JAZZ PHARMACEUTICALS PLC (JAZZ)
IE00B4Q5ZN47 - Common Stock
Overall JAZZ gets a fundamental rating of 6 out of 10. We evaluated JAZZ against 194 industry peers in the Pharmaceuticals industry. While JAZZ belongs to the best of the industry regarding profitability, 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. 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.
The reported net income has been mixed in the past 5 years: JAZZ reported negative net income in multiple years.
Each year in the past 5 years JAZZ had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.78%, JAZZ belongs to the top of the industry, outperforming 85.94% of the companies in the same industry.
The Return On Equity of JAZZ (11.10%) is better than 89.58% of its industry peers.
JAZZ's Return On Invested Capital of 4.95% is amongst the best of the industry. JAZZ outperforms 81.25% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for JAZZ is significantly below the industry average of 42.22%.
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
JAZZ has a better Profit Margin (11.60%) than 88.02% of its industry peers.
In the last couple of years the Profit Margin of JAZZ has declined.
JAZZ has a better Operating Margin (17.62%) than 85.42% of its industry peers.
JAZZ's Operating Margin has declined in the last couple of years.
JAZZ has a Gross Margin of 89.37%. This is amongst the best in the industry. JAZZ outperforms 93.23% 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.
The number of shares outstanding for JAZZ has been increased compared to 5 years ago.
The debt/assets ratio for JAZZ has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.49, we must say that JAZZ is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.49, JAZZ is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
JAZZ has a debt to FCF ratio of 5.55. This is a neutral value as JAZZ would need 5.55 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 5.55, JAZZ belongs to the best of the industry, outperforming 86.98% of the companies in the same industry.
JAZZ has a Debt/Equity ratio of 1.46. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.46, JAZZ is doing worse than 76.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 5.55 | ||
| Altman-Z | 1.49 |
ROIC/WACC0.81
WACC6.1%
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 better Current ratio (4.26) than 60.42% 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.
JAZZ's Quick ratio of 3.74 is in line compared to the rest of the industry. JAZZ outperforms 59.90% of its industry peers.
| 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.
JAZZ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.00% yearly.
Looking at the last year, JAZZ shows a small growth in Revenue. The Revenue has grown by 5.23% in the last year.
JAZZ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.19% yearly.
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 6.19% on average over the next years.
JAZZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.74% yearly.
EPS Next Y12.28%
EPS Next 2Y9.96%
EPS Next 3Y8.08%
EPS Next 5Y6.19%
Revenue Next Year5.35%
Revenue Next 2Y5.86%
Revenue Next 3Y5.42%
Revenue Next 5Y5.74%
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
A Price/Earnings ratio of 6.38 indicates a rather cheap valuation of JAZZ.
JAZZ's Price/Earnings ratio is rather cheap when compared to the industry. JAZZ is cheaper than 94.27% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, JAZZ is valued rather cheaply.
With a Price/Forward Earnings ratio of 5.65, the valuation of JAZZ can be described as very cheap.
JAZZ's Price/Forward Earnings ratio is rather cheap when compared to the industry. JAZZ is cheaper than 94.27% of the companies 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 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.38 | ||
| Fwd PE | 5.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, JAZZ is valued cheaply inside the industry as 89.06% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of JAZZ indicates a rather cheap valuation: JAZZ is cheaper than 94.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.86 | ||
| EV/EBITDA | 7.61 |
4.3 Compensation for Growth
JAZZ's 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.
PEG (NY)0.52
PEG (5Y)1.06
EPS Next 2Y9.96%
EPS Next 3Y8.08%
5. Dividend
5.1 Amount
JAZZ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
JAZZ PHARMACEUTICALS PLC
NASDAQ:JAZZ (11/21/2024, 5:49:01 PM)
After market: 126.765 +1.67 (+1.33%)125.1
+5.86 (+4.91%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.56B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.38 | ||
| Fwd PE | 5.65 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.52
PEG (5Y)1.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.78% | ||
| ROE | 11.1% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.62% | ||
| PM (TTM) | 11.6% | ||
| GM | 89.37% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.26 | ||
| Quick Ratio | 3.74 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)48.22%
EPS 3Y13.68%
EPS 5Y
EPS Q2Q%
EPS Next Y12.28%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.23%
Revenue growth 3Y17.5%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y