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

By Mill Chart

Last update: Apr 11, 2024

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.

ChartMill's Evaluation of Growth

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:GMAB has earned a 8 for growth:

  • GMAB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.70% yearly.
  • Looking at the last year, GMAB shows a quite strong growth in Revenue. The Revenue has grown by 12.87% in the last year.
  • The Revenue has been growing by 40.35% on average over the past years. This is a very strong growth!
  • Based on estimates for the next years, GMAB will show a very strong growth in Earnings Per Share. The EPS will grow by 31.70% on average per year.
  • Based on estimates for the next years, GMAB will show a quite strong growth in Revenue. The Revenue will grow by 18.76% on average per year.
  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Looking at the Valuation

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:GMAB has achieved a 6 out of 10:

  • Based on the Price/Earnings ratio, GMAB is valued cheaper than 95.56% of the companies in the same industry.
  • Based on the Price/Forward Earnings ratio, GMAB is valued cheaply inside the industry as 95.73% of the companies are valued more expensively.
  • Based on the Enterprise Value to EBITDA ratio, GMAB is valued cheaper than 95.73% of the companies in the same industry.
  • 97.44% of the companies in the same industry are more expensive than GMAB, based on the Price/Free Cash Flow ratio.
  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • GMAB has a very decent profitability rating, which may justify a higher PE ratio.
  • GMAB's earnings are expected to grow with 27.55% in the coming years. This may justify a more expensive valuation.

Health Assessment of 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:

  • An Altman-Z score of 24.63 indicates that GMAB is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of GMAB (24.63) is better than 94.02% of its industry peers.
  • The Debt to FCF ratio of GMAB is 0.11, which is an excellent value as it means it would take GMAB, only 0.11 years of fcf income to pay off all of its debts.
  • GMAB's Debt to FCF ratio of 0.11 is amongst the best of the industry. GMAB outperforms 97.61% 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.
  • GMAB has a Current Ratio of 13.34. This indicates that GMAB is financially healthy and has no problem in meeting its short term obligations.
  • With an excellent Current ratio value of 13.34, GMAB belongs to the best of the industry, outperforming 87.01% of the companies in the same industry.
  • GMAB has a Quick Ratio of 13.32. This indicates that GMAB is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 13.32, GMAB belongs to the top of the industry, outperforming 87.01% of the companies in the same industry.

Evaluating Profitability: NASDAQ:GMAB

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:GMAB, the assigned 7 is noteworthy for profitability:

  • GMAB's Return On Assets of 12.33% is amongst the best of the industry. GMAB outperforms 97.95% of its industry peers.
  • With an excellent Return On Equity value of 13.77%, GMAB belongs to the best of the industry, outperforming 96.92% of the companies in the same industry.
  • The Return On Invested Capital of GMAB (12.63%) is better than 97.44% of its industry peers.
  • The Profit Margin of GMAB (26.42%) is better than 98.63% of its industry peers.
  • With an excellent Operating Margin value of 32.30%, GMAB belongs to the best of the industry, outperforming 98.80% of the companies in the same industry.
  • With an excellent Gross Margin value of 98.63%, GMAB belongs to the best of the industry, outperforming 98.97% of the companies in the same industry.

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

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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GENMAB A/S -SP ADR

NASDAQ:GMAB (5/24/2024, 7:00:00 PM)

After market: 28 0 (0%)

28

-1.34 (-4.57%)

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