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Jazz Pharmaceuticals

Nasdaq:JAZZ
Snowflake Description

Undervalued with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
JAZZ
Nasdaq
$7B
Market Cap
  1. Home
  2. US
  3. Pharmaceuticals & Biotech
Company description

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 last earnings update was 39 days ago. More info.


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JAZZ Share Price and Events
7 Day Returns
-0.4%
NasdaqGS:JAZZ
0.7%
US Pharmaceuticals
1.5%
US Market
1 Year Returns
-26.8%
NasdaqGS:JAZZ
6.9%
US Pharmaceuticals
1%
US Market
JAZZ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Jazz Pharmaceuticals (JAZZ) -0.4% -6.4% -4.6% -26.8% -9.2% -15.8%
US Pharmaceuticals 0.7% 1.7% -2.4% 6.9% 8.1% 15.4%
US Market 1.5% 1% 1.4% 1% 37.6% 38.1%
1 Year Return vs Industry and Market
  • JAZZ underperformed the Pharmaceuticals industry which returned 6.9% over the past year.
  • JAZZ underperformed the Market in United States of America which returned 1% over the past year.
Price Volatility
JAZZ
Industry
5yr Volatility vs Market

Value

 Is Jazz Pharmaceuticals undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Jazz Pharmaceuticals to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Jazz Pharmaceuticals.

NasdaqGS:JAZZ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 19 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:JAZZ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 7.1%
Pharmaceuticals Unlevered Beta Simply Wall St/ S&P Global 0.64
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.642 (1 + (1- 12.5%) (23.83%))
0.849
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.85
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.849 * 7.14%)
8.8%

Discounted Cash Flow Calculation for NasdaqGS:JAZZ using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Jazz Pharmaceuticals is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:JAZZ DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.8%)
2019 815.06 Analyst x8 749.17
2020 958.99 Analyst x9 810.20
2021 1,102.52 Analyst x7 856.17
2022 1,174.87 Analyst x7 838.59
2023 1,025.42 Analyst x7 672.75
2024 936.25 Est @ -8.7% 564.59
2025 886.92 Est @ -5.27% 491.60
2026 861.48 Est @ -2.87% 438.90
2027 851.23 Est @ -1.19% 398.62
2028 851.12 Est @ -0.01% 366.34
Present value of next 10 years cash flows $6,186.92
NasdaqGS:JAZZ DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $851.12 × (1 + 2.73%) ÷ (8.8% – 2.73%)
$14,415.77
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $14,415.77 ÷ (1 + 8.8%)10
$6,204.95
NasdaqGS:JAZZ Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $6,186.92 + $6,204.95
$12,391.87
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $12,391.87 / 56.66
$218.7
NasdaqGS:JAZZ Discount to Share Price
Calculation Result
Value per share (USD) From above. $218.70
Current discount Discount to share price of $130.43
= -1 x ($130.43 - $218.70) / $218.70
40.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Jazz Pharmaceuticals is available for.
Intrinsic value
40%
Share price is $130.43 vs Future cash flow value of $218.7
Current Discount Checks
For Jazz Pharmaceuticals to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Jazz Pharmaceuticals's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Jazz Pharmaceuticals's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Jazz Pharmaceuticals's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Jazz Pharmaceuticals's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:JAZZ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $8.20
NasdaqGS:JAZZ Share Price ** NasdaqGS (2019-06-14) in USD $130.43
United States of America Pharmaceuticals Industry PE Ratio Median Figure of 29 Publicly-Listed Pharmaceuticals Companies 17.32x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.72x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Jazz Pharmaceuticals.

