JAZZ PHARMACEUTICALS PLC (JAZZ)
IE00B4Q5ZN47 - Common Stock
We assign a fundamental rating of 5 out of 10 to JAZZ. JAZZ was compared to 203 industry peers in the Pharmaceuticals industry. While JAZZ is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on JAZZ.
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.
Each year in the past 5 years JAZZ had a positive operating cash flow.
1.2 Ratios
The Return On Assets of JAZZ (0.71%) is better than 81.77% of its industry peers.
JAZZ has a Return On Equity of 2.29%. This is amongst the best in the industry. JAZZ outperforms 83.74% of its industry peers.
JAZZ has a better Return On Invested Capital (1.58%) than 78.33% of its industry peers.
JAZZ had an Average Return On Invested Capital over the past 3 years of 3.51%. This is significantly below the industry average of 16.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.71% | ||
| ROE | 2.29% | ||
| ROIC | 1.58% |
ROA(3y)-0.37%
ROA(5y)3.39%
ROE(3y)-3.02%
ROE(5y)4.8%
ROIC(3y)3.51%
ROIC(5y)5.87%
1.3 Margins
With an excellent Profit Margin value of 2.11%, JAZZ belongs to the best of the industry, outperforming 83.25% of the companies in the same industry.
The Operating Margin of JAZZ (5.08%) is better than 79.31% of its industry peers.
In the last couple of years the Operating Margin of JAZZ has declined.
Looking at the Gross Margin, with a value of 86.94%, JAZZ belongs to the top of the industry, outperforming 91.63% of the companies in the same industry.
In the last couple of years the Gross Margin of JAZZ has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.08% | ||
| PM (TTM) | 2.11% | ||
| GM | 86.94% |
OM growth 3Y-50.56%
OM growth 5Y-38.07%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.24%
GM growth 5Y-1.77%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), JAZZ is destroying value.
JAZZ has more shares outstanding than it did 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
JAZZ has an Altman-Z score of 1.27. This is a bad value and indicates that JAZZ is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.27, JAZZ is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
The Debt to FCF ratio of JAZZ is 6.59, which is on the high side as it means it would take JAZZ, 6.59 years of fcf income to pay off all of its debts.
JAZZ has a Debt to FCF ratio of 6.59. This is amongst the best in the industry. JAZZ outperforms 81.77% of its industry peers.
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 78.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 6.59 | ||
| Altman-Z | 1.27 |
ROIC/WACC0.25
WACC6.3%
2.3 Liquidity
A Current Ratio of 2.06 indicates that JAZZ has no problem at all paying its short term obligations.
The Current ratio of JAZZ (2.06) is worse than 67.49% of its industry peers.
A Quick Ratio of 1.67 indicates that JAZZ should not have too much problems paying its short term obligations.
The Quick ratio of JAZZ (1.67) is worse than 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
The earnings per share for JAZZ have decreased strongly by -24.01% in the last year.
JAZZ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.53% yearly.
Looking at the last year, JAZZ shows a small growth in Revenue. The Revenue has grown by 5.87% in the last year.
JAZZ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.72% yearly.
EPS 1Y (TTM)-24.01%
EPS 3Y-6.84%
EPS 5Y3.53%
EPS growth Q2Q-6.38%
Revenue 1Y (TTM)5.87%
Revenue growth 3Y19.18%
Revenue growth 5Y17.72%
Revenue growth Q2Q3.34%
3.2 Future
The Earnings Per Share is expected to grow by 11.57% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.03% on average over the next years.
EPS Next Y43.22%
EPS Next 2Y24.29%
EPS Next 3Y19.35%
EPS Next 5Y11.57%
Revenue Next Year4.74%
Revenue Next 2Y5.76%
Revenue Next 3Y6.03%
Revenue Next 5Y5.03%
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
JAZZ is valuated reasonably with a Price/Earnings ratio of 9.13.
JAZZ's Price/Earnings ratio is rather cheap when compared to the industry. JAZZ is cheaper than 91.13% of the companies in the same industry.
JAZZ is valuated cheaply when we compare the Price/Earnings ratio to 24.54, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 5.95 indicates a rather cheap valuation of JAZZ.
Based on the Price/Forward Earnings ratio, JAZZ is valued cheaper than 95.57% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.22, JAZZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.13 | ||
| Fwd PE | 5.95 |
4.2 Price Multiples
JAZZ's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. JAZZ is cheaper than 81.77% of the companies in the same industry.
93.10% 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 | 8.76 | ||
| EV/EBITDA | 13.35 |
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.
The decent profitability rating of JAZZ may justify a higher PE ratio.
A more expensive valuation may be justified as JAZZ's earnings are expected to grow with 19.35% in the coming years.
PEG (NY)0.21
PEG (5Y)2.59
EPS Next 2Y24.29%
EPS Next 3Y19.35%
5. Dividend
5.1 Amount
JAZZ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
JAZZ PHARMACEUTICALS PLC
NASDAQ:JAZZ (12/11/2023, 12:45:08 PM)
120.73
+0.31 (+0.26%)
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 Cap7.60B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.13 | ||
| Fwd PE | 5.95 | ||
| 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)0.21
PEG (5Y)2.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.71% | ||
| ROE | 2.29% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.08% | ||
| PM (TTM) | 2.11% | ||
| GM | 86.94% | ||
| 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 Turnover0.34
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 | 2.06 | ||
| Quick Ratio | 1.67 | ||
| 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)
Growth
EPS 1Y (TTM)-24.01%
EPS 3Y-6.84%
EPS 5Y
EPS growth Q2Q
EPS Next Y43.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.87%
Revenue growth 3Y19.18%
Revenue growth 5Y
Revenue growth 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