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.

Snowflake

Fundamentals

Very undervalued with solid track record.


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


Market Performance


7 Day Return

-5.5%

JAZZ

-0.1%

US Pharmaceuticals

1.0%

US Market


1 Year Return

-23.6%

JAZZ

-6.2%

US Pharmaceuticals

6.7%

US Market

Return vs Industry: JAZZ underperformed the US Pharmaceuticals industry which returned -6.2% over the past year.

Return vs Market: JAZZ underperformed the US Market which returned 6.7% over the past year.


Share holder returns

JAZZIndustryMarket
7 Day-5.5%-0.1%1.0%
30 Day-9.7%-0.5%-1.8%
90 Day-13.1%-2.6%-1.8%
1 Year-23.6%-23.6%-3.9%-6.2%9.1%6.7%
3 Year0.8%0.8%17.4%9.1%46.1%36.6%
5 Year-22.1%-22.1%28.0%14.5%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: JAZZ ($118.67) is trading below our estimate of fair value ($263.82)

Significantly Undervalued: JAZZ is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: JAZZ is good value based on its PE Ratio (10.6x) compared to the Pharmaceuticals industry average (16.7x).

PE vs Market: JAZZ is good value based on its PE Ratio (10.6x) compared to the US market (17.5x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: JAZZ is good value based on its PB Ratio (2.3x) compared to the US Pharmaceuticals industry average (2.8x).


Next Steps

Future Growth

How is Jazz Pharmaceuticals expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: JAZZ's forecast earnings growth (12.3% per year) is above the savings rate (2.7%).

Earnings vs Market: JAZZ's earnings (12.3% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: JAZZ's revenue (5.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: JAZZ's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: JAZZ's Return on Equity is forecast to be high in 3 years time (24.4%)


Next Steps

Past Performance

How has Jazz Pharmaceuticals performed over the past 5 years?

25.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: JAZZ's earnings have grown significantly by 25.7% per year over the past 5 years.

Accelerating Growth: JAZZ's earnings growth over the past year (51.1%) exceeds its 5-year average (25.7% per year).

Earnings vs Industry: JAZZ earnings growth over the past year (51.1%) exceeded the Pharmaceuticals industry 24.3%.


Return on Equity

High ROE: JAZZ's Return on Equity (22%) is considered high.


Return on Assets

ROA vs Industry: JAZZ has a higher Return on Assets than the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: JAZZ's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Jazz Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: JAZZ's short term assets ($1.4B) exceeds its short term liabilities ($369.5M)

Long Term Liabilities: JAZZ's short term assets (1.4B) do not cover its long term liabilities (2.1B)


Debt to Equity History and Analysis

Debt Level: JAZZ's debt to equity ratio (53.7%) is considered high

Reducing Debt: JAZZ's debt to equity ratio has reduced from 93.5% to 53.7% over the past 5 years.

Debt Coverage: JAZZ's debt is well covered by operating cash flow (49.3%).

Interest Coverage: JAZZ's interest payments on its debt are well covered by EBIT (10.6x 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%1.5%markettop25%3.8%industryaverage2.3%forecastin3Years0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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.

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?

5.4yrs

Average management tenure


CEO

Bruce Cozadd (55yo)

10.5yrs

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 ($USD11.44M) is about average for companies of similar size in the US market ($USD6.81M).

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


Management Age and Tenure

5.4yrs

Average Tenure

56yo

Average Age

Experienced Management: JAZZ's management team is seasoned and experienced (5.4 years average tenure).


Board Age and Tenure

7.5yrs

Average Tenure

58.5yo

Average Age

Experienced Board: JAZZ's board of directors are considered experienced (7.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$600,58914 Aug 19
Paul Treacy
EntityIndividual
Role
Chief Technology Officer
Senior Vice President of Technical Operations
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
Role
Chief Technology Officer
Senior Vice President of Technical Operations
Shares1,060
Max PriceUS$135.41
SellUS$121,92305 Mar 19
Paul Treacy
EntityIndividual
Role
Chief Technology Officer
Senior Vice President of Technical Operations
Shares874
Max PriceUS$139.50
BuyUS$7,228,00119 Nov 18
Seamus Mulligan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares50,000
Max PriceUS$145.05

Ownership Breakdown


Management Team

  • Bruce Cozadd (55yo)

    Co-Founder

    • Tenure: 10.5yrs
    • Compensation: US$11.44m
  • Karen Wilson (56yo)

    Senior VP of Finance & Principal Accounting Officer

    • Tenure: 7.8yrs
    • Compensation: US$1.24m
  • Dan Swisher (56yo)

    President & COO

    • Tenure: 1.8yrs
    • Compensation: US$5.75m
  • Mike Miller (62yo)

    Executive Vice President of US Commercial

    • Tenure: 5.5yrs
    • Compensation: US$2.86m
  • Matt Young (50yo)

    Executive VP & CFO

    • Tenure: 5.6yrs
    • Compensation: US$3.36m
  • Kathee Littrell

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Paul Treacy (58yo)

    Senior Vice President of Technical Operations

    • Tenure: 5.3yrs
  • Allen Yang

    Head of Clinical Development & Acting Chief Medical Officer

    • Tenure: 0yrs
  • Neena Patil

    General Counsel

    • Tenure: 0.3yrs
  • Heidi Manna

    Senior VP & Chief Human Resources Officer

    • Tenure: 0.9yrs

Board Members

  • Ken O’Keefe (52yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$546.92k
  • Bruce Cozadd (55yo)

    Co-Founder

    • Tenure: 10.5yrs
    • Compensation: US$11.44m
  • Seamus Mulligan (59yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$554.42k
  • Peter Gray (64yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$569.42k
  • Norbert Riedel (61yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$566.92k
  • Patrick Enright (58yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$559.42k
  • Paul Berns (52yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$544.42k
  • Rick Winningham (59yo)

    Lead Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$591.92k
  • Cathy Sohn (66yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$554.42k
  • Heather McSharry (57yo)

    Independent Director

    • Tenure: 6.4yrs
    • 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$6.719b
  • Shares outstanding: 56.62m
  • 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. Th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:59
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
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.

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