NasdaqGS:JAZZ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:JAZZ Share Price ÷ EPS (both in USD)

= 130.43 ÷ 8.20

15.9x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Jazz Pharmaceuticals is good value based on earnings compared to the US Pharmaceuticals industry average.
  • Jazz Pharmaceuticals is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Jazz Pharmaceuticals's expected growth come at a high price?
Raw Data
NasdaqGS:JAZZ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.9x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
12.1%per year
United States of America Pharmaceuticals Industry PEG Ratio Median Figure of 21 Publicly-Listed Pharmaceuticals Companies 1.58x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NasdaqGS:JAZZ PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.9x ÷ 12.1%

1.31x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Jazz Pharmaceuticals is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Jazz Pharmaceuticals's assets?
Raw Data
NasdaqGS:JAZZ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $47.98
NasdaqGS:JAZZ Share Price * NasdaqGS (2019-06-14) in USD $130.43
United States of America Pharmaceuticals Industry PB Ratio Median Figure of 182 Publicly-Listed Pharmaceuticals Companies 3.14x
United States of America Market PB Ratio Median Figure of 5,242 Publicly-Listed Companies 1.8x
NasdaqGS:JAZZ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:JAZZ Share Price ÷ Book Value per Share (both in USD)

= 130.43 ÷ 47.98

2.72x

* Primary Listing of Jazz Pharmaceuticals.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Jazz Pharmaceuticals is good value based on assets compared to the US Pharmaceuticals industry average.
X
Value checks
We assess Jazz Pharmaceuticals's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Pharmaceuticals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Pharmaceuticals industry average (and greater than 0)? (1 check)
  5. Jazz Pharmaceuticals has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Jazz Pharmaceuticals expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
12.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Jazz Pharmaceuticals expected to grow at an attractive rate?
  • Jazz Pharmaceuticals's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Jazz Pharmaceuticals's earnings growth is positive but not above the United States of America market average.
  • Jazz Pharmaceuticals's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:JAZZ Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:JAZZ Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 12.1%
NasdaqGS:JAZZ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 5.8%
United States of America Pharmaceuticals Industry Earnings Growth Rate Market Cap Weighted Average 14.8%
United States of America Pharmaceuticals Industry Revenue Growth Rate Market Cap Weighted Average 5.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.8%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:JAZZ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:JAZZ Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 2,503 1,004 443 9
2022-12-31 2,718 1,123 867 11
2021-12-31 2,508 1,056 772 14
2020-12-31 2,336 957 650 19
2019-12-31 2,094 833 459 19
NasdaqGS:JAZZ Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,954 834 486
2018-12-31 1,891 799 447
2018-09-30 1,851 784 520
2018-06-30 1,793 752 434
2018-03-31 1,687 696 447
2017-12-31 1,619 693 488
2017-09-30 1,579 669 372
2017-06-30 1,541 613 399
2017-03-31 1,528 605 408
2016-12-31 1,488 592 397
2016-09-30 1,432 531 363
2016-06-30 1,399 573 361

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Jazz Pharmaceuticals's earnings are expected to grow by 12.1% yearly, however this is not considered high growth (20% yearly).
  • Jazz Pharmaceuticals's revenue is expected to grow by 5.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:JAZZ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from Jazz Pharmaceuticals Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:JAZZ Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 13.67 13.67 13.67 1.00
2022-12-31 17.70 18.99 16.41 2.00
2021-12-31 14.59 15.00 14.17 2.00
2020-12-31 11.40 12.88 10.14 4.00
2019-12-31 7.79 8.45 7.17 4.00
NasdaqGS:JAZZ Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 8.20
2018-12-31 7.45
2018-09-30 8.64
2018-06-30 7.23
2018-03-31 7.45
2017-12-31 8.13
2017-09-30 6.21
2017-06-30 6.63
2017-03-31 6.77
2016-12-31 6.56
2016-09-30 5.96
2016-06-30 5.90

