Jazz Pharmaceuticals plc
Jazz Pharmaceuticals plc Fundamental Analysis
Jazz Pharmaceuticals plc (JAZZ) shows moderate financial fundamentals with a PE ratio of -30.88, profit margin of -8.35%, and ROE of -8.82%. The company generates $4.3B in annual revenue with moderate year-over-year growth of 6.12%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 22.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze JAZZ's fundamental strength across five key dimensions:
Efficiency Score
WeakJAZZ struggles to generate sufficient returns from assets.
Valuation Score
ExcellentJAZZ trades at attractive valuation levels.
Growth Score
ExcellentJAZZ delivers strong and consistent growth momentum.
Financial Health Score
ModerateJAZZ shows balanced financial health with some risks.
Profitability Score
WeakJAZZ struggles to sustain strong margins.
Key Financial Metrics
Is JAZZ Expensive or Cheap?
P/E Ratio
JAZZ trades at -30.88 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, JAZZ's PEG of -15.34 indicates potential undervaluation.
Price to Book
The market values Jazz Pharmaceuticals plc at 2.55 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 50.93 times EBITDA. This signals the market has high growth expectations.
How Well Does JAZZ Make Money?
Net Profit Margin
For every $100 in sales, Jazz Pharmaceuticals plc keeps $-8.35 as profit after all expenses.
Operating Margin
Core operations generate 5.26 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-8.82 in profit for every $100 of shareholder equity.
ROA
Jazz Pharmaceuticals plc generates $-3.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Jazz Pharmaceuticals plc generates strong operating cash flow of $1.37B, reflecting robust business health.
Free Cash Flow
Jazz Pharmaceuticals plc generates strong free cash flow of $1.26B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $20.46 in free cash annually.
FCF Yield
JAZZ converts 11.31% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-30.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-15.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.60
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.86
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.09
vs 25 benchmark
ROA
Return on assets percentage
-0.03
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How JAZZ Stacks Against Its Sector Peers
| Metric | JAZZ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -30.88 | 28.25 | Better (Cheaper) |
| ROE | -8.82% | 780.00% | Weak |
| Net Margin | -8.35% | -20122.00% (disorted) | Weak |
| Debt/Equity | 1.25 | 0.30 | Weak (High Leverage) |
| Current Ratio | 1.86 | 4.66 | Neutral |
| ROA | -3.05% | -14687.00% (disorted) | Weak |
JAZZ outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Jazz Pharmaceuticals plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
72.73%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-1.79%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
65.00%
Industry Style: Defensive, Growth, Innovation
High Growth