NASDAQ:JAZZ is an undervalued gem with solid fundamentals.

JAZZ PHARMACEUTICALS PLC (NASDAQ:JAZZ) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NASDAQ:JAZZ showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

Looking at the Valuation

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:

• A Price/Earnings ratio of 6.38 indicates a rather cheap valuation of JAZZ.
• 93.72% 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 28.94. JAZZ is valued rather cheaply when compared to this.
• The Price/Forward Earnings ratio is 5.67, 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 94.76% of the companies in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 23.53, JAZZ is valued rather cheaply.
• Based on the Enterprise Value to EBITDA ratio, JAZZ is valued cheaply inside the industry as 89.01% of the companies are valued more expensively.
• Based on the Price/Free Cash Flow ratio, JAZZ is valued cheaper than 95.29% 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.

Exploring NASDAQ:JAZZ's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:JAZZ has achieved a 7:

• JAZZ has a better Return On Assets (3.78%) than 86.39% of its industry peers.
• With an excellent Return On Equity value of 11.10%, JAZZ belongs to the best of the industry, outperforming 89.53% of the companies in the same industry.
• The Return On Invested Capital of JAZZ (4.95%) is better than 81.68% of its industry peers.
• The 3 year average ROIC (3.02%) for JAZZ is below the current ROIC(4.95%), indicating increased profibility in the last year.
• JAZZ has a Profit Margin of 11.60%. This is amongst the best in the industry. JAZZ outperforms 87.43% of its industry peers.
• JAZZ has a better Operating Margin (17.62%) than 85.34% of its industry peers.
• JAZZ has a better Gross Margin (89.37%) than 92.67% of its industry peers.

Evaluating Health: NASDAQ:JAZZ

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:JAZZ, the assigned 6 for health provides valuable insights:

• JAZZ has a better Altman-Z score (1.51) than 64.40% of its industry peers.
• Looking at the Debt to FCF ratio, with a value of 5.55, JAZZ belongs to the top of the industry, outperforming 87.43% of the companies in the same industry.
• JAZZ has a Current Ratio of 4.26. This indicates that JAZZ is financially healthy and has no problem in meeting its short term obligations.
• The Current ratio of JAZZ (4.26) is better than 62.30% of its industry peers.
• A Quick Ratio of 3.74 indicates that JAZZ has no problem at all paying its short term obligations.
• With a decent Quick ratio value of 3.74, JAZZ is doing good in the industry, outperforming 60.21% of the companies in the same industry.

ChartMill's Evaluation of Growth

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:JAZZ boasts a 5 out of 10:

• JAZZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.22%, which is quite impressive.
• JAZZ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.19% yearly.
• The Earnings Per Share is expected to grow by 8.31% on average over the next years. This is quite good.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

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 article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.