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Jazz Pharmaceuticals is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Jazz Pharmaceuticals's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Jazz Pharmaceuticals has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Jazz Pharmaceuticals performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Jazz Pharmaceuticals's growth in the last year to its industry (Pharmaceuticals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Jazz Pharmaceuticals has delivered over 20% year on year earnings growth in the past 5 years.
  • Jazz Pharmaceuticals's 1-year earnings growth is less than its 5-year average (8.7% vs 26.9%)
  • Jazz Pharmaceuticals's earnings growth has not exceeded the US Pharmaceuticals industry average in the past year (8.7% vs 40.4%).
Earnings and Revenue History
Jazz Pharmaceuticals's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Jazz Pharmaceuticals Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:JAZZ Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,954.50 486.31 590.06 220.05
2018-12-31 1,890.92 447.10 629.33 222.62
2018-09-30 1,850.86 519.84 667.12 233.55
2018-06-30 1,793.35 434.05 635.77 229.76
2018-03-31 1,687.25 447.33 609.51 213.78
2017-12-31 1,618.69 487.85 546.56 196.04
2017-09-30 1,578.92 372.33 517.95 174.71
2017-06-30 1,541.24 398.63 505.29 175.14
2017-03-31 1,528.02 407.53 495.58 174.07
2016-12-31 1,487.97 396.83 480.09 160.40
2016-09-30 1,432.23 362.90 470.23 147.59
2016-06-30 1,398.92 361.04 462.41 150.58
2016-03-31 1,351.51 334.65 446.92 139.32
2015-12-31 1,324.80 329.54 432.75 133.45
2015-09-30 1,312.06 328.39 422.00 130.36
2015-06-30 1,277.78 266.19 410.57 102.00
2015-03-31 1,235.26 221.74 399.09 94.25
2014-12-31 1,172.88 58.39 404.17 85.18
2014-09-30 1,080.51 32.07 350.05 74.43
2014-06-30 1,006.08 81.71 327.28 63.83
2014-03-31 923.11 80.24 305.03 52.99
2013-12-31 872.42 216.31 281.41 41.63
2013-09-30 820.35 327.23 269.00 35.10
2013-06-30 763.71 285.41 256.03 30.19
2013-03-31 679.69 274.34 229.02 23.27
2012-12-31 585.98 261.15 202.57 20.48
2012-09-30 485.81 132.42 172.65 16.96
2012-06-30 383.59 131.30 140.33 13.32

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Jazz Pharmaceuticals has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Jazz Pharmaceuticals used its assets more efficiently than the US Pharmaceuticals industry average last year based on Return on Assets.
  • Jazz Pharmaceuticals's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Jazz Pharmaceuticals's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Pharmaceuticals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Jazz Pharmaceuticals has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Jazz Pharmaceuticals's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Jazz Pharmaceuticals's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Jazz Pharmaceuticals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Jazz Pharmaceuticals's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Jazz Pharmaceuticals's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Jazz Pharmaceuticals Company Filings, last reported 2 months ago.

NasdaqGS:JAZZ Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 2,730.45 1,761.40 833.95
2018-12-31 2,757.42 1,596.41 826.55
2018-09-30 3,027.32 1,593.97 1,066.17
2018-06-30 2,869.75 1,591.70 816.55
2018-03-31 2,786.57 1,582.16 708.88
2017-12-31 2,713.10 1,581.43 601.04
2017-09-30 2,469.30 1,579.91 452.62
2017-06-30 2,201.03 1,671.89 319.21
2017-03-31 1,983.99 1,875.69 407.00
2016-12-31 1,877.34 2,029.63 425.96
2016-09-30 1,716.00 2,183.47 425.99
2016-06-30 1,692.46 1,179.15 916.38
2016-03-31 1,607.44 1,184.03 980.54
2015-12-31 1,598.65 1,188.44 988.79
2015-09-30 1,563.48 1,289.69 998.86
2015-06-30 1,446.82 1,366.46 921.64
2015-03-31 1,305.33 1,344.05 782.60
2014-12-31 1,371.21 1,342.43 684.04
2014-09-30 1,340.61 1,340.78 575.04
2014-06-30 1,280.09 1,196.43 268.26
2014-03-31 1,266.51 1,198.61 251.38
2013-12-31 1,295.53 549.98 636.50
2013-09-30 1,243.70 551.14 588.46
2013-06-30 1,175.45 552.30 504.31
2013-03-31 1,161.90 451.16 450.51
2012-12-31 1,121.29 456.76 387.20
2012-09-30 886.09 462.35 189.79
2012-06-30 831.46 467.94 154.54
  • Jazz Pharmaceuticals's level of debt (58.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (94.6% vs 58.5% today).
  • Debt is well covered by operating cash flow (52.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 11x coverage).
X
Financial health checks
We assess Jazz Pharmaceuticals's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Jazz Pharmaceuticals has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Jazz Pharmaceuticals dividends. Estimated to be 0% next year.
If you bought $2,000 of Jazz Pharmaceuticals shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Jazz Pharmaceuticals's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Jazz Pharmaceuticals's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:JAZZ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
United States of America Pharmaceuticals Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 2.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:JAZZ Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 2.00
2020-12-31 0.00 3.00
2019-12-31 0.00 3.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Jazz Pharmaceuticals has not reported any payouts.
  • Unable to verify if Jazz Pharmaceuticals's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Jazz Pharmaceuticals's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Jazz Pharmaceuticals has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Jazz Pharmaceuticals's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Jazz Pharmaceuticals's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Jazz Pharmaceuticals afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Jazz Pharmaceuticals has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Bruce Cozadd
COMPENSATION $11,443,133
AGE 54
TENURE AS CEO 10.2 years
CEO Bio

