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Genmab A/S (GMAB)
NASDAQ:GMAB
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Genmab
(NASDAQ:GMAB)83Outperform
Positive Factors
Financial Performance
Genmab reported 2024 revenues that were modestly above consensus estimates, highlighting growth in key areas such as Darzalex and Kesimpta royalties.
Pipeline Development
The announcement of a Phase III study for Rina-S in endometrial cancer indicates continued pipeline development and potential future opportunities.
Negative Factors
Patent Risks
The price target is being lowered to $20, based on a reduced P/E multiple due to the increasing likelihood of Darzalex patent issues in 2030/31.
Genmab (GMAB) vs. S&P 500 (SPY)
Market Cap
$15.21B
Dividend YieldN/A
Average Volume (3M)1.55M
Price to Earnings (P/E)13.4
Beta (1Y)0.62
Revenue Growth30.43%
EPS Growth82.29%
CountryUS
Employees2,204
SectorHealthcare
Sector Strength74
IndustryBiotechnology
Share Statistics
EPS (TTM)1.77
Shares Outstanding661,972,400
10 Day Avg. Volume898,862
30 Day Avg. Volume1,551,255
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)N/A
Price to Sales (P/S)5.33
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$34.25Price Target Upside41.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Genmab Business Overview & Revenue Model
Company DescriptionGenmab (GMAB) is a biotechnology company specializing in the creation and development of differentiated antibody therapeutics for the treatment of cancer and other serious diseases. Operating primarily in the biotechnology and pharmaceutical sectors, Genmab's core products include proprietary antibody technology platforms and a pipeline of antibody-based drug candidates that address significant unmet medical needs.
How the Company Makes MoneyGenmab makes money through a variety of channels, primarily centered around its proprietary antibody therapeutics. The company generates revenue through partnerships and collaborations with other pharmaceutical and biotechnology companies, which often involve upfront payments, milestone payments, and royalties on sales of products developed using Genmab's technology. Additionally, Genmab earns revenue from its own product sales and licensing agreements. Key partnerships and collaborations with industry leaders such as Janssen Biotech and Novartis contribute significantly to its earnings, providing both financial support and market reach for its antibody products.
Genmab Financial Statement Overview
Summary
Genmab exhibits strong financial health with impressive revenue growth of 31% and robust profitability margins. The company's low leverage and high equity provide financial stability, although substantial equity might limit flexibility. Overall, Genmab's financial performance is commendable, positioning it well for sustained growth and success.Income Statement
Genmab shows impressive financial strength with robust revenue growth from 2023 to 2024, increasing by 30.65%. The company maintains a high Gross Profit Margin at 95.43% and a strong Net Profit Margin of 36.44% for 2024. Both EBIT and EBITDA margins are also healthy, at 31.13% and 34.33% respectively, highlighting efficient operations and profitability. The consistent upward trend in revenue and net income indicates strong market positioning and operational management.92
Very Positive
Balance Sheet
The balance sheet of Genmab reflects a very low Debt-to-Equity ratio of 0.03, indicating minimal leverage and financial risk. Additionally, the company has a high Equity Ratio of 80.09%, showcasing a solid capital structure with substantial equity backing assets. Return on Equity is impressive at 21.38%, driven by strong profitability. The company's balance sheet shows stability, but continued high equity levels could limit financial agility.85
Very Positive
Cash Flow
Genmab's cash flow is robust, with a Free Cash Flow growth of 8.28% from 2023 to 2024, demonstrating effective cash management. The Operating Cash Flow to Net Income ratio is 0.99, indicating excellent conversion of income to cash. Free Cash Flow to Net Income ratio stands at 0.97, reflecting efficient capital expenditure management. Overall, the strong cash flow metrics support the company's financial flexibility and capacity for investment.88
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 21.53B | 16.47B | 14.60B | 8.48B | 10.11B | Gross Profit |
| 20.54B | 16.25B | 14.60B | 8.48B | 10.11B | EBIT |
| 6.70B | 5.32B | 6.36B | 3.02B | 6.31B | EBITDA |
| 7.39B | 5.56B | 7.04B | 3.15B | 6.54B | Net Income Common Stockholders |
| 7.84B | 4.35B | 5.45B | 2.96B | 4.76B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 21.10B | 28.14B | 22.32B | 19.34B | 16.08B | Total Assets |
| 45.81B | 35.29B | 30.28B | 24.63B | 21.14B | Total Debt |
| 1.03B | 770.00M | 597.00M | 425.00M | 319.00M | Net Debt |
| -8.83B | -14.10B | -9.30B | -8.53B | -6.94B | Total Liabilities |
| 9.11B | 3.68B | 2.84B | 2.43B | 2.02B | Stockholders Equity |
| 36.70B | 31.61B | 27.44B | 22.20B | 19.12B |
| Cash Flow | Free Cash Flow | |||
| 7.58B | 7.00B | 3.60B | 1.98B | 6.13B | Operating Cash Flow |
| 7.77B | 7.38B | 3.91B | 2.23B | 6.43B | Investing Cash Flow |
| -9.91B | -1.28B | -2.76B | -961.00M | -2.35B | Financing Cash Flow |
| -3.92B | -606.00M | -789.00M | -420.00M | 71.00M |
Genmab Technical Analysis
Positive
24.14
Price Trends
21.23
Positive
21.54
Positive
24.11
Positive
Market Momentum
0.87
Negative
71.06
Negative
89.01
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 24.14 is above the 20-day moving average (MA) of 21.94, above the 50-day MA of 21.23, and above the 200-day MA of 24.11, indicating a bullish trend. The MACD of 0.87 indicates Negative momentum. The RSI at 71.06 is Negative, neither overbought nor oversold. The STOCH value of 89.01 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 (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $15.21B | 13.40 | 23.16% | ― | 30.43% | 82.29% | |
78 Outperform | $76.36B | 18.22 | 15.95% | 0.13% | 8.27% | 10.35% | |
75 Outperform | $144.51B | 303.37 | 2.28% | 2.65% | 6.16% | -91.54% | |
75 Outperform | $170.06B | 41.87 | 67.55% | 2.88% | 18.64% | -39.39% | |
69 Neutral | $21.57B | 13.45 | 10.36% | ― | -1.60% | 39.71% | |
64 Neutral | $126.25B | ― | -3.15% | ― | 11.64% | -114.72% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% |
* Healthcare Sector Average
Performance Comparison
GMAB
Genmab
24.14
-6.16
-20.33%
AMGN
Amgen
324.86
59.21
22.29%
BIIB
Biogen
150.38
-72.86
-32.64%
GILD
Gilead Sciences
117.41
45.24
62.69%
REGN
Regeneron
707.51
-260.08
-26.88%
VRTX
Vertex Pharmaceuticals
488.29
74.70
18.06%
Genmab Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: 27.79% | Next Earnings Date: May 8, 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.Highlights
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%.
Lowlights
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.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.