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Investors should take note of NASDAQ:GMAB, a growth stock that remains attractively priced.

By Mill Chart

Last update: Feb 8, 2024

GENMAB A/S -SP ADR (NASDAQ:GMAB) has caught the eye of our stock screener as an affordable growth stock. NASDAQ:GMAB is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

Unpacking NASDAQ:GMAB's Growth Rating

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:GMAB boasts a 8 out of 10:

  • Measured over the past years, GMAB shows a very strong growth in Earnings Per Share. The EPS has been growing by 36.32% on average per year.
  • GMAB shows a strong growth in Revenue. In the last year, the Revenue has grown by 42.01%.
  • GMAB shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 43.90% yearly.
  • The Earnings Per Share is expected to grow by 19.39% on average over the next years. This is quite good.
  • Based on estimates for the next years, GMAB will show a very strong growth in Revenue. The Revenue will grow by 73.04% on average per year.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Understanding NASDAQ:GMAB's Valuation Score

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:GMAB boasts a 5 out of 10:

  • Compared to the rest of the industry, the Price/Earnings ratio of GMAB indicates a rather cheap valuation: GMAB is cheaper than 95.76% of the companies listed in the same industry.
  • GMAB's Price/Forward Earnings ratio is rather cheap when compared to the industry. GMAB is cheaper than 96.27% of the companies in the same industry.
  • Based on the Enterprise Value to EBITDA ratio, GMAB is valued cheaply inside the industry as 96.27% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of GMAB indicates a rather cheap valuation: GMAB is cheaper than 96.44% of the companies listed in the same industry.
  • The decent profitability rating of GMAB may justify a higher PE ratio.
  • GMAB's earnings are expected to grow with 12.29% in the coming years. This may justify a more expensive valuation.

Health Assessment of NASDAQ:GMAB

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:GMAB was assigned a score of 8 for health:

  • GMAB has an Altman-Z score of 21.22. This indicates that GMAB is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 21.22, GMAB belongs to the best of the industry, outperforming 93.56% of the companies in the same industry.
  • GMAB has a debt to FCF ratio of 0.14. This is a very positive value and a sign of high solvency as it would only need 0.14 years to pay back of all of its debts.
  • GMAB has a better Debt to FCF ratio (0.14) than 97.12% of its industry peers.
  • 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.
  • A Current Ratio of 11.38 indicates that GMAB has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 11.38, GMAB belongs to the top of the industry, outperforming 80.17% of the companies in the same industry.
  • A Quick Ratio of 11.36 indicates that GMAB has no problem at all paying its short term obligations.
  • The Quick ratio of GMAB (11.36) is better than 80.34% of its industry peers.

Understanding NASDAQ:GMAB's Profitability

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 12.19% is amongst the best of the industry. GMAB outperforms 97.97% of its industry peers.
  • GMAB has a better Return On Equity (13.81%) than 96.78% of its industry peers.
  • GMAB has a Return On Invested Capital of 15.04%. This is amongst the best in the industry. GMAB outperforms 98.14% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for GMAB is above the industry average of 13.61%.
  • Looking at the Profit Margin, with a value of 25.24%, GMAB belongs to the top of the industry, outperforming 97.97% of the companies in the same industry.
  • GMAB has a better Operating Margin (37.10%) than 98.64% of its industry peers.

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

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

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.

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GENMAB A/S -SP ADR

NASDAQ:GMAB (5/29/2024, 7:06:51 PM)

Premarket: 27.94 -0.05 (-0.18%)

27.99

-0.02 (-0.07%)

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