JAZZ PHARMACEUTICALS PLC (JAZZ) Stock Fundamental Analysis
NASDAQ:JAZZ - Nasdaq - IE00B4Q5ZN47 - Common Stock - Currency: USD
Taking everything into account, JAZZ scores 6 out of 10 in our fundamental rating. JAZZ was compared to 198 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on JAZZ. With these ratings, JAZZ could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
JAZZ had positive earnings in the past year.
JAZZ had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 4.66%, JAZZ belongs to the best of the industry, outperforming 88.94% of the companies in the same industry.
With an excellent Return On Equity value of 13.68%, JAZZ belongs to the best of the industry, outperforming 89.45% of the companies in the same industry.
JAZZ's Return On Invested Capital of 5.29% is amongst the best of the industry. JAZZ outperforms 82.41% 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 41.51%.
The 3 year average ROIC (3.85%) for JAZZ is below the current ROIC(5.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.66% | ||
| ROE | 13.68% | ||
| ROIC | 5.29% |
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
JAZZ has a Profit Margin of 13.77%. This is amongst the best in the industry. JAZZ outperforms 90.45% of its industry peers.
JAZZ's Profit Margin has declined in the last couple of years.
The Operating Margin of JAZZ (18.06%) is better than 84.92% of its industry peers.
JAZZ's Operating Margin has declined in the last couple of years.
The Gross Margin of JAZZ (89.05%) is better than 89.45% 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 | 18.06% | ||
| PM (TTM) | 13.77% | ||
| GM | 89.05% |
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.
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 is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.54, we must say that JAZZ is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of JAZZ (1.54) is better than 65.33% of its industry peers.
The Debt to FCF ratio of JAZZ is 4.54, which is a neutral value as it means it would take JAZZ, 4.54 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.54, JAZZ belongs to the top of the industry, outperforming 85.93% of the companies in the same industry.
JAZZ has a Debt/Equity ratio of 1.49. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of JAZZ (1.49) is worse than 73.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | 4.54 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.79
WACC6.71%
2.3 Liquidity
A Current Ratio of 4.46 indicates that JAZZ has no problem at all paying 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 69.35% 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.
JAZZ's Quick ratio of 3.99 is fine compared to the rest of the industry. JAZZ outperforms 65.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.46 | ||
| Quick Ratio | 3.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.67% over the past year.
The Earnings Per Share has been growing slightly by 5.47% on average over the past years.
Looking at the last year, JAZZ shows a small growth in Revenue. The Revenue has grown by 6.12% in the last year.
Measured over the past years, JAZZ shows a quite strong growth in Revenue. The Revenue has been growing by 13.48% on average per year.
EPS 1Y (TTM)15.67%
EPS 3Y9.3%
EPS 5Y5.47%
EPS Q2Q%31.47%
Revenue 1Y (TTM)6.12%
Revenue growth 3Y9.56%
Revenue growth 5Y13.48%
Sales Q2Q%7.53%
3.2 Future
The Earnings Per Share is expected to grow by 5.83% on average over the next years.
The Revenue is expected to grow by 5.31% on average over the next years.
EPS Next Y12.18%
EPS Next 2Y4.65%
EPS Next 3Y5.12%
EPS Next 5Y5.83%
Revenue Next Year6.18%
Revenue Next 2Y4.82%
Revenue Next 3Y5.34%
Revenue Next 5Y5.31%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
The Price/Earnings ratio is 5.23, which indicates a rather cheap valuation of JAZZ.
95.48% of the companies in the same industry are more expensive than JAZZ, based on the Price/Earnings ratio.
