Don't overlook GENMAB A/S -SP ADR (NASDAQ:GMAB)—a stock with solid growth prospects and a reasonable valuation.

Discover GENMAB A/S -SP ADR (NASDAQ:GMAB), an undervalued growth gem identified by our stock screener. NASDAQ:GMAB is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Evaluating Growth: NASDAQ:GMAB

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:

• The Earnings Per Share has been growing by 14.25% on average over the past years. This is quite good.
• The Revenue has grown by 30.67% in the past year. This is a very strong growth!
• The Revenue has been growing by 32.03% on average over the past years. This is a very strong growth!
• GMAB is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.52% yearly.
• GMAB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.17% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Deciphering NASDAQ:GMAB's Valuation Rating

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:GMAB, the assigned 8 reflects its valuation:

• Based on the Price/Earnings ratio, GMAB is valued cheaply inside the industry as 95.63% of the companies are valued more expensively.
• Based on the Price/Forward Earnings ratio, GMAB is valued cheaper than 95.45% of the companies in the same industry.
• When comparing the Price/Forward Earnings ratio of GMAB to the average of the S&P500 Index (22.10), we can say GMAB is valued slightly cheaper.
• Based on the Enterprise Value to EBITDA ratio, GMAB is valued cheaply inside the industry as 97.73% of the companies are valued more expensively.
• GMAB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GMAB is cheaper than 97.03% of the companies in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The decent profitability rating of GMAB may justify a higher PE ratio.
• A more expensive valuation may be justified as GMAB's earnings are expected to grow with 36.51% in the coming years.

Deciphering NASDAQ:GMAB's Health Rating

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:

• GMAB has an Altman-Z score of 9.22. This indicates that GMAB is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 9.22, GMAB belongs to the best of the industry, outperforming 87.24% 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 97.03% 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 5.25. This indicates that GMAB is financially healthy and has no problem in meeting its short term obligations.
• GMAB has a Quick Ratio of 5.24. This indicates that GMAB is financially healthy and has no problem in meeting its short term obligations.

What does the Profitability looks like for 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 17.12% is amongst the best of the industry. GMAB outperforms 97.55% of its industry peers.
• The Return On Equity of GMAB (21.38%) is better than 97.03% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 13.92%, GMAB belongs to the top of the industry, outperforming 96.85% of the companies in the same industry.
• With an excellent Profit Margin value of 36.44%, GMAB belongs to the best of the industry, outperforming 98.60% of the companies in the same industry.
• GMAB has a better Operating Margin (32.18%) than 98.78% of its industry peers.
• Looking at the Gross Margin, with a value of 95.42%, GMAB belongs to the top of the industry, outperforming 95.10% of the companies in the same industry.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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. 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.