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Investors seeking growth at a reasonable cost should explore NASDAQ:GMAB.

By Mill Chart

Last update: Jan 18, 2024

Our stock screener has singled out GENMAB A/S -SP ADR (NASDAQ:GMAB) as an attractive growth opportunity. NASDAQ:GMAB is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

Understanding NASDAQ:GMAB's Growth Score

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:GMAB scores a 7 out of 10:

  • The Earnings Per Share has been growing by 36.32% on average over the past years. This is a very strong growth
  • The Revenue has grown by 42.01% in the past year. This is a very strong growth!
  • GMAB shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 43.90% yearly.
  • GMAB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.39% yearly.
  • GMAB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.91% yearly.

Evaluating Valuation: NASDAQ:GMAB

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:GMAB has earned a 5 for valuation:

  • 95.79% of the companies in the same industry are more expensive than GMAB, based on the Price/Earnings ratio.
  • 96.97% of the companies in the same industry are more expensive than GMAB, based on the Price/Forward Earnings ratio.
  • GMAB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GMAB is cheaper than 95.96% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, GMAB is valued cheaper than 96.80% of the companies in the same industry.
  • GMAB has a very decent profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as GMAB's earnings are expected to grow with 15.11% in the coming years.

Understanding NASDAQ: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 NASDAQ:GMAB, the assigned 8 reflects its health status:

  • An Altman-Z score of 21.82 indicates that GMAB is not in any danger for bankruptcy at the moment.
  • GMAB has a Altman-Z score of 21.82. This is amongst the best in the industry. GMAB outperforms 93.94% 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.
  • Looking at the Debt to FCF ratio, with a value of 0.14, GMAB belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
  • GMAB has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
  • Although GMAB does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
  • GMAB has a Current Ratio of 11.38. This indicates that GMAB is financially healthy and has no problem in meeting its short term obligations.
  • GMAB has a better Current ratio (11.38) than 80.30% of its industry peers.
  • GMAB has a Quick Ratio of 11.36. This indicates that GMAB is financially healthy and has no problem in meeting its short term obligations.
  • GMAB has a better Quick ratio (11.36) than 80.47% of its industry peers.

How do we evaluate the Profitability for NASDAQ:GMAB?

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:GMAB has achieved a 7:

  • GMAB has a Return On Assets of 12.19%. This is amongst the best in the industry. GMAB outperforms 97.98% of its industry peers.
  • The Return On Equity of GMAB (13.81%) is better than 96.80% of its industry peers.
  • The Return On Invested Capital of GMAB (15.04%) is better than 98.15% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for GMAB is above the industry average of 13.44%.
  • The Profit Margin of GMAB (25.24%) is better than 97.98% of its industry peers.
  • Looking at the Operating Margin, with a value of 37.10%, GMAB belongs to the top of the industry, outperforming 98.65% of the companies in the same industry.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

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GENMAB A/S -SP ADR

NASDAQ:GMAB (5/17/2024, 7:02:01 PM)

After market: 29.98 0 (0%)

29.98

+0.33 (+1.11%)

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