Genmab (GMAB) AI Stock Analysis

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Genmab

(NASDAQ:GMAB)

Rating:72Outperform

Price Target:

$23.50

▲(7.50%Upside)

Genmab's strong financial performance is the primary driver of its stock score, reflecting solid profitability and financial stability. Valuation is favorable with a low P/E ratio, but technical analysis indicates mixed momentum signals. The absence of a dividend yield and lack of recent earnings call insights are secondary factors.

Positive Factors

Clinical Development

Genmab has committed to initiating a Phase III study for Rina-S in second-line plus endometrial cancer, demonstrating a strong commitment to advancing their treatment options.

Clinical Performance

Rina-S continues to show impressive efficacy in endometrial cancer with a confirmed objective response rate of 47–50% and encouraging early signs of durability.

Market Potential

The blockbuster potential of Rina-S is bolstered by continued clinical success, serving as a key driver for potential upside in Genmab stock.

Negative Factors

Clinical Concerns

Potential concerns around myelosuppression and positioning within the competitive landscape were addressed, indicating areas of caution.

Competitive Landscape

The company must navigate a competitive landscape for Rina-S while pursuing an all-comer development strategy in endometrial cancer.

Genmab (GMAB) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$13.20B

Dividend YieldN/A

Average Volume (3M)1.42M

Price to Earnings (P/E)12.3

Beta (1Y)0.58

Revenue Growth25.11%

EPS Growth46.46%

CountryUS

Employees2,638

SectorHealthcare

Sector Strength39

IndustryBiotechnology

Share Statistics

EPS (TTM)0.30

Shares Outstanding641,542,540

10 Day Avg. Volume1,090,533

30 Day Avg. Volume1,424,272

Financial Highlights & Ratios

PEG Ratio0.04

Price to Book (P/B)0.70

Price to Sales (P/S)0.00

P/FCF Ratio5.35

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$32.80

Price Target Upside50.05% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering7

Genmab Business Overview & Revenue Model

Company DescriptionGenmab A/S is a biotechnology company specializing in the creation and development of differentiated antibody therapeutics for the treatment of cancer. The company operates primarily in the healthcare and biotechnology sectors, leveraging its proprietary technology platforms to develop a robust pipeline of innovative antibody therapeutics. Genmab's core products include approved medicines like DARZALEX, Kesimpta, and TEPEZZA, which are developed in collaboration with leading pharmaceutical companies.

How the Company Makes MoneyGenmab generates revenue through a combination of royalties, collaboration agreements, and milestone payments. A significant portion of its revenue comes from royalties on sales of its marketed products, such as DARZALEX, which is commercialized by Janssen Biotech, a subsidiary of Johnson & Johnson. The company also enters into strategic partnerships and licensing agreements with major pharmaceutical companies to co-develop and commercialize its antibody products, which provides upfront payments, development milestones, and sales-based royalties. Additionally, Genmab invests in its own proprietary product pipeline with the potential for future commercialization, thus creating multiple avenues for revenue generation.

Genmab Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q4-2024)

% Change Since: 6.12%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Positive

The earnings call reflects a strong financial performance in 2024 with significant revenue and profit growth, driven by the success of commercialized medicines like EPKINLY and TIVDAK. The company has a robust pipeline with strategic investments and provided optimistic guidance for 2025. However, there are minor concerns about EPKINLY's flat sales in Q4 and the company's dependency on key products amid competitive pressures.

Q4-2024 Updates

Positive Updates

Strong Revenue and Profit Growth

Genmab achieved a 31% total revenue growth in 2024, driven by the success of its commercialized medicines, including EPKINLY and TIVDAK. The company also grew operating profit by 26% and ended the year with nearly $3 billion in cash.

EPKINLY's Market Expansion

EPKINLY received multiple regulatory approvals and achieved $281 million in sales for 2024, driven by strong performance in the U.S. and Japan. The drug is expected to have a peak sales opportunity exceeding $3 billion.

Pipeline and Strategic Investments

Genmab has 12 products in 30 clinical trials, including seven Phase III trials. The company made strategic investments such as the $1.8 billion acquisition of ProfoundBio to accelerate development.

TIVDAK's Continued Growth

TIVDAK achieved $131 million in sales during 2024 and is regarded as the global standard of care in second-line plus recurrent or metastatic cervical cancer.

Robust Financial Guidance for 2025

Genmab provided 2025 guidance with expected revenue growth of 12% at the midpoint and a recurring revenue growth of 18%.

Negative Updates

Flat EPKINLY Sales in Q4

EPKINLY's sales were flat in Q4 compared to Q3, partly due to a one-time accounting adjustment in Europe.

Dependency on Key Products

Genmab's revenue heavily relies on key products like DARZALEX, with potential impacts from emerging competitors like Blenrep.

