Jazz Pharmaceuticals plc Fundamental Analysis
Jazz Pharmaceuticals plc (JAZZ) shows weak financial fundamentals with a PE ratio of 484.27, profit margin of 0.66%, and ROE of 0.71%. The company generates $4.5B in annual revenue with moderate year-over-year growth of 4.88%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.1/100 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
ModerateJAZZ shows balanced valuation metrics.
Growth Score
WeakJAZZ faces weak or negative growth trends.
Financial Health Score
ModerateJAZZ shows balanced financial health with some risks.
Profitability Score
ModerateJAZZ maintains healthy but balanced margins.
Key Financial Metrics
Is JAZZ Expensive or Cheap?
P/E Ratio
JAZZ trades at 484.27 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, JAZZ's PEG of -1.64 indicates potential undervaluation.
Price to Book
The market values Jazz Pharmaceuticals plc at 3.15 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 27.58 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 $0.66 as profit after all expenses.
Operating Margin
Core operations generate 11.13 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.71 in profit for every $100 of shareholder equity.
ROA
Jazz Pharmaceuticals plc generates $0.25 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 $1.35B, 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 $20.12 in free cash annually.
FCF Yield
JAZZ converts 8.60% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
484.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.64
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.15
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.26
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.20
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.04
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.007
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How JAZZ Stacks Against Its Sector Peers
| Metric | JAZZ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 484.27 | 29.01 | Worse (Expensive) |
| ROE | 0.71% | 730.00% | Weak |
| Net Margin | 0.66% | -53564.00% (disorted) | Weak |
| Debt/Equity | 1.20 | 0.39 | Weak (High Leverage) |
| Current Ratio | 2.04 | 4.47 | Strong Liquidity |
| ROA | 0.25% | -18932.00% (disorted) | Weak |
JAZZ outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
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
64.95%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-236.35%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
37.67%
Industry Style: Defensive, Growth, Innovation
High Growth