NasdaqGS:JAZZ

Stock Analysis Report

Executive Summary

Jazz Pharmaceuticals plc, a biopharmaceutical company, identifies, develops, and commercializes pharmaceutical products for various unmet medical needs in the United States, Europe, and internationally.

Rewards

Trading at 51.2% below its fair value

Earnings are forecast to grow 15.82% per year

Earnings have grown 23.4% per year over the past 5 years

Risk Analysis

Has a high level of debt

Large one-off items impacting financial results



Snowflake Analysis

Very undervalued with adequate balance sheet.


Similar Companies

Akorn

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Share Price & News

How has Jazz Pharmaceuticals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: JAZZ has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.3%

JAZZ

-0.5%

US Pharmaceuticals

-0.09%

US Market


1 Year Return

17.5%

JAZZ

15.2%

US Pharmaceuticals

23.9%

US Market

Return vs Industry: JAZZ exceeded the US Pharmaceuticals industry which returned 12.6% over the past year.

Return vs Market: JAZZ underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

JAZZIndustryMarket
7 Day-1.3%-0.5%-0.09%
30 Day-3.0%2.3%3.1%
90 Day20.4%15.0%10.4%
1 Year17.5%17.5%18.1%15.2%26.6%23.9%
3 Year24.8%24.8%42.8%32.6%50.9%41.2%
5 Year-12.0%-12.0%30.6%16.8%78.1%58.5%

Price Volatility Vs. Market

How volatile is Jazz Pharmaceuticals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Jazz Pharmaceuticals undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JAZZ ($150.23) is trading below our estimate of fair value ($307.91)

Significantly Below Fair Value: JAZZ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: JAZZ is good value based on its PE Ratio (14.2x) compared to the Pharmaceuticals industry average (24.9x).

PE vs Market: JAZZ is good value based on its PE Ratio (14.2x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: JAZZ is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: JAZZ is good value based on its PB Ratio (2.8x) compared to the US Pharmaceuticals industry average (3.3x).


Next Steps

Future Growth

How is Jazz Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JAZZ's forecast earnings growth (15.8% per year) is above the savings rate (1.7%).

Earnings vs Market: JAZZ's earnings (15.8% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: JAZZ's earnings are forecast to grow, but not significantly.

Revenue vs Market: JAZZ's revenue (2.9% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: JAZZ's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JAZZ's Return on Equity is forecast to be high in 3 years time (22.3%)


Next Steps

Past Performance

How has Jazz Pharmaceuticals performed over the past 5 years?

23.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JAZZ has a large one-off loss of $168.2M impacting its September 30 2019 financial results.

Growing Profit Margin: JAZZ's current net profit margins (29.6%) are higher than last year (28.1%).


Past Earnings Growth Analysis

Earnings Trend: JAZZ's earnings have grown significantly by 23.4% per year over the past 5 years.

Accelerating Growth: JAZZ's earnings growth over the past year (17.1%) is below its 5-year average (23.4% per year).

Earnings vs Industry: JAZZ earnings growth over the past year (17.1%) underperformed the Pharmaceuticals industry 36.8%.


Return on Equity

High ROE: JAZZ's Return on Equity (19.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Jazz Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: JAZZ's short term assets ($1.5B) exceed its short term liabilities ($390.4M).

Long Term Liabilities: JAZZ's short term assets ($1.5B) do not cover its long term liabilities ($2.1B).


Debt to Equity History and Analysis

Debt Level: JAZZ's debt to equity ratio (52.6%) is considered high.

Reducing Debt: JAZZ's debt to equity ratio has reduced from 100% to 52.6% over the past 5 years.

Debt Coverage: JAZZ's debt is well covered by operating cash flow (56.4%).

Interest Coverage: JAZZ's interest payments on its debt are well covered by EBIT (11.5x coverage).


Balance Sheet

Inventory Level: JAZZ has a low level of unsold assets or inventory.

Debt Coverage by Assets: JAZZ's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is Jazz Pharmaceuticals's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate JAZZ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate JAZZ's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if JAZZ's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if JAZZ's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of JAZZ's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Jazz Pharmaceuticals's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

Bruce Cozadd (55yo)

10.8yrs

Tenure

US$11,443,133

Compensation

Mr. Bruce C. Cozadd co-founded Jazz Pharmaceuticals Public Limited Company (also known as Jazzpharmaceuticals, Inc.) in 2003 and has been Chairman and Chief Executive Officer since April 2009. Mr. Cozadd s ...


CEO Compensation Analysis

Compensation vs Market: Bruce's total compensation ($USD11.44M) is above average for companies of similar size in the US market ($USD6.46M).

Compensation vs Earnings: Bruce's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.6yrs

Average Tenure

56yo

Average Age

Experienced Management: JAZZ's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

7.8yrs

Average Tenure

58.5yo

Average Age

Experienced Board: JAZZ's board of directors are considered experienced (7.8 years average tenure).


