JAZZ PHARMACEUTICALS PLC (JAZZ) Stock Fundamental Analysis
NASDAQ:JAZZ - Nasdaq - IE00B4Q5ZN47 - Common Stock - Currency: USD
JAZZ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 194 industry peers in the Pharmaceuticals industry. While JAZZ has a great profitability rating, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on JAZZ. These ratings could make JAZZ a good candidate for value investing.
1. Profitability
1.1 Basic Checks
JAZZ had positive earnings in the past year.
In the past year JAZZ had a positive cash flow from operations.
In multiple years JAZZ reported negative net income over the last 5 years.
Each year in the past 5 years JAZZ had a positive operating cash flow.
1.2 Ratios
JAZZ has a better Return On Assets (4.18%) than 86.60% of its industry peers.
With an excellent Return On Equity value of 11.55%, JAZZ belongs to the best of the industry, outperforming 87.63% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.55%, JAZZ belongs to the top of the industry, outperforming 81.96% of the companies in the same industry.
JAZZ had an Average Return On Invested Capital over the past 3 years of 3.85%. This is significantly below the industry average of 14.87%.
The 3 year average ROIC (3.85%) for JAZZ is below the current ROIC(4.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.18% | ||
| ROE | 11.55% | ||
| ROIC | 4.55% |
ROA(3y)2.08%
ROA(5y)1.44%
ROE(3y)5.84%
ROE(5y)3.15%
ROIC(3y)3.85%
ROIC(5y)4.24%
1.3 Margins
Looking at the Profit Margin, with a value of 11.86%, JAZZ belongs to the top of the industry, outperforming 88.14% of the companies in the same industry.
JAZZ's Profit Margin has declined in the last couple of years.
JAZZ has a better Operating Margin (14.63%) than 84.54% of its industry peers.
JAZZ's Operating Margin has declined in the last couple of years.
The Gross Margin of JAZZ (88.81%) is better than 92.27% of its industry peers.
In the last couple of years the Gross Margin of JAZZ has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.63% | ||
| PM (TTM) | 11.86% | ||
| GM | 88.81% |
OM growth 3Y11.44%
OM growth 5Y-6.23%
PM growth 3YN/A
PM growth 5Y-10.68%
GM growth 3Y1.26%
GM growth 5Y-1.09%
2. Health
2.1 Basic Checks
JAZZ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
JAZZ has less shares outstanding than it did 1 year ago.
The number of shares outstanding for JAZZ has been increased compared to 5 years ago.
Compared to 1 year ago, JAZZ has a worse debt to assets ratio.
2.2 Solvency
JAZZ has an Altman-Z score of 1.49. This is a bad value and indicates that JAZZ is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of JAZZ (1.49) is better than 62.37% of its industry peers.
JAZZ has a debt to FCF ratio of 3.61. This is a good value and a sign of high solvency as JAZZ would need 3.61 years to pay back of all of its debts.
JAZZ has a better Debt to FCF ratio (3.61) than 89.18% of its industry peers.
JAZZ has a Debt/Equity ratio of 1.28. This is a high value indicating a heavy dependency on external financing.
JAZZ's Debt to Equity ratio of 1.28 is on the low side compared to the rest of the industry. JAZZ is outperformed by 74.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 3.61 | ||
| Altman-Z | 1.49 |
ROIC/WACC0.67
WACC6.84%
2.3 Liquidity
JAZZ has a Current Ratio of 3.38. This indicates that JAZZ is financially healthy and has no problem in meeting its short term obligations.
JAZZ has a Current ratio (3.38) which is comparable to the rest of the industry.
JAZZ has a Quick Ratio of 2.97. This indicates that JAZZ is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.97, JAZZ is in line with its industry, outperforming 57.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.38 | ||
| Quick Ratio | 2.97 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.42% over the past year.
JAZZ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.47% yearly.
JAZZ shows a small growth in Revenue. In the last year, the Revenue has grown by 5.76%.
The Revenue has been growing by 13.48% on average over the past years. This is quite good.
EPS 1Y (TTM)18.42%
EPS 3Y9.3%
EPS 5Y5.47%
EPS Q2Q%-37.31%
Revenue 1Y (TTM)5.76%
Revenue growth 3Y9.56%
Revenue growth 5Y13.48%
Sales Q2Q%-0.46%
3.2 Future
Based on estimates for the next years, JAZZ will show a small growth in Earnings Per Share. The EPS will grow by 6.11% on average per year.
Based on estimates for the next years, JAZZ will show a small growth in Revenue. The Revenue will grow by 5.61% on average per year.
EPS Next Y-77.07%
EPS Next 2Y1.93%
EPS Next 3Y3.94%
EPS Next 5Y6.11%
Revenue Next Year4.61%
Revenue Next 2Y4.73%
Revenue Next 3Y5.41%
Revenue Next 5Y5.61%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 5.46, the valuation of JAZZ can be described as very cheap.
Based on the Price/Earnings ratio, JAZZ is valued cheaply inside the industry as 96.91% of the companies are valued more expensively.
JAZZ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
With a Price/Forward Earnings ratio of 5.01, the valuation of JAZZ can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of JAZZ indicates a rather cheap valuation: JAZZ is cheaper than 94.85% of the companies listed in the same industry.
