Take a closer look at JAZZ PHARMACEUTICALS PLC (NASDAQ:JAZZ), a remarkable value stock uncovered by our stock screener. NASDAQ:JAZZ excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.
Unpacking NASDAQ:JAZZ's Valuation Rating
ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:JAZZ, the assigned 9 reflects its valuation:
- JAZZ is valuated cheaply with a Price/Earnings ratio of 6.10.
- Compared to the rest of the industry, the Price/Earnings ratio of JAZZ indicates a rather cheap valuation: JAZZ is cheaper than 94.85% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 31.52, JAZZ is valued rather cheaply.
- JAZZ is valuated cheaply with a Price/Forward Earnings ratio of 4.94.
- Based on the Price/Forward Earnings ratio, JAZZ is valued cheaper than 95.36% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 22.55. JAZZ is valued rather cheaply when compared to this.
- 92.27% of the companies in the same industry are more expensive than JAZZ, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, JAZZ is valued cheaper than 94.85% of the companies in the same industry.
- 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.
What does the Profitability looks like for NASDAQ:JAZZ
ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:JAZZ was assigned a score of 7 for profitability:
- The Return On Assets of JAZZ (3.48%) is better than 85.57% of its industry peers.
- JAZZ has a better Return On Equity (10.50%) than 89.18% of its industry peers.
- JAZZ's Return On Invested Capital of 4.81% is amongst the best of the industry. JAZZ outperforms 82.99% 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 87.11% of its industry peers.
- The Operating Margin of JAZZ (15.26%) is better than 85.57% of its industry peers.
- The Gross Margin of JAZZ (89.39%) is better than 92.27% of its industry peers.
Assessing Health for NASDAQ:JAZZ
ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:JAZZ scores a 5 out of 10:
- JAZZ has a better Altman-Z score (1.38) than 61.34% of its industry peers.
- JAZZ's Debt to FCF ratio of 5.61 is amongst the best of the industry. JAZZ outperforms 86.08% 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.
Evaluating Growth: 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.
- The Revenue has been growing by 15.19% on average over the past years. This is quite good.
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.
Keep in mind
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.