NasdaqGS:JAZZ

Stock Analysis Report

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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.


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

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

2.3%

JAZZ

1.7%

US Pharmaceuticals

2.7%

US Market


1 Year Return

-11.4%

JAZZ

10.6%

US Pharmaceuticals

9.1%

US Market

Return vs Industry: JAZZ underperformed the US Pharmaceuticals industry which returned 6.6% over the past year.

Return vs Market: JAZZ underperformed the US Market which returned 4.6% over the past year.


Shareholder returns

JAZZIndustryMarket
7 Day2.3%1.7%2.7%
30 Day0.9%0.08%4.5%
90 Day-1.0%7.9%2.3%
1 Year-11.4%-11.4%13.4%10.6%11.5%9.1%
3 Year-24.1%-24.1%25.7%16.7%30.6%22.0%
5 Year-36.1%-36.1%25.3%11.7%57.2%39.5%

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 ($113.38) is trading below our estimate of fair value ($236.23)

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


Price To Earnings Ratio

PE vs Industry: JAZZ is poor value based on its PE Ratio (22.8x) compared to the Pharmaceuticals industry average (16.8x).

PE vs Market: JAZZ is poor value based on its PE Ratio (22.8x) compared to the US market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: JAZZ is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: JAZZ is good value based on its PB Ratio (2.2x) compared to the US Pharmaceuticals industry average (3.2x).


Next Steps

Future Growth

How is Jazz Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

22.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JAZZ's forecast earnings growth (22% per year) is above the savings rate (2.2%).

Earnings vs Market: JAZZ's earnings (22% per year) are forecast to grow faster than the US market (21.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: JAZZ's revenue (1.8% per year) is forecast to grow slower than the US market (8.9% per year).

High Growth Revenue: JAZZ's revenue (1.8% 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 (21.6%)


Next Steps

Past Performance

How has Jazz Pharmaceuticals performed over the past 5 years?

12.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JAZZ has a large one-off loss of $447.3M impacting its March 31 2020 financial results.

Growing Profit Margin: JAZZ's current net profit margins (12.8%) are lower than last year (25%).


Past Earnings Growth Analysis

Earnings Trend: JAZZ's earnings have grown by 12.2% per year over the past 5 years.

Accelerating Growth: JAZZ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: JAZZ had negative earnings growth (-42.6%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (14.5%).


Return on Equity

High ROE: JAZZ's Return on Equity (10%) is considered low.


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 ($396.1M).

Long Term Liabilities: JAZZ's short term assets ($1.5B) do not cover its long term liabilities ($2.0B).


Debt to Equity History and Analysis

Debt Level: JAZZ's debt to equity ratio (57.6%) is considered high.

Reducing Debt: JAZZ's debt to equity ratio has reduced from 102.8% to 57.6% over the past 5 years.

Debt Coverage: JAZZ's debt is well covered by operating cash flow (52.4%).

Interest Coverage: JAZZ's interest payments on its debt are well covered by EBIT (9x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

Bruce Cozadd (55yo)

11.08yrs

Tenure

US$14,713,637

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 and serves as ...


CEO Compensation Analysis

Compensation vs Market: Bruce's total compensation ($USD14.71M) is above average for companies of similar size in the US market ($USD7.43M).

Compensation vs Earnings: Bruce's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Bruce Cozadd
Co-Founder11.08yrsUS$14.71m0.40% $25.3m
Daniel Swisher
President & COO2.33yrsUS$4.71m0.014% $894.6k
Neena Patil
Senior VP & General Counsel0.83yrUS$3.21mno data
Matthew Young
Consultant0.58yrUS$3.72m0.018% $1.1m
Robert Iannone
Executive Vice President of Research & Development1yrUS$3.69mno data
Renée Galá
Executive VP & CFO0.17yrno datano data
Patricia Carr
Vice President of Finance & Principal Accounting Officer0.75yrno data0.012% $737.1k
Finbar Larkin
Senior Vice President of Technical Operations0.58yrno data0.0070% $437.9k
Katherine Littrell
Vice President of Investor Relationsno datano datano data
Heidi Manna
Senior VP & Chief Human Resources Officer1.5yrsno datano data

0.8yrs

Average Tenure

51yo

Average Age

Experienced Management: JAZZ's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Bruce Cozadd
Co-Founder11.08yrsUS$14.71m0.40% $25.3m
Kenneth O'Keefe
Independent Director16.33yrsUS$535.07k0.015% $925.9k
Seamus Mulligan
Independent Director8.33yrsUS$542.57k1.99% $124.8m
Peter Gray
Independent Director7yrsUS$557.57k0.013% $838.7k
Norbert Riedel
Independent Director7yrsUS$555.07k0.010% $653.7k
Patrick Enright
Independent Director10.83yrsUS$547.57k0.028% $1.8m
Paul Berns
Independent Director10.33yrsUS$532.57k0.011% $685.7k
Rick Winningham
Lead Independent Director6yrsUS$580.07k0.0045% $284.2k
Catherine Sohn
Independent Director7.83yrsUS$542.57k0.013% $785.4k
Heather McSharry
Independent Director7yrsUS$567.57k0.012% $761.6k

8.1yrs

Average Tenure

58.5yo

Average Age

Experienced Board: JAZZ's board of directors are considered experienced (8.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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: 2003
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$6.273b
  • Shares outstanding: 55.33m
  • 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 neuroscience, including sleep medicine and movement disorders; and in oncology, including hematologic and solid tumors. 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; Sunosi for the treatment of EDS in patients with narcolepsy and obstructive sleep apnea; Erwinaze to treat acute lymphoblastic leukemia; Defitelio for the treatment of adult and pediatric patients with hepatic veno-occlusive disease; and Vyxeos liposome for injection, a product for the treatment of adults with newly-diagnosed therapy-related acute myeloid leukemia. The company also offers JZP-258, an oxybate product candidate, to treat EDS and cataplexy with narcolepsy and idiopathic hypersomnia; JZP-324, a low sodium oxybate formulation with the potential to provide a clinically meaningful option for some narcolepsy patients; JZP-385, a T-type calcium channel modulator, for the treatment of essential tremor; JZP-458, a recombinant Erwinia asparaginase, for use as a component of a multi-agent chemotherapeutic regimen in the treatment of pediatric and adult patients; and lurbinectedin, a product candidate under clinical investigation for the treatment of patients with relapsed small cell lung cancer. Jazz Pharmaceuticals plc has licensing and collaboration agreements with ImmunoGen, Inc.; Codiak BioSciences, Inc.; Pfenex, Inc.; XL-protein GmbH; and Redx Pharma. The company was founded in 2003 and 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 Analysis2020/05/28 03:07
End of Day Share Price2020/05/27 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.