168.02 USD
-0.69 (-0.41%)
Taking everything into account, JAZZ scores 4 out of 10 in our fundamental rating. JAZZ was compared to 190 industry peers in the Pharmaceuticals industry. There are concerns on the financial health of JAZZ while its profitability can be described as average. 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
- JAZZ's Return On Assets of -3.24% is fine compared to the rest of the industry. JAZZ outperforms 74.21% of its industry peers.
- Looking at the Return On Equity, with a value of -9.31%, JAZZ is in the better half of the industry, outperforming 74.74% of the companies in the same industry.
- JAZZ has a Return On Invested Capital of 3.95%. This is amongst the best in the industry. JAZZ outperforms 82.11% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for JAZZ is significantly below the industry average of 12.83%.
- The last Return On Invested Capital (3.95%) for JAZZ is above the 3 year average (3.85%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.24% | ||
| ROE | -9.31% | ||
| ROIC | 3.95% |
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's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 10.92%, JAZZ belongs to the top of the industry, outperforming 83.16% of the companies in the same industry.
- In the last couple of years the Operating Margin of JAZZ has declined.
- JAZZ's Gross Margin of 88.49% is amongst the best of the industry. JAZZ outperforms 90.00% of its industry peers.
- JAZZ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.92% | ||
| PM (TTM) | N/A | ||
| GM | 88.49% |
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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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 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.
- JAZZ has a Altman-Z score (1.54) which is comparable to the rest of the industry.
- The Debt to FCF ratio of JAZZ is 4.33, which is a neutral value as it means it would take JAZZ, 4.33 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 4.33, JAZZ belongs to the best of the industry, outperforming 83.68% of the companies in the same industry.
- A Debt/Equity ratio of 1.09 is on the high side and indicates that JAZZ has dependencies on debt financing.
- The Debt to Equity ratio of JAZZ (1.09) is worse than 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 4.33 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.54
WACC7.31%
2.3 Liquidity
- JAZZ has a Current Ratio of 1.65. This is a normal value and indicates that JAZZ is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of JAZZ (1.65) is worse than 68.42% of its industry peers.
- JAZZ has a Quick Ratio of 1.44. This is a normal value and indicates that JAZZ is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.44, JAZZ is not doing good in the industry: 63.68% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
- JAZZ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -58.39%.
- Measured over the past 5 years, JAZZ shows a small growth in Earnings Per Share. The EPS has been growing by 5.47% on average per year.
- JAZZ shows a small growth in Revenue. In the last year, the Revenue has grown by 4.14%.
- JAZZ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.48% yearly.
EPS 1Y (TTM)-58.39%
EPS 3Y9.3%
EPS 5Y5.47%
EPS Q2Q%23%
Revenue 1Y (TTM)4.14%
Revenue growth 3Y9.56%
Revenue growth 5Y13.48%
Sales Q2Q%6.74%
3.2 Future
- JAZZ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.67% yearly.
- The Revenue is expected to grow by 7.06% on average over the next years.
EPS Next Y-61.2%
EPS Next 2Y4.09%
EPS Next 3Y6.32%
EPS Next 5Y7.67%
Revenue Next Year4.66%
Revenue Next 2Y5.44%
Revenue Next 3Y6.29%
Revenue Next 5Y7.06%
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
- A Price/Earnings ratio of 20.59 indicates a rather expensive valuation of JAZZ.
- Compared to the rest of the industry, the Price/Earnings ratio of JAZZ indicates a rather cheap valuation: JAZZ is cheaper than 80.53% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, JAZZ is valued a bit cheaper.
- JAZZ is valuated cheaply with a Price/Forward Earnings ratio of 7.32.
- 92.11% of the companies in the same industry are more expensive than JAZZ, based on the Price/Forward Earnings ratio.
- JAZZ is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.59 | ||
| Fwd PE | 7.32 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of JAZZ indicates a rather cheap valuation: JAZZ is cheaper than 85.26% of the companies listed in the same industry.
- JAZZ's Price/Free Cash Flow ratio is rather cheap when compared to the industry. JAZZ is cheaper than 93.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.24 | ||
| EV/EBITDA | 11.28 |
4.3 Compensation for Growth
- The decent profitability rating of JAZZ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.77
EPS Next 2Y4.09%
EPS Next 3Y6.32%
5. Dividend
5.1 Amount
- JAZZ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
JAZZ PHARMACEUTICALS PLC / JAZZ FAQ
Can you provide the ChartMill fundamental rating for JAZZ PHARMACEUTICALS PLC?
ChartMill assigns a fundamental rating of 4 / 10 to JAZZ.
Can you provide the valuation status for JAZZ PHARMACEUTICALS PLC?
ChartMill assigns a valuation rating of 7 / 10 to JAZZ PHARMACEUTICALS PLC (JAZZ). This can be considered as Undervalued.
Can you provide the profitability details for JAZZ PHARMACEUTICALS PLC?
JAZZ PHARMACEUTICALS PLC (JAZZ) has a profitability rating of 6 / 10.
Can you provide the financial health for JAZZ stock?
The financial health rating of JAZZ PHARMACEUTICALS PLC (JAZZ) is 3 / 10.
What is the expected EPS growth for JAZZ PHARMACEUTICALS PLC (JAZZ) stock?
The Earnings per Share (EPS) of JAZZ PHARMACEUTICALS PLC (JAZZ) is expected to decline by -61.2% in the next year.