NASDAQ:JAZZ, an undervalued stock with good fundamentals.

Our stock screener has singled out JAZZ PHARMACEUTICALS PLC (NASDAQ:JAZZ) as a stellar value proposition. NASDAQ:JAZZ not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Unpacking NASDAQ:JAZZ's Valuation Rating

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:

• With a Price/Earnings ratio of 6.25, the valuation of JAZZ can be described as very cheap.
• Based on the Price/Earnings ratio, JAZZ is valued cheaper than 96.20% 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 27.25.
• JAZZ is valuated cheaply with a Price/Forward Earnings ratio of 5.51.
• JAZZ's Price/Forward Earnings ratio is rather cheap when compared to the industry. JAZZ is cheaper than 95.65% of the companies in the same industry.
• JAZZ is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.54, which is the current average of the S&P500 Index.
• Based on the Enterprise Value to EBITDA ratio, JAZZ is valued cheaper than 90.76% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of JAZZ indicates a rather cheap valuation: JAZZ is cheaper than 95.11% of the companies listed in the same industry.
• 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.

Exploring NASDAQ:JAZZ's Profitability

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 3.78%. This is amongst the best in the industry. JAZZ outperforms 86.41% of its industry peers.
• With an excellent Return On Equity value of 11.10%, JAZZ belongs to the best of the industry, outperforming 89.67% of the companies in the same industry.
• JAZZ has a Return On Invested Capital of 4.95%. This is amongst the best in the industry. JAZZ outperforms 81.52% 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's Profit Margin of 11.60% is amongst the best of the industry. JAZZ outperforms 87.50% of its industry peers.
• With an excellent Operating Margin value of 17.62%, JAZZ belongs to the best of the industry, outperforming 84.78% of the companies in the same industry.
• The Gross Margin of JAZZ (89.37%) is better than 92.39% of its industry peers.

How We Gauge 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:

• Looking at the Altman-Z score, with a value of 1.50, JAZZ is in the better half of the industry, outperforming 61.96% of the companies in the same industry.
• JAZZ's Debt to FCF ratio of 5.55 is amongst the best of the industry. JAZZ outperforms 87.50% of its industry peers.
• 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.
• With a decent Current ratio value of 4.26, JAZZ is doing good in the industry, outperforming 61.41% of the companies in the same industry.
• JAZZ has a Quick Ratio of 3.74. This indicates that JAZZ is financially healthy and has no problem in meeting its short term obligations.

Looking at the Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:JAZZ has received 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.
• 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.
• Based on estimates for the next years, JAZZ will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.31% on average per year.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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

Our latest full fundamental report of JAZZ contains the most current fundamental analsysis.

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.