One-glance verdict
Within fair range
$56.67 our estimate vs market $52.74
Wall Street consensus: $64.96 (14.6% higher than our fair-value estimate)
7% below our estimate
Fundamentals snapshot
Genmab A/S
GMAB · NMS · Healthcare · Biotechnology
Current price
$52.74
52-week range
$23.62 - $59.97
Market cap
$32.43B
Balance sheet
Watch
20.49x Strong cushion
Net debt $3.76B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 19.2% last year.
- Reward Returns 14.0% on equity, ahead of 50% of its peers.
- Risk Stock trades 64.8% above its 5-year average P/E.
- Risk Operating margin compressed from 43.2% to 35.2% over 3 years.
What this company does
Genmab A/S
Genmab A/S creates advanced medicines, mainly antibody treatments, to fight serious diseases like cancer and thyroid issues. Their income comes from selling these approved drugs and from partnerships where other companies help develop and sell their medicines. This is important because it shows how they fund their ongoing research to find new cures.
How the company got here
Genmab A/S started in 1998 with a focus on creating antibody-based medicines to fight serious diseases, especially cancer. The company's journey has been marked by significant scientific advancements and strategic partnerships. A key turning point was the development and successful commercialization of innovative treatments that have helped patients with difficult-to-treat conditions. These successes have positioned Genmab as a significant player in the biotechnology field, enabling further investment in research and development.
What it actually does
Genmab is a biotechnology company that creates specialized medicines, primarily antibodies, designed to help the body's own immune system fight diseases like cancer. Think of antibodies as highly targeted 'guided missiles' that can identify and attack diseased cells while leaving healthy ones alone. The company develops these complex biological treatments, which are then often partnered with larger pharmaceutical companies for manufacturing and global distribution.
Antibody-Based Therapies
This is Genmab's core business, focusing on developing cutting-edge antibody therapies. These treatments are designed to target specific markers on cancer cells or other diseased cells, either to directly kill them or to enlist the patient's immune system to do the job. Products like EPKINLY, TEPKINLY, and Tivdak are examples of these therapies currently available to patients for certain types of lymphoma and cervical cancer. This segment represents the vast majority of Genmab's efforts and potential future revenue.
What management is betting on now
Genmab's current strategy centers on expanding its pipeline of innovative antibody therapies and advancing its existing products through clinical trials for new indications and patient populations. The company is heavily invested in research and development to discover and create next-generation treatments. Key priorities include forging strategic collaborations with other pharmaceutical giants to help bring these complex medicines to more patients worldwide and to share the significant costs associated with drug development. Management is focused on building a sustainable business by continuously innovating in the field of antibody therapeutics.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $56.67 vs current price $52.74
Wall Street consensus is the average analyst price target: $64.96 (14.6% higher than our fair-value estimate).
Our most-likely fair value is $56.67 a share — about 7.4% away from today's price of $52.74, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $3.8B. Interest coverage 20.5x.
Net debt
$3.76B
Interest coverage
20.49x
Genmab A/S's profit covers its interest bill about 20.5 times over. and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
GMAB
BASELINE
Genmab A/S
Total debt $5.27B Interest coverage 20.49x This is the baseline the peer rows are being compared against.
Total debt $47.00M Interest coverage 258.36x +1,161% vs GMAB Carries about 12.6x more debt cushion than GMAB.
Total debt $403.63M Interest coverage -45.12x -100% vs GMAB This peer has almost no interest-payment cushion compared with GMAB.
Total debt $2.71B Interest coverage 84.52x +312% vs GMAB Carries about 4.1x more debt cushion than GMAB.
Total debt $37.41M Interest coverage 553.04x +2,599% vs GMAB Carries about 27.0x more debt cushion than GMAB.
What you should know
The case for and against GMAB
3 Rewards
3 Risks
Rewards
-
Revenue grew 19.2% last year.
-
Returns 14.0% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Stock trades 64.8% above its 5-year average P/E.
-
Operating margin compressed from 43.2% to 35.2% over 3 years.
-
Insider ownership is only 0.0% (peer median: 2.0%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
41.53x
Forward P/E
33.38x
P/B
5.29x
P/S
7.85x
EV/EBITDA
26.63x
PEG ratio
8.24x
Profitability
How much profit each dollar creates
Gross margin
93.0%
Operating margin
35.2%
Net margin
19.1%
ROE
14.0%
ROA
8.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.89x
Current ratio
2.46x
Quick ratio
2.44x
Total debt
$5.27B
Total cash
$1.51B
Growth
How the business has been compounding
Revenue TTM
$4.13B
Revenue 5Y CAGR
21.2%
EPS TTM
1.27
EPS 5Y CAGR
8.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.19B
Free CF TTM
$1.13B
FCF margin
27.4%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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