GENMAB A/S -SP ADR (NASDAQ:GMAB) - A Strong Candidate for Affordable Growth Investors

GENMAB A/S -SP ADR (NASDAQ:GMAB) was identified by our stock screener as an affordable growth stock. The company combines solid growth metrics with reasonable valuation, while maintaining strong financial health and profitability. Below, we break down why GMAB stands out in these areas.

Growth Prospects

• GMAB has demonstrated strong historical growth, with revenue increasing by 30.67% over the past year and an average annual growth rate of 32.03% in recent years.
• Earnings per share (EPS) grew by 24.67% in the last year, with a three-year average EPS growth of 29.12%.
• Future revenue growth is projected at 11.53% annually, indicating continued expansion, though EPS growth is expected to moderate to 7.42%.

Valuation

• The stock trades at a P/E ratio of 12.71, significantly below both the industry average (60.10) and the S&P 500 (26.60).
• Its forward P/E of 10.29 suggests further upside potential, with GMAB cheaper than 96% of its biotechnology peers.
• The company’s enterprise value to EBITDA and price-to-free cash flow ratios also indicate undervaluation relative to the sector.

Financial Health & Profitability

• GMAB holds a strong balance sheet, with an Altman-Z score of 7.81, signaling low bankruptcy risk.
• The company maintains a debt-to-equity ratio of just 0.03, reflecting minimal reliance on debt financing.
• Profitability metrics are robust, including a 36.44% profit margin and a 21.38% return on equity, both ranking in the top tier of the industry.

For a deeper look at GMAB’s fundamentals, review the full analysis report.

Our Affordable Growth screener lists more stocks with similar characteristics and is updated daily.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own research before making investment decisions.