Genmab A/S ADS shares fell by -2.7% during the day's morning session, and are now trading at a price of $29.71. Is it time to buy the dip? To better answer that question, it's essential to check if the market is valuing the company's shares fairly in terms of its earnings and equity levels.
Genmab A/S ADS Has Attractive Multiples and Trades Below Its Fair Value:
Genmab A/S, a biotechnology company, develops antibody-based products and product candidates for the treatment of cancer and other diseases in Denmark. The company belongs to the Health Care sector, which has an average price to earnings (P/E) ratio of 22.94 and an average price to book (P/B) ratio of 3.19. In contrast, Genmab A/S ADS has a trailing 12 month P/E ratio of 15.4 and a P/B ratio of 0.34.
Genmab A/S ADS has moved 34.1% over the last year compared to 15.1% for the S&P 500 — a difference of 19.0%. Genmab A/S ADS has a 52 week high of $33.65 and a 52 week low of $17.23.
Exceptional EPS Growth and an Excellent Current Ratio:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $5,366 | $10,111 | $8,417 | $14,505 | $16,474 | $21,526 |
| Operating Margins | 49% | 62% | 35% | 43% | 32% | 31% |
| Net Margins | 40% | 47% | 35% | 38% | 26% | 36% |
| Net Income (M) | $2,166 | $4,758 | $2,957 | $5,452 | $4,352 | $7,844 |
| Net Interest Expense (M) | $221 | -$409 | $965 | $678 | $316 | $2,461 |
| Earnings Per Share | $34.03 | $72.21 | $44.77 | $82.59 | $66.02 | $121.36 |
| EPS Growth | n/a | 112.2% | -38.0% | 84.48% | -20.06% | 83.82% |
| Free Cash Flow (M) | $1,326 | $6,433 | $2,228 | $3,912 | $7,380 | $7,771 |
| Current Ratio | 14.88 | 15.0 | 14.44 | 15.48 | 13.34 | 5.25 |
Genmab A/S ADS has exceptional EPS growth, generally positive cash flows, and an excellent current ratio of 5.25. Furthermore, Genmab A/S ADS has decent operating margins with a negative growth trend.
