Despite its impressive fundamentals,JAZZ PHARMACEUTICALS PLC (NASDAQ:JAZZ) remains undervalued.

Our stock screening tool has pinpointed JAZZ PHARMACEUTICALS PLC (NASDAQ:JAZZ) as an undervalued stock. JAZZ maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Valuation Assessment of JAZZ

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. JAZZ has earned a 9 for valuation:

• JAZZ is valuated cheaply with a Price/Earnings ratio of 5.52.
• 95.45% of the companies in the same industry are more expensive than JAZZ, based on the Price/Earnings ratio.
• The average S&P500 Price/Earnings ratio is at 28.88. JAZZ is valued rather cheaply when compared to this.
• JAZZ is valuated cheaply with a Price/Forward Earnings ratio of 4.92.
• JAZZ's Price/Forward Earnings ratio is rather cheap when compared to the industry. JAZZ is cheaper than 96.46% 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 21.20.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of JAZZ indicates a rather cheap valuation: JAZZ is cheaper than 89.90% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, JAZZ is valued cheaply inside the industry as 96.97% of the companies are valued more expensively.
• 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: JAZZ

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. JAZZ scores a 7 out of 10:

• Looking at the Return On Assets, with a value of 4.66%, JAZZ belongs to the top of the industry, outperforming 88.38% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 13.68%, JAZZ belongs to the top of the industry, outperforming 88.89% 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 82.32% 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 89.90% of the companies in the same industry.
• JAZZ's Operating Margin of 18.06% is amongst the best of the industry. JAZZ outperforms 84.85% of its industry peers.
• JAZZ's Gross Margin of 89.05% is amongst the best of the industry. JAZZ outperforms 89.90% of its industry peers.

Health Analysis for JAZZ

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. JAZZ has received a 5 out of 10:

• JAZZ's Altman-Z score of 1.57 is fine compared to the rest of the industry. JAZZ outperforms 65.15% of its industry peers.
• JAZZ's Debt to FCF ratio of 4.54 is amongst the best of the industry. JAZZ outperforms 85.35% of its industry peers.
• A Current Ratio of 4.46 indicates that JAZZ has no problem at all paying its short term obligations.
• JAZZ has a better Current ratio (4.46) than 69.70% of its industry peers.
• JAZZ has a Quick Ratio of 3.99. This indicates that JAZZ is financially healthy and has no problem in meeting its short term obligations.
• JAZZ's Quick ratio of 3.99 is fine compared to the rest of the industry. JAZZ outperforms 65.66% of its industry peers.

Growth Analysis for JAZZ

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. JAZZ scores 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.

Check the latest full fundamental report of JAZZ for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.