JAZZ PHARMACEUTICALS PLC (JAZZ) Stock Fundamental Analysis
NASDAQ:JAZZ - Nasdaq - IE00B4Q5ZN47 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to JAZZ. JAZZ was compared to 194 industry peers in the Pharmaceuticals industry. JAZZ scores excellent on profitability, but there are some minor concerns on its financial health. JAZZ scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, JAZZ could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year JAZZ was profitable.
In the past year JAZZ had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: JAZZ reported negative net income in multiple years.
JAZZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of JAZZ (3.78%) is better than 86.49% of its industry peers.
JAZZ's Return On Equity of 11.10% is amongst the best of the industry. JAZZ outperforms 89.19% of its industry peers.
The Return On Invested Capital of JAZZ (4.95%) is better than 81.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for JAZZ is significantly below the industry average of 44.04%.
The 3 year average ROIC (3.02%) for JAZZ is below the current ROIC(4.95%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.78% | ||
| ROE | 11.1% | ||
| ROIC | 4.95% |
ROA(3y)-0.37%
ROA(5y)2.4%
ROE(3y)-1.49%
ROE(5y)3.77%
ROIC(3y)3.02%
ROIC(5y)4.82%
1.3 Margins
Looking at the Profit Margin, with a value of 11.60%, JAZZ belongs to the top of the industry, outperforming 87.57% of the companies in the same industry.
In the last couple of years the Profit Margin of JAZZ has declined.
JAZZ's Operating Margin of 17.62% is amongst the best of the industry. JAZZ outperforms 84.86% of its industry peers.
In the last couple of years the Operating Margin of JAZZ has declined.
JAZZ has a Gross Margin of 89.37%. This is amongst the best in the industry. JAZZ outperforms 92.43% of its industry peers.
JAZZ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.62% | ||
| PM (TTM) | 11.6% | ||
| GM | 89.37% |
OM growth 3Y-6.66%
OM growth 5Y-12.64%
PM growth 3Y2.34%
PM growth 5Y-14.48%
GM growth 3Y-1.83%
GM growth 5Y-1.08%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so JAZZ is destroying value.
The number of shares outstanding for JAZZ has been reduced compared to 1 year ago.
Compared to 5 years ago, JAZZ has more shares outstanding
The debt/assets ratio for JAZZ has been reduced compared to a year ago.
2.2 Solvency
JAZZ has an Altman-Z score of 1.56. 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 (1.56) is better than 64.32% of its industry peers.
The Debt to FCF ratio of JAZZ is 5.55, which is a neutral value as it means it would take JAZZ, 5.55 years of fcf income to pay off all of its debts.
JAZZ has a Debt to FCF ratio of 5.55. This is amongst the best in the industry. JAZZ outperforms 85.95% of its industry peers.
A Debt/Equity ratio of 1.46 is on the high side and indicates that JAZZ has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.46, JAZZ is doing worse than 77.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 5.55 | ||
| Altman-Z | 1.56 |
ROIC/WACC0.78
WACC6.33%
2.3 Liquidity
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.
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.
With a Quick ratio value of 3.74, JAZZ perfoms like the industry average, outperforming 59.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.26 | ||
| Quick Ratio | 3.74 |
3. Growth
3.1 Past
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.
The Earnings Per Share has been growing slightly by 6.00% on average over the past years.
Looking at the last year, JAZZ shows a small growth in Revenue. The Revenue has grown by 5.23% in the last year.
The Revenue has been growing by 15.19% on average over the past years. This is quite good.
EPS 1Y (TTM)48.22%
EPS 3Y13.68%
EPS 5Y6%
EPS Q2Q%36.57%
Revenue 1Y (TTM)5.23%
Revenue growth 3Y17.5%
Revenue growth 5Y15.19%
Sales Q2Q%8.52%
3.2 Future
The Earnings Per Share is expected to grow by 8.13% on average over the next years. This is quite good.
JAZZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.77% yearly.
EPS Next Y13.51%
EPS Next 2Y10.46%
EPS Next 3Y7.76%
EPS Next 5Y8.13%
Revenue Next Year5.45%
Revenue Next 2Y6.19%
Revenue Next 3Y5.59%
Revenue Next 5Y5.77%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.94, which indicates a rather cheap valuation of JAZZ.
Based on the Price/Earnings ratio, JAZZ is valued cheaply inside the industry as 95.68% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.63. JAZZ is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.08 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 94.59% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of JAZZ to the average of the S&P500 Index (22.68), we can say JAZZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.94 | ||
| Fwd PE | 6.08 |
4.2 Price Multiples
JAZZ's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. JAZZ is cheaper than 88.11% of the companies in the same industry.
94.59% of the companies in the same industry are more expensive than JAZZ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.46 | ||
| EV/EBITDA | 8.38 |
4.3 Compensation for Growth
The 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.
