Jazz Pharmaceuticals plc (NASDAQ: JAZZ)

Sector: Healthcare Industry: Biotechnology CIK: 0001232524
Market Cap 9.86 Bn
P/B 2.49
P/E -26.75
P/S 2.37
ROIC (Qtr) -149.39
Div Yield % 0.00
Rev 1y % (Qtr) 6.74
Total Debt (Qtr) 5.41 Bn
Debt/Equity (Qtr) 1.37

About

Jazz Pharmaceuticals plc, often referred to as Jazz Pharmaceuticals, is a global biopharmaceutical company that operates in the healthcare industry. Its primary business activities include the development and commercialization of innovative therapies for patients with serious diseases, with a particular focus on neuroscience and oncology. The company's products are approved in multiple countries and have received orphan drug designation for certain indications. In terms of revenue generation, Jazz Pharmaceuticals sells a range of marketed products,...

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Price action

Investment thesis

Bull case

  • Robust free cash flow of 1.34B exceeds capital expenditure of 55.31M by 24.16x, indicating strong organic growth funding capability.
  • Operating cash flow of 1.39B fully covers other non-current liabilities 737.95M by 1.89x, showing strong long-term stability.
  • Operating cash flow of 1.39B provides strong 2.88x coverage of inventory 483.11M, indicating efficient inventory management.
  • Robust tangible asset base of 4.96B provides 3.35x coverage of working capital 1.48B, indicating strong operational backing.
  • Operating cash flow of 1.39B provides solid 0.61x coverage of current liabilities 2.27B, showing strong operational health.

Bear case

  • Operating cash flow of 1.39B barely covers its investment activities of (1.33B), with a coverage ratio of -1.05, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (1.33B) provide weak support for R&D spending of 809.33M, which is -1.64x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 1.33B provide limited coverage of acquisition spending of (858.05M), which is -1.55x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 1.39B shows concerning coverage of stock compensation expenses of 290.47M, with a 4.79 ratio indicating potential earnings quality issues.
  • Operating earnings of (502.90M) show weak coverage of depreciation charges of 685.54M, with a -0.73 ratio indicating high capital intensity and potential reinvestment needs.

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,446.17 Bn -1,569.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 439.23 Bn 6,407.40 88.33 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 120.62 Bn 32.82 10.29 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 84.40 Bn 18.44 5.92 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 56.13 Bn 1,288.39 17.49 3.21 Bn
6 ARGX Argenx Se 47.89 Bn 31.79 24,973.95 -
7 BNTC Benitec Biopharma Inc. 42.45 Bn -1,015.00 0.00 0.00 Bn
8 INSM INSMED Inc 32.67 Bn -27.60 73.08 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.24 12.96
EV to Cash from Ops. EV/CFO 10.12 23.73
EV to Debt EV to Debt 2.60 772.65
EV to EBIT EV/EBIT -28.01 -11.30
EV to EBITDA EV/EBITDA 73.55 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF 10.54 22.12
EV to Market Cap EV to Market Cap 1.43 68.89
EV to Revenue EV/Rev 3.39 199.70
Price to Book Value [P/B] P/B 2.49 22.62
Price to Earnings [P/E] P/E -26.75 -12.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -12.02
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.17
Dividend per Basic Share Div per Share (Qtr) 0.00 0.01
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -0.15
Interest Coverage Int. cover (Qtr) -2.50 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -58.55 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -40.22 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -134.49 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -85.26 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -176.93 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) -277.48 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) -180.40 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 18.30 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 3.11 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.37 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.58 3.79
Current Ratio Curr Ratio (Qtr) 1.65 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 1.37 0.42
Interest Cover Ratio Int Coverage (Qtr) -2.50 857.11
Times Interest Earned Times Interest Earned (Qtr) -2.50 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 4.40 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) -12.10 -18,862.18
EBT Margin % EBT Margin % (Qtr) -16.93 -19,783.19
Gross Margin % Gross Margin % (Qtr) 88.50 -8.62
Net Profit Margin % Net Margin % (Qtr) -8.90 -19,732.60