JAZZ PHARMACEUTICALS PLC (JAZZ) Stock Fundamental Analysis
NASDAQ:JAZZ - Nasdaq - IE00B4Q5ZN47 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to JAZZ. 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
JAZZ has a Return On Assets of 4.18%. This is amongst the best in the industry. JAZZ outperforms 86.36% of its industry peers.
JAZZ has a Return On Equity of 11.55%. This is amongst the best in the industry. JAZZ outperforms 87.37% of its industry peers.
JAZZ has a better Return On Invested Capital (4.55%) than 81.31% of its industry peers.
JAZZ had an Average Return On Invested Capital over the past 3 years of 3.85%. This is significantly below the industry average of 42.34%.
The 3 year average ROIC (3.85%) for JAZZ is below the current ROIC(4.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.18% | ||
| ROE | 11.55% | ||
| ROIC | 4.55% |
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
With an excellent Profit Margin value of 11.86%, JAZZ belongs to the best of the industry, outperforming 87.88% of the companies in the same industry.
In the last couple of years the Profit Margin of JAZZ has declined.
JAZZ has a better Operating Margin (14.63%) than 84.34% of its industry peers.
JAZZ's Operating Margin has declined in the last couple of years.
JAZZ has a Gross Margin of 88.81%. This is amongst the best in the industry. JAZZ outperforms 90.40% of its industry peers.
JAZZ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.63% | ||
| PM (TTM) | 11.86% | ||
| GM | 88.81% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so JAZZ is destroying value.
JAZZ has less shares outstanding than it did 1 year ago.
JAZZ has more shares outstanding than it did 5 years ago.
The debt/assets ratio for JAZZ is higher 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.
With a decent Altman-Z score value of 1.49, JAZZ is doing good in the industry, outperforming 65.66% of the companies in the same industry.
JAZZ has a debt to FCF ratio of 3.61. This is a good value and a sign of high solvency as JAZZ would need 3.61 years to pay back of all of its debts.
The Debt to FCF ratio of JAZZ (3.61) is better than 88.38% of its industry peers.
A Debt/Equity ratio of 1.28 is on the high side and indicates that JAZZ has dependencies on debt financing.
JAZZ's Debt to Equity ratio of 1.28 is on the low side compared to the rest of the industry. JAZZ is outperformed by 73.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 3.61 | ||
| Altman-Z | 1.49 |
ROIC/WACC0.67
WACC6.81%
2.3 Liquidity
JAZZ has a Current Ratio of 3.38. This indicates that JAZZ is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.38, JAZZ is in line with its industry, outperforming 59.09% of the companies in the same industry.
JAZZ has a Quick Ratio of 2.97. This indicates that JAZZ is financially healthy and has no problem in meeting its short term obligations.
JAZZ has a Quick ratio (2.97) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.38 | ||
| Quick Ratio | 2.97 |
3. Growth
3.1 Past
JAZZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.42%, which is quite good.
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 5.76% in the last year.
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)18.42%
EPS 3Y9.3%
EPS 5Y5.47%
EPS Q2Q%-37.31%
Revenue 1Y (TTM)5.76%
Revenue growth 3Y9.56%
Revenue growth 5Y13.48%
Sales Q2Q%-0.46%
3.2 Future
JAZZ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.83% yearly.
Based on estimates for the next years, JAZZ will show a small growth in Revenue. The Revenue will grow by 5.31% on average per year.
EPS Next Y-75.89%
EPS Next 2Y1.64%
EPS Next 3Y4.24%
EPS Next 5Y5.83%
Revenue Next Year4.54%
Revenue Next 2Y4.38%
Revenue Next 3Y5.07%
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.
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
The Price/Earnings ratio is 5.34, which indicates a rather cheap valuation of JAZZ.
JAZZ's Price/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/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.91.
A Price/Forward Earnings ratio of 4.93 indicates a rather cheap valuation of JAZZ.