PEG (NY)0.51
PEG (5Y)1.16
EPS Next 2Y10.46%
EPS Next 3Y7.76%
5. Dividend
5.1 Amount
JAZZ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
136.01
-0.64 (-0.47%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners96.94%
Inst Owner Change1.82%
Ins Owners2.36%
Ins Owner Change0.84%
Market Cap8.22B
Analysts82.4
Price Target184.34 (35.53%)
Short Float %7.2%
Short Ratio6.94
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)2
Avg EPS beat(2)13.36%
Min EPS beat(2)8.88%
Max EPS beat(2)17.85%
EPS beat(4)2
Avg EPS beat(4)-3.87%
Min EPS beat(4)-37.13%
Max EPS beat(4)17.85%
EPS beat(8)2
Avg EPS beat(8)-18.7%
EPS beat(12)5
Avg EPS beat(12)-10.98%
EPS beat(16)8
Avg EPS beat(16)-6.21%
Revenue beat(2)0
Avg Revenue beat(2)-0.1%
Min Revenue beat(2)-0.19%
Max Revenue beat(2)-0.02%
Revenue beat(4)0
Avg Revenue beat(4)-2.1%
Min Revenue beat(4)-7.3%
Max Revenue beat(4)-0.02%
Revenue beat(8)0
Avg Revenue beat(8)-1.84%
Revenue beat(12)2
Avg Revenue beat(12)-1.68%
Revenue beat(16)3
Avg Revenue beat(16)-1.36%
PT rev (1m)0%
PT rev (3m)1.13%
EPS NQ rev (1m)0.75%
EPS NQ rev (3m)-0.58%
EPS NY rev (1m)0.22%
EPS NY rev (3m)1.1%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.94 | ||
| Fwd PE | 6.08 | ||
| P/S | 2.06 | ||
| P/FCF | 7.46 | ||
| P/OCF | 7.06 | ||
| P/B | 1.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.38 |
EPS(TTM)19.61
EY14.42%
EPS(NY)22.35
Fwd EY16.43%
FCF(TTM)18.23
FCFY13.4%
OCF(TTM)19.27
OCFY14.17%
SpS66.05
BVpS69
TBVpS-45.95
PEG (NY)0.51
PEG (5Y)1.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.78% | ||
| ROE | 11.1% | ||
| ROCE | 6.27% | ||
| ROIC | 4.95% | ||
| ROICexc | 6.46% | ||
| ROICexgc | 33.51% | ||
| OM | 17.62% | ||
| PM (TTM) | 11.6% | ||
| GM | 89.37% | ||
| FCFM | 27.6% |
ROA(3y)-0.37%
ROA(5y)2.4%
ROE(3y)-1.49%
ROE(5y)3.77%
ROIC(3y)3.02%
ROIC(5y)4.82%
ROICexc(3y)3.45%
ROICexc(5y)6.29%
ROICexgc(3y)24.22%
ROICexgc(5y)39.58%
ROCE(3y)3.82%
ROCE(5y)6.1%
ROICexcg growth 3Y-9.45%
ROICexcg growth 5Y-18.29%
ROICexc growth 3Y-15.61%
ROICexc growth 5Y-12.76%
OM growth 3Y-6.66%
OM growth 5Y-12.64%
PM growth 3Y2.34%
PM growth 5Y-14.48%
GM growth 3Y-1.83%
GM growth 5Y-1.08%
F-Score7
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 5.55 | ||
| Debt/EBITDA | 4.49 | ||
| Cap/Depr | 9.66% | ||
| Cap/Sales | 1.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.98% | ||
| Profit Quality | 237.89% | ||
| Current Ratio | 4.26 | ||
| Quick Ratio | 3.74 | ||
| Altman-Z | 1.56 |
F-Score7
WACC6.33%
ROIC/WACC0.78
Cap/Depr(3y)31.37%
Cap/Depr(5y)55.93%
Cap/Sales(3y)5.4%
Cap/Sales(5y)8.14%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)48.22%
EPS 3Y13.68%
EPS 5Y6%
EPS Q2Q%36.57%
EPS Next Y13.51%
EPS Next 2Y10.46%
EPS Next 3Y7.76%
EPS Next 5Y8.13%
Revenue 1Y (TTM)5.23%
Revenue growth 3Y17.5%
Revenue growth 5Y15.19%
Sales Q2Q%8.52%
Revenue Next Year5.45%
Revenue Next 2Y6.19%
Revenue Next 3Y5.59%
Revenue Next 5Y5.77%
EBIT growth 1Y265.16%
EBIT growth 3Y9.68%
EBIT growth 5Y0.62%
EBIT Next Year6.91%
EBIT Next 3Y5.28%
EBIT Next 5Y8.56%
FCF growth 1Y11.97%
FCF growth 3Y26.33%
FCF growth 5Y9.47%
OCF growth 1Y5.14%
OCF growth 3Y6.67%
OCF growth 5Y6.45%