Company Guidance

On the Genmab Full Year 2024 Financial Results Conference Call held on February 14, 2025, the company reported a robust financial performance, with total revenue growth of 31%, driven by the success of its eight commercialized medicines, including EPKINLY and TIVDAK. Genmab's operating profit grew by 26% despite significant investments, such as the $1.8 billion acquisition of ProfoundBio and a $500 million share buyback. The company ended the year with nearly $3 billion in cash, reinforcing its financial strength. Genmab is advancing its pipeline, with 12 products or product candidates in 30 clinical trials, including seven Phase III trials. The company expects significant revenue growth from its late-stage programs, EPKINLY, Rina-S, and Acasunlimab, by the end of the decade. For 2025, Genmab provided guidance for revenue in the range of $3.3 to $3.7 billion and operating expenses between $2.1 billion and $2.2 billion, projecting 16% growth in operating profit.

Genmab Financial Statement Overview

Summary

Genmab demonstrates robust financial health with strong profitability, a solid balance sheet, and effective cash flow management. Despite a slight recent revenue decline, the company maintains a strong market position with efficient operations and low leverage, providing resilience against market volatility.

Income Statement

Very Positive

Genmab exhibits strong profitability with a consistent gross profit margin exceeding 95% across the years. The net profit margin for TTM is a robust 37.1%, highlighting effective cost management. Revenue growth is evident, although there was a decline in the most recent period compared to the previous year, indicating potential market fluctuations or competitive pressures.

Balance Sheet

Very Positive

The balance sheet reflects strong financial stability with a low debt-to-equity ratio of 0.027 in TTM, indicating low financial leverage. The equity ratio is high, around 80.4%, showcasing a solid equity base. Return on equity is impressive at 12.7%, reflecting efficient use of equity capital.

Cash Flow

Very Positive

Cash flow statements reveal a strong cash generation capability, with a high operating cash flow to net income ratio of 0.97 and a free cash flow to net income ratio of 0.95 in TTM. However, free cash flow growth has seen some fluctuations, indicating potential investment cycles or operational changes.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.32B	21.53B	16.47B	14.60B	8.48B	10.11B
Gross Profit	21.23B	20.54B	16.25B	14.60B	8.48B	10.11B
EBITDA	6.62B	9.70B	5.56B	7.35B	3.15B	6.54B
Net Income	6.71B	7.84B	4.35B	5.45B	2.96B	4.76B
Balance Sheet
Total Assets	6.59B	45.81B	35.29B	30.28B	24.63B	21.14B
Cash, Cash Equivalents and Short-Term Investments	3.23B	21.10B	28.14B	22.32B	19.34B	16.08B
Total Debt	143.00M	1.03B	770.00M	597.00M	425.00M	319.00M
Total Liabilities	1.29B	9.11B	3.68B	2.84B	2.43B	2.02B
Stockholders Equity	5.30B	36.70B	31.61B	27.44B	22.20B	19.12B
Cash Flow
Free Cash Flow	6.35B	7.58B	7.00B	3.60B	1.98B	6.13B
Operating Cash Flow	6.54B	7.77B	7.38B	3.91B	2.23B	6.43B
Investing Cash Flow	-8.51B	-9.91B	-1.28B	-2.76B	-961.00M	-2.35B
Financing Cash Flow	-3.34B	-3.92B	-606.00M	-789.00M	-420.00M	71.00M

Genmab Technical Analysis

Technical Analysis Sentiment

Positive

Last Price21.86

Price Trends

50DMA

21.05

Positive

100DMA

20.82

Positive

200DMA

21.25

Positive

Market Momentum

MACD

>-0.01

Negative

RSI

52.83

Neutral

STOCH

87.79

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GMAB, the sentiment is Positive. The current price of 21.86 is above the 20-day moving average (MA) of 21.27, above the 50-day MA of 21.05, and above the 200-day MA of 21.25, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.83 is Neutral, neither overbought nor oversold. The STOCH value of 87.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GMAB.

Genmab Risk Analysis

Genmab disclosed 51 risk factors in its most recent earnings report. Genmab reported the most risks in the "Legal & Regulatory" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Genmab Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXEL	84 Outperform	$12.02B	20.49	30.22%	―	24.49%	244.87%
UTHR	76 Outperform	$13.56B	11.98	19.94%	―	19.85%	21.16%
INCY	74 Outperform	$13.30B	217.64	0.47%	―	17.13%	-88.78%
GMAB	72 Outperform	$13.20B	12.27	22.69%	―	25.11%	46.46%
BMRN	71 Outperform	$11.44B	21.83	9.64%	―	17.99%	152.10%
Sector *	64 Neutral	¥341.99B	10.89	-2.99%	2.57%	11.76%	-9.96%
ASND	52 Neutral	$10.61B	―	357.68%	―	10.69%	34.71%

* Healthcare Sector Average

Performance Comparison

GMAB

Genmab

21.40

-5.65

-20.89%

BMRN

BioMarin Pharmaceutical

58.10

-26.92

-31.66%

EXEL

Exelixis

44.86

22.46

100.27%

INCY

Incyte

70.34

6.68

10.49%

UTHR

United Therapeutics

295.52

-25.86

-8.05%

ASND

Ascendis Pharma

176.49

38.41

27.82%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 09, 2025