JAZZ is valuated cheaply when we compare the Price/Earnings ratio to 28.78, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 4.66, 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 96.48% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of JAZZ to the average of the S&P500 Index (21.32), we can say JAZZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.23 | ||
| Fwd PE | 4.66 |
4.2 Price Multiples
89.95% of the companies in the same industry are more expensive than JAZZ, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, JAZZ is valued cheaper than 96.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.99 | ||
| EV/EBITDA | 6.65 |
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)0.43
PEG (5Y)0.96
EPS Next 2Y4.65%
EPS Next 3Y5.12%
5. Dividend
5.1 Amount
No dividends for JAZZ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
110.8
+1.82 (+1.67%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners100.43%
Inst Owner Change-43.72%
Ins Owners2.39%
Ins Owner Change4.37%
Market Cap6.73B
Analysts83.33
Price Target192.71 (73.93%)
Short Float %7.28%
Short Ratio3.4
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)14.58%
Min EPS beat(2)11.32%
Max EPS beat(2)17.85%
EPS beat(4)3
Avg EPS beat(4)0.23%
Min EPS beat(4)-37.13%
Max EPS beat(4)17.85%
EPS beat(8)3
Avg EPS beat(8)-2.11%
EPS beat(12)5
Avg EPS beat(12)-11.14%
EPS beat(16)9
Avg EPS beat(16)-5.08%
Revenue beat(2)1
Avg Revenue beat(2)0.24%
Min Revenue beat(2)-0.19%
Max Revenue beat(2)0.66%
Revenue beat(4)1
Avg Revenue beat(4)-1.71%
Min Revenue beat(4)-7.3%
Max Revenue beat(4)0.66%
Revenue beat(8)1
Avg Revenue beat(8)-1.47%
Revenue beat(12)2
Avg Revenue beat(12)-1.76%
Revenue beat(16)3
Avg Revenue beat(16)-1.45%
PT rev (1m)1.35%
PT rev (3m)4.54%
EPS NQ rev (1m)-1.01%
EPS NQ rev (3m)6.9%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)6.88%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.23 | ||
| Fwd PE | 4.66 | ||
| P/S | 1.65 | ||
| P/FCF | 4.99 | ||
| P/OCF | 4.82 | ||
| P/B | 1.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.65 |
EPS(TTM)21.19
EY19.12%
EPS(NY)23.77
Fwd EY21.45%
FCF(TTM)22.19
FCFY20.03%
OCF(TTM)22.99
OCFY20.75%
SpS67
BVpS67.41
TBVpS-39.16
PEG (NY)0.43
PEG (5Y)0.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.66% | ||
| ROE | 13.68% | ||
| ROCE | 6.7% | ||
| ROIC | 5.29% | ||
| ROICexc | 7.27% | ||
| ROICexgc | 38.48% | ||
| OM | 18.06% | ||
| PM (TTM) | 13.77% | ||
| GM | 89.05% | ||
| FCFM | 33.13% |
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-Score8
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | 4.54 | ||
| Debt/EBITDA | 4.36 | ||
| Cap/Depr | 7.28% | ||
| Cap/Sales | 1.18% | ||
| Interest Coverage | 2.33 | ||
| Cash Conversion | 100.07% | ||
| Profit Quality | 240.63% | ||
| Current Ratio | 4.46 | ||
| Quick Ratio | 3.99 | ||
| Altman-Z | 1.54 |
F-Score8
WACC6.71%
ROIC/WACC0.79
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)15.67%
EPS 3Y9.3%
EPS 5Y5.47%
EPS Q2Q%31.47%
EPS Next Y12.18%
EPS Next 2Y4.65%
EPS Next 3Y5.12%
EPS Next 5Y5.83%
Revenue 1Y (TTM)6.12%
Revenue growth 3Y9.56%
Revenue growth 5Y13.48%
Sales Q2Q%7.53%
Revenue Next Year6.18%
Revenue Next 2Y4.82%
Revenue Next 3Y5.34%
Revenue Next 5Y5.31%
EBIT growth 1Y19.35%
EBIT growth 3Y22.09%
EBIT growth 5Y6.42%
EBIT Next Year13.71%
EBIT Next 3Y6.85%
EBIT Next 5Y9.04%
FCF growth 1Y28.48%
FCF growth 3Y22.51%
FCF growth 5Y17.8%
OCF growth 1Y27.83%
OCF growth 3Y21.49%
OCF growth 5Y12.45%