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 serves as the Chairman and Chief Executive Officer at Azur Pharma Limited. He served in various executive management positions with ALZA Corporation from 1991 to 2001, including Vice President of Corporate Planning and Analysis. He served as Executive Vice President and Chief Operating Officer at ALZA Corporation from January 2000 to 2001. He served as Senior Vice President of ALZA from 1997 to 1999, Chief Financial Officer from 1994 to 1999 and Vice President from 1994 to 1996. Mr. Cozadd served as Executive Chairman at Jazz Pharmaceuticals, Inc. from 2003 to 2009. He served as an Independent Director of Cerus Corporation since November 2001 until January 3, 2018. Mr. Cozadd has been a Director of Jazz Pharmaceuticals Public Limited Company since 2003, Threshold Pharmaceuticals Inc. since December 27, 2005 to August 2017 and Danisco US Inc. (formerly DuPont Industrial Biosciences) since 2000. He serves as a Director of EKOS Corporation. He serves as Board Emeritus of TheatreWorks Inc. He serves on the boards of Stanford Hospital and Clinics and the Stanford Molecular Imaging Advisory Board. He serves on the boards of two non-profit organizations, The Nueva School and SFJAZZ. He served as a Member of the Health Care Investment Banking team at Smith Barney, Harris Upham & Co. Mr. Cozadd received an MBA from the Stanford Graduate School of Business and a BS in Molecular Biophysics and Biochemistry and Economics from Yale University.

CEO Compensation
  • Bruce's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Bruce's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Jazz Pharmaceuticals management team in years:

5.2
Average Tenure
55
Average Age
  • The average tenure for the Jazz Pharmaceuticals management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Bruce Cozadd

TITLE
Co-Founder
COMPENSATION
$11M
AGE
54
TENURE
10.2 yrs

Dan Swisher

TITLE
President & COO
COMPENSATION
$6M
AGE
55
TENURE
1.4 yrs

Matt Young

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
49
TENURE
5.3 yrs

Mike Miller

TITLE
Executive Vice President of US Commercial
COMPENSATION
$3M
AGE
61
TENURE
5.2 yrs

Karen Wilson

TITLE
Senior VP of Finance & Principal Accounting Officer
COMPENSATION
$1M
AGE
55
TENURE
7.4 yrs

Paul Treacy

TITLE
Senior Vice President of Technical Operations
AGE
57
TENURE
4.9 yrs

Kathee Littrell

TITLE
Vice President of Investor Relations

Heidi Manna

TITLE
Senior VP & Chief Human Resources Officer
TENURE
0.6 yrs

Iain McGill

TITLE
Senior Vice President of Jazz Pharmaceuticals Europe and Rest of World
AGE
45
TENURE
7 yrs

Allen Yang

TITLE
Head of Clinical Development & Acting Chief Medical Officer
Board of Directors Tenure

Average tenure and age of the Jazz Pharmaceuticals board of directors in years:

