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NASDAQ:GMAB is not too expensive for the growth it is showing.

By Mill Chart

Last update: Nov 10, 2023

Our stock screener has spotted GENMAB A/S -SP ADR (NASDAQ:GMAB) as a growth stock which is not overvalued. NASDAQ:GMAB is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

What does the Growth looks like for NASDAQ:GMAB

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:GMAB, the assigned 8 reflects its growth potential:

  • The Earnings Per Share has grown by an nice 19.97% over the past year.
  • GMAB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.32% yearly.
  • The Revenue has grown by 60.29% in the past year. This is a very strong growth!
  • Measured over the past years, GMAB shows a very strong growth in Revenue. The Revenue has been growing by 43.90% on average per year.
  • GMAB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.80% yearly.
  • GMAB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.99% yearly.

Analyzing Valuation Metrics

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. NASDAQ:GMAB scores a 5 out of 10:

  • Based on the Price/Earnings ratio, GMAB is valued cheaper than 95.02% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of GMAB indicates a rather cheap valuation: GMAB is cheaper than 95.85% of the companies listed in the same industry.
  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GMAB indicates a rather cheap valuation: GMAB is cheaper than 95.69% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, GMAB is valued cheaper than 96.35% of the companies in the same industry.
  • GMAB has a very decent profitability rating, which may justify a higher PE ratio.
  • GMAB's earnings are expected to grow with 13.63% in the coming years. This may justify a more expensive valuation.

Health Analysis for NASDAQ:GMAB

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:GMAB scores a 8 out of 10:

  • GMAB has an Altman-Z score of 29.28. This indicates that GMAB is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 29.28, GMAB belongs to the top of the industry, outperforming 96.68% of the companies in the same industry.
  • 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.
  • With an excellent Debt to FCF ratio value of 0.14, GMAB belongs to the best of the industry, outperforming 96.85% of the companies in the same industry.
  • A Debt/Equity ratio of 0.03 indicates that GMAB is not too dependend on debt financing.
  • GMAB has a Current Ratio of 14.93. This indicates that GMAB is financially healthy and has no problem in meeting its short term obligations.
  • GMAB's Current ratio of 14.93 is amongst the best of the industry. GMAB outperforms 86.57% of its industry peers.
  • A Quick Ratio of 14.90 indicates that GMAB has no problem at all paying its short term obligations.
  • GMAB has a better Quick ratio (14.90) than 86.57% of its industry peers.

Profitability Assessment of NASDAQ:GMAB

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:GMAB was assigned a score of 7 for profitability:

  • GMAB's Return On Assets of 14.85% is amongst the best of the industry. GMAB outperforms 98.51% of its industry peers.
  • Looking at the Return On Equity, with a value of 16.52%, GMAB belongs to the top of the industry, outperforming 96.85% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 16.77%, GMAB belongs to the top of the industry, outperforming 98.51% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for GMAB is above the industry average of 12.99%.
  • GMAB has a Profit Margin of 29.02%. This is amongst the best in the industry. GMAB outperforms 97.68% of its industry peers.
  • GMAB's Operating Margin of 39.90% is amongst the best of the industry. GMAB outperforms 98.67% of its industry peers.

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

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

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.

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GENMAB A/S -SP ADR

NASDAQ:GMAB (5/20/2024, 7:00:01 PM)

After market: 29.69 0 (0%)

29.69

-0.29 (-0.97%)

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