Insider Trading

Insider Buying: JAZZ insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$12,28709 Dec 19
Patricia Carr
EntityIndividual
Shares82
Max PriceUS$149.84
SellUS$997,77406 Dec 19
Kenneth O’Keefe
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,750
Max PriceUS$147.82
SellUS$600,58914 Aug 19
Paul Treacy
EntityIndividual
Shares4,371
Max PriceUS$137.40
SellUS$98,48112 Aug 19
Patrick Enright
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares726
Max PriceUS$135.65
SellUS$98,48212 Aug 19
Rick Winningham
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares726
Max PriceUS$135.65
SellUS$98,48212 Aug 19
Catherine Sohn
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares726
Max PriceUS$135.65
SellUS$110,82512 Aug 19
Elmar Schnee
EntityIndividual
Shares817
Max PriceUS$135.65
SellUS$98,48212 Aug 19
Norbert Riedel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares726
Max PriceUS$135.65
SellUS$98,48212 Aug 19
Kenneth O’Keefe
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares726
Max PriceUS$135.65
SellUS$106,75612 Aug 19
Heather McSharry
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares787
Max PriceUS$135.65
SellUS$106,75712 Aug 19
Peter Gray
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares787
Max PriceUS$135.65
SellUS$98,48112 Aug 19
Paul Berns
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares726
Max PriceUS$135.65
SellUS$143,53508 Mar 19
Paul Treacy
EntityIndividual
Shares1,060
Max PriceUS$135.41
SellUS$121,92305 Mar 19
Paul Treacy
EntityIndividual
Shares874
Max PriceUS$139.50

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Bruce Cozadd (55yo)

    Co-Founder

    • Tenure: 10.8yrs
    • Compensation: US$11.44m
  • Karen Wilson (56yo)

    Senior VP of Finance & Principal Accounting Officer

    • Tenure: 8yrs
    • Compensation: US$1.24m
  • Dan Swisher (56yo)

    President & COO

    • Tenure: 2yrs
    • Compensation: US$5.75m
  • Mike Miller (62yo)

    Executive Vice President of US Commercial

    • Tenure: 5.8yrs
    • Compensation: US$2.86m
  • Jed Black

    Senior Vice President of Sleep & CNS Medicine

    • Matt Young (50yo)

      Consultant

      • Tenure: 0.3yrs
      • Compensation: US$3.36m
    • Kathee Littrell

      Vice President of Investor Relations

      • Neena Patil

        Senior VP & General Counsel

        • Tenure: 0.5yrs
      • Heidi Manna

        Senior VP & Chief Human Resources Officer

        • Tenure: 1.2yrs
      • Finbar Larkin

        Senior Vice President of Technical Operations

        • Tenure: 0.3yrs

      Board Members

      • Ken O’Keefe (52yo)

        Independent Director

        • Tenure: 16yrs
        • Compensation: US$546.92k
      • Bruce Cozadd (55yo)

        Co-Founder

        • Tenure: 10.8yrs
        • Compensation: US$11.44m
      • Seamus Mulligan (59yo)

        Independent Director

        • Tenure: 8yrs
        • Compensation: US$554.42k
      • Peter Gray (64yo)

        Independent Director

        • Tenure: 6.7yrs
        • Compensation: US$569.42k
      • Norbert Riedel (61yo)

        Independent Director

        • Tenure: 6.7yrs
        • Compensation: US$566.92k
      • Patrick Enright (58yo)

        Independent Director

        • Tenure: 10.5yrs
        • Compensation: US$559.42k
      • Paul Berns (52yo)

        Independent Director

        • Tenure: 10yrs
        • Compensation: US$544.42k
      • Rick Winningham (59yo)

        Lead Independent Director

        • Tenure: 5.7yrs
        • Compensation: US$591.92k
      • Cathy Sohn (66yo)

        Independent Director

        • Tenure: 7.5yrs
        • Compensation: US$554.42k
      • Heather McSharry (57yo)

        Independent Director

        • Tenure: 6.7yrs
        • Compensation: US$579.42k

      Company Information

      Jazz Pharmaceuticals plc's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Jazz Pharmaceuticals plc
      • Ticker: JAZZ
      • Exchange: NasdaqGS
      • Founded:
      • Industry: Pharmaceuticals
      • Sector: Pharmaceuticals & Biotech
      • Market Cap: US$8.435b
      • Shares outstanding: 56.57m
      • Website: https://www.jazzpharma.com

      Number of Employees


      Location

      • Jazz Pharmaceuticals plc
      • Waterloo Exchange
      • Fifth Floor
      • Dublin
      • Co. Dublin
      • 4
      • Ireland

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      JAZZNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2007
      J7ZDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2007

      Biography

      Jazz Pharmaceuticals plc, a biopharmaceutical company, identifies, develops, and commercializes pharmaceutical products for various unmet medical needs in the United States, Europe, and internationally. The company has a portfolio of products and product candidates with a focus in the areas of sleep and hematology/oncology. Its lead marketed products include Xyrem, an oral solution for the treatment of cataplexy and excessive daytime sleepiness (EDS) in adult and pediatric patients with narcolepsy; Erwinaze to treat acute lymphoblastic leukemia; Defitelio for the treatment of adult and pediatric patients with hepatic veno-occlusive disease, a potentially life-threatening complication of hematopoietic stem cell transplantation; and Vyxeos liposome for injection, a product for the treatment of adults with newly-diagnosed therapy-related acute myeloid leukemia. The company also develops Solriamfetol for the treatment of EDS in patients with narcolepsy and obstructive sleep apnea, as well as in Phase II clinical trial for EDS associated with Parkinson’s disease; Vyxeos for acute myeloid leukemia; and JZP-258 to treat EDS and cataplexy with narcolepsy and potential treatment of idiopathic hypersomnia and a chronic neurological disorder. In addition, it sells psychiatry and other products. Jazz Pharmaceuticals plc has licensing and collaboration agreements with ImmunoGen, Inc.; Codiak BioSciences, Inc.; Pfenex, Inc.; and XL-protein GmbH. The company is headquartered in Dublin, Ireland. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/24 00:33
      End of Day Share Price2020/01/23 00:00
      Earnings2019/09/30
      Annual Earnings2018/12/31


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.