6.01, GMAB is in the better half of the industry, outperforming 63.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.03 | ||
| Quick Ratio | 6.01 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 125.90% 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 28.38% on average per year.
- GMAB shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.66%.
- The Revenue has been growing by 31.16% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)125.9%
EPS 3Y34.24%
EPS 5Y28.38%
EPS Q2Q%121.44%
Revenue 1Y (TTM)24.66%
Revenue growth 3Y32.63%
Revenue growth 5Y31.16%
Sales Q2Q%-81.55%
3.2 Future
- The Earnings Per Share is expected to grow by 9.30% on average over the next years. This is quite good.
- Based on estimates for the next years, GMAB will show a quite strong growth in Revenue. The Revenue will grow by 13.38% on average per year.
EPS Next Y6.42%
EPS Next 2Y-1.8%
EPS Next 3Y6.27%
EPS Next 5Y9.3%
Revenue Next Year22.77%
Revenue Next 2Y19.6%
Revenue Next 3Y17.39%
Revenue Next 5Y13.38%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- GMAB is valuated correctly with a Price/Earnings ratio of 14.65.
- Based on the Price/Earnings ratio, GMAB is valued cheaply inside the industry as 96.38% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of GMAB to the average of the S&P500 Index (27.25), we can say GMAB is valued slightly cheaper.
- The Price/Forward Earnings ratio is 20.31, which indicates a rather expensive current valuation of GMAB.
- 93.90% of the companies in the same industry are more expensive than GMAB, based on the Price/Forward Earnings ratio.
- GMAB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.65 | ||
| Fwd PE | 20.31 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GMAB indicates a rather cheap valuation: GMAB is cheaper than 96.76% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of GMAB indicates a rather cheap valuation: GMAB is cheaper than 96.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.7 | ||
| EV/EBITDA | 11.32 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GMAB does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of GMAB may justify a higher PE ratio.
PEG (NY)2.28
PEG (5Y)0.52
EPS Next 2Y-1.8%
EPS Next 3Y6.27%
5. Dividend
5.1 Amount
- No dividends for GMAB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
GENMAB A/S -SP ADR / GMAB FAQ
What is the ChartMill fundamental rating of GENMAB A/S -SP ADR (GMAB) stock?
ChartMill assigns a fundamental rating of 7 / 10 to GMAB.
What is the valuation status for GMAB stock?
ChartMill assigns a valuation rating of 6 / 10 to GENMAB A/S -SP ADR (GMAB). This can be considered as Fairly Valued.
Can you provide the profitability details for GENMAB A/S -SP ADR?
GENMAB A/S -SP ADR (GMAB) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for GMAB stock?
The Price/Earnings (PE) ratio for GENMAB A/S -SP ADR (GMAB) is 14.65 and the Price/Book (PB) ratio is 3.7.
Can you provide the financial health for GMAB stock?
The financial health rating of GENMAB A/S -SP ADR (GMAB) is 8 / 10.