NASDAQ:JAZZ, an undervalued stock with good fundamentals.

Last update: Nov 4, 2024

Our stock screening tool has identified JAZZ PHARMACEUTICALS PLC (NASDAQ:JAZZ) as an undervalued gem with strong fundamentals. NASDAQ:JAZZ boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

ChartMill's Evaluation of Valuation

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:JAZZ was assigned a score of 9 for valuation:

JAZZ is valuated cheaply with a Price/Earnings ratio of 6.19.
Compared to the rest of the industry, the Price/Earnings ratio of JAZZ indicates a rather cheap valuation: JAZZ is cheaper than 94.27% of the companies listed in the same industry.
JAZZ is valuated cheaply when we compare the Price/Earnings ratio to 30.16, which is the current average of the S&P500 Index.
JAZZ is valuated cheaply with a Price/Forward Earnings ratio of 5.03.
96.35% of the companies in the same industry are more expensive than JAZZ, based on the Price/Forward Earnings ratio.
JAZZ is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
91.67% 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 cheaply inside the industry as 95.83% of the companies are valued more expensively.
JAZZ's 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's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:JAZZ, the assigned 7 is a significant indicator of profitability:

Looking at the Return On Assets, with a value of 3.48%, JAZZ belongs to the top of the industry, outperforming 85.94% of the companies in the same industry.
With an excellent Return On Equity value of 10.50%, JAZZ belongs to the best of the industry, outperforming 89.06% of the companies in the same industry.
With an excellent Return On Invested Capital value of 4.81%, JAZZ belongs to the best of the industry, outperforming 82.81% 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's Profit Margin of 10.10% is amongst the best of the industry. JAZZ outperforms 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.
With an excellent Gross Margin value of 89.39%, JAZZ belongs to the best of the industry, outperforming 92.19% of the companies in the same industry.

Health Assessment of 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:

With an excellent Debt to FCF ratio value of 5.61, JAZZ belongs to the best of the industry, outperforming 86.46% of the companies in the same industry.
JAZZ has a Current Ratio of 2.37. This indicates that JAZZ is financially healthy and has no problem in meeting 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.

Deciphering NASDAQ:JAZZ's Growth Rating

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:JAZZ has earned a 5 for growth:

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

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

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.