Jazz Pharmaceuticals plc (NASDAQ: JAZZ)

Sector: Healthcare Industry: Biotechnology CIK: 0001232524
P/B 2.60
P/E -27.96
P/S 2.48
Market Cap 10.30 Bn
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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Analysis

Pros

  • 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.

Cons

  • 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.

Peer Comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,349.40 Bn -1,464.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 437.43 Bn 6,381.20 87.97 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 116.09 Bn 31.59 9.90 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 78.10 Bn 17.06 5.48 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 55.87 Bn 1,282.42 17.40 3.21 Bn
6 ARGX Argenx Se 52.85 Bn 35.08 27,559.65 -
7 BNTC Benitec Biopharma Inc. 41.75 Bn -998.33 0.00 0.00 Bn
8 INSM INSMED Inc 37.80 Bn -31.93 84.56 0.74 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 1.28 12.31
EV to Cash from Ops. 10.44 23.25
EV to Debt 2.68 738.44
EV to EBIT -28.90 -9.16
EV to EBITDA 75.88 6.95
EV to Free Cash Flow [EV/FCF] 10.87 21.90
EV to Market Cap 1.41 65.67
EV to Revenue 3.50 227.32
Price to Book Value [P/B] 2.60 22.34
Price to Earnings [P/E] -27.96 -11.77

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 -11.94
Dividend Payout Ratio % 0.00 0.16
Dividend per Basic Share 0.00 0.01
FCF Dividend Payout Ratio % 0.00 -0.14
Interest Coverage -2.50 841.00

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % -58.55 -27.13
Cash and Equivalents Growth (1y) % -40.22 734.65
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % -134.49 -46.93
EBITDA Growth (1y) % -85.26 -1.68
EBIT Growth (1y) % -176.93 -56.45
EBT Growth (1y) % -277.48 -12.70
EPS Growth (1y) % -180.40 -28.31
FCF Growth (1y) % 18.30 -31.90
Gross Profit Growth (1y) % 3.11 226.84

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.37 0.14
Cash Payout Ratio 0.00 0.00
Cash Ratio 0.58 3.85
Current Ratio 1.65 7.27
Debt to Equity Ratio 1.37 0.40
Interest Cover Ratio -2.50 841.00
Times Interest Earned -2.50 841.00

Profitability

Metric Value Industry Percentile
EBITDA Margin % 4.40 -18,234.31
EBIT Margin % -12.10 -18,580.80
EBT Margin % -16.93 -19,488.74
Gross Margin % 88.50 -7.59
Net Profit Margin % -8.90 -19,439.22