GENMAB A/S -SP ADR (NASDAQ:GMAB) appears to be flying under the radar despite its strong fundamentals.

Discover GENMAB A/S -SP ADR (NASDAQ:GMAB)—an undervalued stock our stock screener has picked out. GMAB demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Valuation Analysis for 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. GMAB has earned a 7 for valuation:

• GMAB is valuated reasonably with a Price/Earnings ratio of 11.34.
• Based on the Price/Earnings ratio, GMAB is valued cheaply inside the industry as 97.69% of the companies are valued more expensively.
• GMAB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.10.
• Based on the Price/Forward Earnings ratio, GMAB is valued cheaply inside the industry as 95.91% of the companies are valued more expensively.
• The average S&P500 Price/Forward Earnings ratio is at 20.74. GMAB is valued slightly cheaper when compared to this.
• 98.76% of the companies in the same industry are more expensive than GMAB, based on the Enterprise Value to EBITDA ratio.
• GMAB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GMAB is cheaper than 97.51% of the companies in the same industry.
• GMAB has a very decent profitability rating, which may justify a higher PE ratio.

Looking at the Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For GMAB, the assigned 7 is a significant indicator of profitability:

• GMAB has a better Return On Assets (17.12%) than 97.69% of its industry peers.
• GMAB's Return On Equity of 21.38% is amongst the best of the industry. GMAB outperforms 96.63% of its industry peers.
• GMAB has a better Return On Invested Capital (13.92%) than 96.80% of its industry peers.
• GMAB has a better Profit Margin (36.44%) than 98.40% of its industry peers.
• GMAB has a better Operating Margin (32.18%) than 98.40% of its industry peers.
• GMAB's Gross Margin of 95.42% is amongst the best of the industry. GMAB outperforms 94.14% of its industry peers.

A Closer Look at Health for GMAB

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. GMAB has received a 8 out of 10:

• GMAB has an Altman-Z score of 8.09. 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 8.09, GMAB belongs to the top of the industry, outperforming 85.26% 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.
• With an excellent Debt to FCF ratio value of 0.14, GMAB belongs to the best of the industry, outperforming 96.98% 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.
• A Quick Ratio of 5.24 indicates that GMAB has no problem at all paying its short term obligations.

A Closer Look at Growth for GMAB

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. GMAB has received a 8 out of 10:

• GMAB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 83.75%, which is quite impressive.
• The Earnings Per Share has been growing by 29.12% on average over the past years. This is a very strong growth
• The Revenue has grown by 30.67% 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 32.03% on average per year.
• The Revenue is expected to grow by 11.53% on average over the next years. This is quite good.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value 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.