7.2
Average Tenure
57.5
Average Age
  • The tenure for the Jazz Pharmaceuticals board of directors is about average.
Board of Directors

Bruce Cozadd

TITLE
Co-Founder
COMPENSATION
$11M
AGE
54
TENURE
10.2 yrs

Peter Gray

TITLE
Independent Director
COMPENSATION
$569K
AGE
63
TENURE
6.1 yrs

Heather McSharry

TITLE
Independent Director
COMPENSATION
$579K
AGE
56
TENURE
6.1 yrs

Norbert Riedel

TITLE
Independent Director
COMPENSATION
$567K
AGE
60
TENURE
6.1 yrs

Rick Winningham

TITLE
Lead Independent Director
COMPENSATION
$592K
AGE
58
TENURE
5.1 yrs

Ken O’Keefe

TITLE
Independent Director
COMPENSATION
$547K
AGE
51
TENURE
15.4 yrs

Patrick Enright

TITLE
Independent Director
COMPENSATION
$559K
AGE
57
TENURE
9.9 yrs

Paul Berns

TITLE
Independent Director
COMPENSATION
$544K
AGE
51
TENURE
9.4 yrs

Seamus Mulligan

TITLE
Independent Director
COMPENSATION
$554K
AGE
58
TENURE
7.4 yrs

Cathy Sohn

TITLE
Independent Director
COMPENSATION
$554K
AGE
65
TENURE
6.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
08. Mar 19 Sell Paul Treacy Individual 06. Mar 19 06. Mar 19 -1,060 $135.41 $-143,535
05. Mar 19 Sell Paul Treacy Individual 01. Mar 19 01. Mar 19 -874 $139.50 $-121,923
19. Nov 18 Buy Seamus Mulligan Individual 15. Nov 18 15. Nov 18 50,000 $145.05 $7,228,001
13. Aug 18 Sell Rick Winningham Individual 09. Aug 18 10. Aug 18 -7,639 $176.61 $-1,346,060
13. Aug 18 Sell Norbert Riedel Individual 10. Aug 18 10. Aug 18 -660 $176.61 $-116,563
13. Aug 18 Sell Paul Treacy Individual 10. Aug 18 10. Aug 18 -1,309 $176.61 $-231,183
13. Aug 18 Sell Paul Berns Individual 10. Aug 18 10. Aug 18 -660 $176.61 $-116,563
13. Aug 18 Sell Peter Gray Individual 10. Aug 18 10. Aug 18 -715 $176.61 $-126,277
13. Aug 18 Sell Kenneth O’Keefe Individual 10. Aug 18 10. Aug 18 -660 $176.61 $-116,563
13. Aug 18 Sell Heather McSharry Individual 10. Aug 18 10. Aug 18 -715 $176.61 $-126,276
13. Aug 18 Sell Elmar Schnee Individual 10. Aug 18 10. Aug 18 -742 $176.61 $-131,045
13. Aug 18 Sell Catherine Sohn Individual 10. Aug 18 10. Aug 18 -660 $176.61 $-116,563
13. Aug 18 Sell Patrick Enright Individual 10. Aug 18 10. Aug 18 -1,365 $175.13 $-239,057
X
Management checks
We assess Jazz Pharmaceuticals's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Jazz Pharmaceuticals has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Jazz Pharmaceuticals plc's (NASDAQ:JAZZ) P/E Ratio Really That Good?

We'll look at Jazz Pharmaceuticals plc's (NASDAQ:JAZZ) P/E ratio and reflect on what it tells us about the company's share price. … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Jazz Pharmaceuticals: P/E of 16.68 = $136.76 ÷ $8.2 (Based on the year to March 2019.) Is A High P/E Ratio Good? … How Does Jazz Pharmaceuticals's Debt Impact Its P/E Ratio?

Simply Wall St -

How Do Analysts See Jazz Pharmaceuticals plc (NASDAQ:JAZZ) Performing In The Years Ahead?

Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … In December 2018, Jazz Pharmaceuticals plc (NASDAQ:JAZZ) announced its latest earnings update, whicha

Simply Wall St -

How Much Are Jazz Pharmaceuticals plc (NASDAQ:JAZZ) Insiders Spending On Buying Shares?

So we'll take a look at whether insiders have been buying or selling shares in Jazz Pharmaceuticals plc (NASDAQ:JAZZ). … In the last twelve months, the biggest single purchase by an insider was when Independent Director Seamus Mulligan bought US$7.2m worth of shares at a price of US$145 per share. … As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price

Simply Wall St -

Jazz Pharmaceuticals plc (NASDAQ:JAZZ): What We Can Expect From This Growth Stock

Based on Jazz Pharmaceuticals plc's (NASDAQ:JAZZ) earnings update in December 2018,. … with earnings expected to grow by 5.0% in the upcoming year … the higher past 5-year average growth rate of 27%

Simply Wall St -

Is Jazz Pharmaceuticals plc's (NASDAQ:JAZZ) Future Growth Already Accounted For In Today's Price?

Growth expectations for Jazz Pharmaceuticals plc (NASDAQ:JAZZ) are high, but many investors are starting to ask whether its last close at $140.7 can still be rationalized by the future potential. … Check out our latest analysis for Jazz Pharmaceuticals? … Investors in Jazz Pharmaceuticals have been patiently waiting for the uptick in earnings.

Simply Wall St -

Is Jazz Pharmaceuticals plc's (NASDAQ:JAZZ) 16% ROE Better Than Average?

To keep the lesson grounded in practicality, we'll use ROE to better understand Jazz Pharmaceuticals plc (NASDAQ:JAZZ). … That means that for every $1 worth of shareholders' equity, it generated $0.16 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

How Should Investors React To Jazz Pharmaceuticals plc's (NASDAQ:JAZZ) CEO Pay?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Bruce Cozadd's Compensation Compare With Similar Sized Companies. … Our data indicates that Jazz Pharmaceuticals plc is worth US$7.6b, and total annual CEO compensation is US$10m.

Simply Wall St -

Volatility 101: Should Jazz Pharmaceuticals Shares Have Dropped 19%?

During the unfortunate half decade during which the share price slipped, Jazz Pharmaceuticals actually saw its earnings per share (EPS) improve by 13% per year. … In contrast to the share price, revenue has actually increased by 14% a year in the five year period. … A more detailed examination of the revenue and earnings may or may not explain why the share price languishes; there could be an opportunity

Simply Wall St -

What You Must Know About Jazz Pharmaceuticals plc's (NASDAQ:JAZZ) Financial Strength

Stocks with market capitalization between $2B and $10B, such as Jazz Pharmaceuticals plc (NASDAQ:JAZZ) with a size of US$7.5b, do not attract as much attention from the investing community as do the small-caps and large-caps. … This article will examine JAZZ’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Note that this information is centred entirely on financial health and is a top-level understanding, so I encourage you to look further.

Simply Wall St -

Is Jazz Pharmaceuticals plc's (NASDAQ:JAZZ) P/E Ratio Really That Good?

We'll look at Jazz Pharmaceuticals plc's (NASDAQ:JAZZ) P/E ratio and reflect on what it tells us about the company's share price. … Jazz Pharmaceuticals has a price to earnings ratio of 14.46, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Company Info

Description

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.

Details
Name: Jazz Pharmaceuticals plc
JAZZ
Exchange: NasdaqGS
Founded:
$7,390,255,231
56,660,701
Website: http://www.jazzpharma.com
Address: Jazz Pharmaceuticals plc
Waterloo Exchange,
Fifth Floor,
Dublin,
Co. Dublin, 4,
Ireland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS JAZZ Common Stock Nasdaq Global Select US USD 01. Jun 2007
DB J7Z Common Stock Deutsche Boerse AG DE EUR 01. Jun 2007
Number of employees
Current staff
Staff numbers
1,460
Jazz Pharmaceuticals employees.
Industry
Pharmaceuticals
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/15 00:39
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/10
Last earnings filing: 2019/05/07
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.