95.96% of the companies in the same industry are more expensive than JAZZ, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.85. JAZZ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.34 | ||
| Fwd PE | 4.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, JAZZ is valued cheaper than 89.90% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, JAZZ is valued cheaper than 97.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.46 | ||
| EV/EBITDA | 6.97 |
4.3 Compensation for Growth
JAZZ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.98
EPS Next 2Y1.64%
EPS Next 3Y4.24%
5. Dividend
5.1 Amount
JAZZ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
107.82
-0.45 (-0.42%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners100.43%
Inst Owner Change1.56%
Ins Owners2.39%
Ins Owner Change4.49%
Market Cap6.64B
Analysts83.33
Price Target192.03 (78.1%)
Short Float %8.93%
Short Ratio3.88
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)1
Avg EPS beat(2)-26.66%
Min EPS beat(2)-64.64%
Max EPS beat(2)11.32%
EPS beat(4)3
Avg EPS beat(4)-6.65%
Min EPS beat(4)-64.64%
Max EPS beat(4)17.85%
EPS beat(8)3
Avg EPS beat(8)-9.1%
EPS beat(12)5
Avg EPS beat(12)-16.13%
EPS beat(16)8
Avg EPS beat(16)-9.34%
Revenue beat(2)1
Avg Revenue beat(2)-5%
Min Revenue beat(2)-10.66%
Max Revenue beat(2)0.66%
Revenue beat(4)1
Avg Revenue beat(4)-2.55%
Min Revenue beat(4)-10.66%
Max Revenue beat(4)0.66%
Revenue beat(8)1
Avg Revenue beat(8)-2.52%
Revenue beat(12)2
Avg Revenue beat(12)-2.11%
Revenue beat(16)3
Avg Revenue beat(16)-1.98%
PT rev (1m)-0.98%
PT rev (3m)4.17%
EPS NQ rev (1m)-227.53%
EPS NQ rev (3m)-233.99%
EPS NY rev (1m)-78.51%
EPS NY rev (3m)-77.15%
Revenue NQ rev (1m)-1.1%
Revenue NQ rev (3m)-1.56%
Revenue NY rev (1m)-1.55%
Revenue NY rev (3m)-2.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.34 | ||
| Fwd PE | 4.93 | ||
| P/S | 1.63 | ||
| P/FCF | 4.46 | ||
| P/OCF | 4.26 | ||
| P/B | 1.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.97 |
EPS(TTM)20.19
EY18.73%
EPS(NY)21.89
Fwd EY20.3%
FCF(TTM)24.15
FCFY22.4%
OCF(TTM)25.29
OCFY23.45%
SpS65.96
BVpS67.74
TBVpS-37.37
PEG (NY)N/A
PEG (5Y)0.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.18% | ||
| ROE | 11.55% | ||
| ROCE | 5.77% | ||
| ROIC | 4.55% | ||
| ROICexc | 6.07% | ||
| ROICexgc | 37.22% | ||
| OM | 14.63% | ||
| PM (TTM) | 11.86% | ||
| GM | 88.81% | ||
| FCFM | 36.62% |
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-Score7
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 3.61 | ||
| Debt/EBITDA | 4.25 | ||
| Cap/Depr | 10.59% | ||
| Cap/Sales | 1.72% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 124.07% | ||
| Profit Quality | 308.67% | ||
| Current Ratio | 3.38 | ||
| Quick Ratio | 2.97 | ||
| Altman-Z | 1.49 |
F-Score7
WACC6.81%
ROIC/WACC0.67
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)18.42%
EPS 3Y9.3%
EPS 5Y5.47%
EPS Q2Q%-37.31%
EPS Next Y-75.89%
EPS Next 2Y1.64%
EPS Next 3Y4.24%
EPS Next 5Y5.83%
Revenue 1Y (TTM)5.76%
Revenue growth 3Y9.56%
Revenue growth 5Y13.48%
Sales Q2Q%-0.46%
Revenue Next Year4.54%
Revenue Next 2Y4.38%
Revenue Next 3Y5.07%
Revenue Next 5Y5.31%
EBIT growth 1Y3.58%
EBIT growth 3Y22.09%
EBIT growth 5Y6.42%
EBIT Next Year13.71%
EBIT Next 3Y6.85%
EBIT Next 5Y9.04%
FCF growth 1Y62.14%
FCF growth 3Y22.51%
FCF growth 5Y17.8%
OCF growth 1Y12.63%
OCF growth 3Y21.49%
OCF growth 5Y12.45%