For those who appreciate value investing, JAZZ PHARMACEUTICALS PLC (NASDAQ:JAZZ) is a compelling option with its solid fundamentals.

Uncover the hidden value in JAZZ PHARMACEUTICALS PLC (NASDAQ:JAZZ) as our stock screening tool recommends it as an undervalued choice. JAZZ maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Valuation Analysis for JAZZ

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. JAZZ scores a 8 out of 10:

• Based on the Price/Earnings ratio of 6.51, the valuation of JAZZ can be described as very cheap.
• 96.35% of the companies in the same industry are more expensive than JAZZ, based on the Price/Earnings ratio.
• JAZZ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.90.
• With a Price/Forward Earnings ratio of 6.16, the valuation of JAZZ can be described as very cheap.
• Based on the Price/Forward Earnings ratio, JAZZ is valued cheaply inside the industry as 94.27% of the companies are valued more expensively.
• JAZZ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.58.
• Based on the Enterprise Value to EBITDA ratio, JAZZ is valued cheaper than 87.50% of the companies in the same industry.
• JAZZ's Price/Free Cash Flow ratio is rather cheap when compared to the industry. JAZZ is cheaper than 94.79% of the companies in the same industry.
• JAZZ has a very decent profitability rating, which may justify a higher PE ratio.

Profitability Assessment of 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. JAZZ was assigned a score of 7 for profitability:

• JAZZ has a Return On Assets of 4.66%. This is amongst the best in the industry. JAZZ outperforms 88.02% of its industry peers.
• Looking at the Return On Equity, with a value of 13.68%, JAZZ belongs to the top of the industry, outperforming 90.10% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 5.29%, JAZZ belongs to the best of the industry, outperforming 82.29% of the companies in the same industry.
• The 3 year average ROIC (3.85%) for JAZZ is below the current ROIC(5.29%), indicating increased profibility in the last year.
• With an excellent Profit Margin value of 13.77%, JAZZ belongs to the best of the industry, outperforming 89.58% of the companies in the same industry.
• With an excellent Operating Margin value of 18.06%, JAZZ belongs to the best of the industry, outperforming 84.90% of the companies in the same industry.
• JAZZ has a Gross Margin of 89.05%. This is amongst the best in the industry. JAZZ outperforms 91.67% of its industry peers.

Health Examination for 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 JAZZ, the assigned 5 for health provides valuable insights:

• With a decent Altman-Z score value of 1.66, JAZZ is doing good in the industry, outperforming 65.63% of the companies in the same industry.
• JAZZ's Debt to FCF ratio of 4.54 is amongst the best of the industry. JAZZ outperforms 86.98% of its industry peers.
• JAZZ has a Current Ratio of 4.46. This indicates that JAZZ is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Current ratio, with a value of 4.46, JAZZ is in the better half of the industry, outperforming 63.54% of the companies in the same industry.
• A Quick Ratio of 3.99 indicates that JAZZ has no problem at all paying its short term obligations.

Unpacking JAZZ's Growth Rating

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. JAZZ has received a 4 out of 10:

• The Earnings Per Share has grown by an nice 15.67% over the past year.
• JAZZ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.48% yearly.

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

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.