Despite its impressive fundamentals, NASDAQ:JAZZ remains undervalued.

Discover JAZZ PHARMACEUTICALS PLC (NASDAQ:JAZZ), an undervalued stock highlighted by our stock screener. NASDAQ:JAZZ showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

A Closer Look at Valuation for NASDAQ:JAZZ

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:JAZZ scores a 9 out of 10:

• JAZZ is valuated cheaply with a Price/Earnings ratio of 6.14.
• JAZZ's Price/Earnings ratio is rather cheap when compared to the industry. JAZZ is cheaper than 96.41% of the companies in the same industry.
• JAZZ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 30.45.
• A Price/Forward Earnings ratio of 4.98 indicates a rather cheap valuation of JAZZ.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of JAZZ indicates a rather cheap valuation: JAZZ is cheaper than 95.90% of the companies listed in the same industry.
• JAZZ is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.99, which is the current average of the S&P500 Index.
• Based on the Enterprise Value to EBITDA ratio, JAZZ is valued cheaply inside the industry as 92.82% of the companies are valued more expensively.
• 95.90% of the companies in the same industry are more expensive than JAZZ, based on the Price/Free Cash Flow ratio.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The decent profitability rating of JAZZ may justify a higher PE ratio.

Understanding NASDAQ:JAZZ's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:JAZZ has earned a 7 out of 10:

• JAZZ has a Return On Assets of 3.48%. This is amongst the best in the industry. JAZZ outperforms 85.64% of its industry peers.
• JAZZ has a better Return On Equity (10.50%) than 89.23% of its industry peers.
• With an excellent Return On Invested Capital value of 4.81%, JAZZ belongs to the best of the industry, outperforming 83.59% of the companies in the same industry.
• The last Return On Invested Capital (4.81%) for JAZZ is above the 3 year average (3.02%), which is a sign of increasing profitability.
• JAZZ has a Profit Margin of 10.10%. This is amongst the best in the industry. JAZZ outperforms 87.18% of its industry peers.
• The Operating Margin of JAZZ (15.26%) is better than 85.64% of its industry peers.
• The Gross Margin of JAZZ (89.39%) is better than 91.79% 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 1.38. This is in the better half of the industry: JAZZ outperforms 62.56% of its industry peers.
• JAZZ's Debt to FCF ratio of 5.61 is amongst the best of the industry. JAZZ outperforms 86.67% of its industry peers.
• A Current Ratio of 2.37 indicates that JAZZ has no problem at all paying its short term obligations.
• A Quick Ratio of 2.02 indicates that JAZZ has no problem at all paying its short term obligations.

How We Gauge Growth for NASDAQ:JAZZ

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:JAZZ, the assigned 5 reflects its growth potential:

• The Earnings Per Share has grown by an impressive 31.56% over the past year.
• Measured over the past years, JAZZ shows a quite strong growth in Revenue. The Revenue has been growing by 15.19% on average per year.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of JAZZ for a complete fundamental analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.