JAZZ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.46 | ||
| Fwd PE | 5.01 |
4.2 Price Multiples
JAZZ's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. JAZZ is cheaper than 92.27% 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 97.94% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.48 | ||
| EV/EBITDA | 6.97 |
4.3 Compensation for Growth
JAZZ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1
EPS Next 2Y1.93%
EPS Next 3Y3.94%
5. Dividend
5.1 Amount
JAZZ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
110.27
-2.21 (-1.96%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners99.99%
Inst Owner Change0.16%
Ins Owners2.4%
Ins Owner Change4.53%
Market Cap6.67B
Analysts85
Price Target193.05 (75.07%)
Short Float %9.74%
Short Ratio5.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-26.66%
Min EPS beat(2)-64.64%
Max EPS beat(2)11.32%
EPS beat(4)3
Avg EPS beat(4)-6.65%
Min EPS beat(4)-64.64%
Max EPS beat(4)17.85%
EPS beat(8)3
Avg EPS beat(8)-9.1%
EPS beat(12)5
Avg EPS beat(12)-16.13%
EPS beat(16)8
Avg EPS beat(16)-9.34%
Revenue beat(2)1
Avg Revenue beat(2)-5%
Min Revenue beat(2)-10.66%
Max Revenue beat(2)0.66%
Revenue beat(4)1
Avg Revenue beat(4)-2.55%
Min Revenue beat(4)-10.66%
Max Revenue beat(4)0.66%
Revenue beat(8)1
Avg Revenue beat(8)-2.52%
Revenue beat(12)2
Avg Revenue beat(12)-2.11%
Revenue beat(16)3
Avg Revenue beat(16)-1.98%
PT rev (1m)2.24%
PT rev (3m)-0.46%
EPS NQ rev (1m)-1.91%
EPS NQ rev (3m)-230.42%
EPS NY rev (1m)-4.9%
EPS NY rev (3m)-79.65%
Revenue NQ rev (1m)-1.02%
Revenue NQ rev (3m)-2.03%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.46 | ||
| Fwd PE | 5.01 | ||
| P/S | 1.64 | ||
| P/FCF | 4.48 | ||
| P/OCF | 4.28 | ||
| P/B | 1.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.97 |
EPS(TTM)20.19
EY18.31%
EPS(NY)22.02
Fwd EY19.97%
FCF(TTM)24.6
FCFY22.31%
OCF(TTM)25.76
OCFY23.36%
SpS67.18
BVpS69
TBVpS-38.06
PEG (NY)N/A
PEG (5Y)1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.18% | ||
| ROE | 11.55% | ||
| ROCE | 5.77% | ||
| ROIC | 4.55% | ||
| ROICexc | 6.07% | ||
| ROICexgc | 37.22% | ||
| OM | 14.63% | ||
| PM (TTM) | 11.86% | ||
| GM | 88.81% | ||
| FCFM | 36.62% |
ROA(3y)2.08%
ROA(5y)1.44%
ROE(3y)5.84%
ROE(5y)3.15%
ROIC(3y)3.85%
ROIC(5y)4.24%
ROICexc(3y)4.89%
ROICexc(5y)5.68%
ROICexgc(3y)31.42%
ROICexgc(5y)35.77%
ROCE(3y)4.87%
ROCE(5y)5.36%
ROICexcg growth 3Y32.25%
ROICexcg growth 5Y-7.79%
ROICexc growth 3Y35.45%
ROICexc growth 5Y-6.86%
OM growth 3Y11.44%
OM growth 5Y-6.23%
PM growth 3YN/A
PM growth 5Y-10.68%
GM growth 3Y1.26%
GM growth 5Y-1.09%
F-Score7
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 3.61 | ||
| Debt/EBITDA | 4.25 | ||
| Cap/Depr | 10.59% | ||
| Cap/Sales | 1.72% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 124.07% | ||
| Profit Quality | 308.67% | ||
| Current Ratio | 3.38 | ||
| Quick Ratio | 2.97 | ||
| Altman-Z | 1.49 |
F-Score7
WACC6.84%
ROIC/WACC0.67
Cap/Depr(3y)31.05%
Cap/Depr(5y)47.54%
Cap/Sales(3y)5.31%
Cap/Sales(5y)6.69%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)18.42%
EPS 3Y9.3%
EPS 5Y5.47%
EPS Q2Q%-37.31%
EPS Next Y-77.07%
EPS Next 2Y1.93%
EPS Next 3Y3.94%
EPS Next 5Y6.11%
Revenue 1Y (TTM)5.76%
Revenue growth 3Y9.56%
Revenue growth 5Y13.48%
Sales Q2Q%-0.46%
Revenue Next Year4.61%
Revenue Next 2Y4.73%
Revenue Next 3Y5.41%
Revenue Next 5Y5.61%
EBIT growth 1Y3.58%
EBIT growth 3Y22.09%
EBIT growth 5Y6.42%
EBIT Next Year-56.13%
EBIT Next 3Y5.46%
EBIT Next 5Y7.67%
FCF growth 1Y62.14%
FCF growth 3Y22.51%
FCF growth 5Y17.8%
OCF growth 1Y12.63%
OCF growth 3Y21.49%
OCF growth 5Y12.45%