NASDAQ:JAZZ is probably undervalued for the fundamentals it is displaying.

Discover JAZZ PHARMACEUTICALS PLC (NASDAQ:JAZZ)—an undervalued stock our stock screener has picked out. NASDAQ:JAZZ demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Looking at the Valuation

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 6.90.
• Based on the Price/Earnings ratio, JAZZ is valued cheaper than 96.22% of the companies in the same industry.
• JAZZ is valuated cheaply when we compare the Price/Earnings ratio to 30.43, which is the current average of the S&P500 Index.
• The Price/Forward Earnings ratio is 6.06, which indicates a rather cheap valuation of JAZZ.
• 95.14% of the companies in the same industry are more expensive than JAZZ, based on the Price/Forward Earnings ratio.
• JAZZ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.78.
• 89.73% of the companies in the same industry are more expensive than JAZZ, based on the Enterprise Value to EBITDA ratio.
• 94.59% 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.

Evaluating Profitability: NASDAQ:JAZZ

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:

• JAZZ has a better Return On Assets (3.78%) than 86.49% of its industry peers.
• With an excellent Return On Equity value of 11.10%, JAZZ belongs to the best of the industry, outperforming 89.19% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 4.95%, JAZZ belongs to the top of the industry, outperforming 81.62% of the companies in the same industry.
• The last Return On Invested Capital (4.95%) for JAZZ is above the 3 year average (3.02%), which is a sign of increasing profitability.
• With an excellent Profit Margin value of 11.60%, JAZZ belongs to the best of the industry, outperforming 87.57% of the companies in the same industry.
• JAZZ has a Operating Margin of 17.62%. This is amongst the best in the industry. JAZZ outperforms 84.86% of its industry peers.
• JAZZ has a Gross Margin of 89.37%. This is amongst the best in the industry. JAZZ outperforms 92.43% of its industry peers.

Health Insights: 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:

• With a decent Altman-Z score value of 1.56, JAZZ is doing good in the industry, outperforming 63.24% of the companies in the same industry.
• The Debt to FCF ratio of JAZZ (5.55) is better than 85.95% of its industry peers.
• A Current Ratio of 4.26 indicates that JAZZ has no problem at all paying its short term obligations.
• JAZZ has a Current ratio of 4.26. This is in the better half of the industry: JAZZ outperforms 61.08% of its industry peers.
• 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.

Unpacking NASDAQ:JAZZ's Growth Rating

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 48.22% over the past year.
• The Revenue has been growing by 15.19% on average over the past years. This is quite good.
• The Earnings Per Share is expected to grow by 8.13% 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.

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

For an up to date full fundamental analysis you can check the fundamental report of JAZZ

Disclaimer

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.