When you look at NASDAQ:JAZZ, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Last update: Aug 29, 2024

Consider JAZZ PHARMACEUTICALS PLC (NASDAQ:JAZZ) as a top value stock, identified by our stock screening tool. NASDAQ:JAZZ shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Deciphering NASDAQ:JAZZ's Valuation Rating

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:JAZZ has earned a 9 for valuation:

With a Price/Earnings ratio of 6.52, the valuation of JAZZ can be described as very cheap.
96.88% of the companies in the same industry are more expensive than JAZZ, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 30.00. JAZZ is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 5.28, which indicates a rather cheap valuation of JAZZ.
JAZZ's Price/Forward Earnings ratio is rather cheap when compared to the industry. JAZZ is cheaper than 95.83% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.62, JAZZ is valued rather cheaply.
JAZZ's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. JAZZ is cheaper than 91.67% of the companies in the same industry.
94.79% of the companies in the same industry are more expensive than JAZZ, based on the Price/Free Cash Flow ratio.
JAZZ's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
JAZZ has a very decent profitability rating, which may justify a higher PE ratio.

Profitability Analysis for NASDAQ:JAZZ

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:JAZZ, the assigned 7 is noteworthy for profitability:

JAZZ has a Return On Assets of 3.48%. This is amongst the best in the industry. JAZZ outperforms 85.94% of its industry peers.
The Return On Equity of JAZZ (10.50%) is better than 89.06% of its industry peers.
JAZZ has a better Return On Invested Capital (4.81%) than 83.33% of its industry peers.
The 3 year average ROIC (3.02%) for JAZZ is below the current ROIC(4.81%), indicating increased profibility in the last year.
The Profit Margin of JAZZ (10.10%) is better than 87.50% of its industry peers.
With an excellent Operating Margin value of 15.26%, JAZZ belongs to the best of the industry, outperforming 85.42% of the companies in the same industry.
JAZZ's Gross Margin of 89.39% is amongst the best of the industry. JAZZ outperforms 91.67% of its industry peers.

What does the Health looks like for NASDAQ:JAZZ

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:JAZZ has earned a 5 out of 10:

JAZZ has a Altman-Z score of 1.43. This is in the better half of the industry: JAZZ outperforms 63.54% of its industry peers.
With an excellent Debt to FCF ratio value of 5.61, JAZZ belongs to the best of the industry, outperforming 85.94% of the companies in the same industry.
A Current Ratio of 2.37 indicates that JAZZ has no problem at all paying its short term obligations.
JAZZ has a Quick Ratio of 2.02. This indicates that JAZZ is financially healthy and has no problem in meeting its short term obligations.

Evaluating Growth: NASDAQ:JAZZ

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:JAZZ was assigned a score of 5 for growth:

The Earnings Per Share has grown by an impressive 31.56% over the past year.
The Revenue has been growing by 15.19% on average over the past years. This is quite good.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of JAZZ

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.