Genmab (GMAB) AI Stock Analysis

• Market Cap: $14.54B
• Dividend Yield: N/A
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.54
• Revenue Growth: 23.25%
• EPS Growth: 64.46%
• Country: US
• Employees: 2,638
• Sector: Healthcare
• Sector Strength: 48
• Industry: Biotechnology
• EPS (TTM): 0.54
• Shares Outstanding: 641,588,130
• 10 Day Avg. Volume: 1,309,071
• 30 Day Avg. Volume: 1,092,772
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 0.59
• Enterprise Value/Ebitda: 1.89
• 1Y Price Target: $31.80
• Price Target Upside: 29.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 82 Outperform
• Price Target: $28.00 ▲(13.59% Upside)

Genmab's overall stock score is driven by strong earnings call results and positive technical indicators, highlighting robust growth prospects and market momentum. The company's solid financial performance, despite recent revenue and cash flow challenges, supports its stability. Valuation metrics suggest the stock is undervalued, offering potential upside. The absence of significant corporate events does not impact the score.

Positive Factors

Financial performance

Genmab recorded a diluted net income of $5.42 per share, which exceeded the previously forecasted $4.13 per share.

Pipeline development

Management provided insights on the future development strategy for both programs, which collectively informed their confidence in achieving long-term revenue growth for the company.

Negative Factors

Competitive landscape

Data to date in NSCLC for acasunlimab has been lackluster in a highly competitive space.

Patent concerns

The outlook remains guarded given uncertainty as to whether Genmab can overcome the Darzalex patent cliff by 2030.

Genmab Business Overview & Revenue Model

Company Description

Genmab A/S develops antibody therapeutics for the treatment of cancer and other diseases primarily in Denmark. The company markets DARZALEX, a human monoclonal antibody for the treatment of patients with multiple myeloma (MM); teprotumumab for the treatment of thyroid eye disease; ofatumurnab, a human monoclonal antibody to treat chronic lymphocytic leukemia (CLL) and multiple sclerosis; and Amivantamab for advanced or metastatic gastric or esophageal cancer and NSCLC. Its products include daratumumab to treat MM, non-MM blood cancers, and AL amyloidosis; GEN1047; tisotumab vedotin for treating cervical, ovarian, and solid cancers; DuoBody-PD-L1x4-1BB, and DuoBody-CD40x4-1BB for treating solid tumors; Epcoritamab for relapsed/refractory diffuse large B-cell lymphoma and chronic lymphocytic leukemia; and HexaBody-CD38 and DuoHexaBody-CD37 for treating hematological malignancies. The company's also develops products, which is in Phase 2 comprise Teclistamab for vaso-occlusive crises; Camidanlumab tesirine to treat hodgkin lymphoma and solid tumors; JNJ-64007957 and JNJ-64407564 to treat MM; PRV-015 for treating celiac disease; Mim8 for treating haemophilia A; and Lu AF82422 for treating multiple system atrophy disease. In addition, it has approximately 20 active pre-clinical programs. The company has a commercial license and collaboration agreement with Seagen Inc. to co-develop tisotumab vedotin. It also has a collaboration agreement with CureVac AG for the research and development of differentiated mRNA-based antibody products; AbbVie for the development of epcoritamab; and collaborations with BioNTech, Janssen, Novo Nordisk A/S, BliNK Biomedical SAS, and Bolt Biotherapeutics, Inc. Genmab A/S was founded in 1999 and is headquartered in Copenhagen, Denmark.

How the Company Makes Money

Genmab primarily generates revenue through a combination of product sales, royalties, and collaboration agreements. The company's flagship product, Darzalex, has become a significant source of income since its approval, generating substantial sales revenue as it is used in various cancer treatments. In addition to product sales, Genmab earns royalties from the commercialization of its products by partners, particularly in the case of Darzalex, which is marketed by Janssen Biotech. Furthermore, Genmab engages in strategic partnerships and licensing agreements with other pharmaceutical companies, which provide upfront payments, milestone payments based on clinical development progress, and additional royalties on future sales. These collaborative efforts enhance its revenue streams and foster innovation while mitigating development risks.

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

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

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

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	17.84B	21.53B	16.47B	14.60B	8.48B	10.11B
Gross Profit	16.88B	20.54B	16.25B	14.60B	8.48B	10.11B
EBITDA	5.27B	9.70B	5.56B	7.35B	3.15B	6.54B
Net Income	5.64B	7.84B	4.35B	5.45B	2.96B	4.76B
Balance Sheet
Total Assets	6.46B	45.81B	35.29B	30.28B	24.63B	21.14B
Cash, Cash Equivalents and Short-Term Investments	2.90B	21.10B	28.14B	22.32B	19.34B	16.08B
Total Debt	148.00M	1.03B	770.00M	597.00M	425.00M	319.00M
Total Liabilities	1.16B	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	4.91B	7.58B	7.00B	3.60B	1.98B	6.13B
Operating Cash Flow	5.09B	7.77B	7.38B	3.91B	2.23B	6.43B
Investing Cash Flow	289.00M	-9.91B	-1.28B	-2.76B	-961.00M	-2.35B
Financing Cash Flow	-692.00M	-3.92B	-606.00M	-789.00M	-420.00M	71.00M

Genmab Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 24.65 is above the 20-day moving average (MA) of 22.67, above the 50-day MA of 22.01, and above the 200-day MA of 21.12, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 67.82 is Neutral, neither overbought nor oversold. The STOCH value of 94.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GMAB.

Genmab Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GMAB	82 Outperform	$14.54B	11.92	26.08%	―	23.25%	64.46%
INCY	80 Outperform	$16.69B	19.60	24.30%	―	18.87%	1088.27%
UTHR	78 Outperform	$14.17B	11.97	19.30%	―	17.62%	19.89%
BMRN	78 Outperform	$11.00B	17.17	11.62%	―	17.38%	153.58%
EXEL	73 Outperform	$10.10B	18.16	29.00%	―	10.73%	81.66%
ASND	61 Neutral	$11.79B	―	357.68%	―	55.77%	46.81%
Sector *	51 Neutral	$7.82B	-0.16	-39.78%	2.19%	21.38%	-1.56%