One-glance verdict
Undervalued
$803.03 our estimate vs market $234.76
Wall Street consensus: $295.91 (-63.2% lower than our fair-value estimate)
71% below our estimate, below the bear case
Fundamentals snapshot
Jazz Pharmaceuticals plc
JAZZ · NMS · Healthcare · Biotechnology
Current price
$234.76
52-week range
$128.80 - $266.38
Market cap
$15.07B
Balance sheet
Stretched
2.65x Stretched
Net debt $2.79B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 10.6% last year.
- Reward Returns 5.1% on equity, ahead of 16% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Stock trades 303.8% above its 5-year average P/E.
What this company does
Jazz Pharmaceuticals plc
Jazz Pharmaceuticals plc makes medicines to treat serious conditions like sleep disorders and certain cancers, with most of its money coming from these established drugs. This is important because it means the company has a steady flow of income from products already approved and being sold, which helps fund their research into new treatments.
How the company got here
Jazz Pharmaceuticals plc was founded in 2003 with the goal of developing and commercializing pharmaceutical products for serious and unmet medical needs. The company has since grown significantly, expanding its global reach and therapeutic focus through strategic development and acquisitions. Headquartered in Dublin, Ireland, Jazz Pharmaceuticals has established itself as a key player in the biopharmaceutical industry, particularly in areas like neuroscience and oncology. Its journey has been marked by a commitment to bringing innovative treatments to patients facing challenging health conditions.
What it actually does
Jazz Pharmaceuticals plc develops and sells medicines designed to treat serious and often rare diseases. Think of them as a company that finds or creates specialized drugs for conditions that don't have many treatment options. Their work involves extensive research and clinical trials to bring these therapies from the lab to patients who need them, focusing on improving lives for individuals with significant health challenges.
Neuroscience
This part of Jazz Pharmaceuticals focuses on medicines that help the brain and nervous system. They offer treatments for sleep disorders, such as narcolepsy, which causes excessive daytime sleepiness, and certain types of epilepsy, which involve seizures. Products like Xywav and Epidiolex are examples of their work in this area, aiming to provide relief and better daily functioning for patients with these neurological conditions. This segment represents a significant portion of the company's efforts to address complex brain-related health issues.
Oncology
In this business area, Jazz Pharmaceuticals concentrates on developing and selling drugs to fight cancer. They have treatments for certain blood cancers, like acute lymphoblastic leukemia, and also for other types of cancer, such as small cell lung cancer and biliary tract cancers. The company is actively working on new cancer therapies, including those in late-stage development, to offer more options for patients battling various forms of this disease. This segment is a core focus for the company's growth and innovation in medical treatments.
What management is betting on now
Jazz Pharmaceuticals' leadership is currently focused on expanding the reach and impact of its existing neuroscience and oncology medicines. They are investing in further research and development for new treatments, particularly in areas like HER2-positive cancers with drugs like Zanidatamab. The strategy involves not only bringing new therapies to market but also ensuring that current treatments are accessible to more patients who can benefit from them. This dual approach aims to solidify the company's position and drive future growth by addressing critical unmet medical needs.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$385.29M
FY2025 Q1
$415.90M
FY2025 Q2
$75.89M
FY2025 Q3
$459.44M
FY2025 Q4
$345.79M
FY2026 Q1
$388.50M
FY2026 Q2
$397.60M
FY2026 Q3
$489.90M
Revenue
$1.24B
Net income
$-483.40M
Diluted EPS
-7.48
Operating cash flow
$506.10M
Free cash flow
$489.90M
Fetching…
Sources
Revenue
$1.21B
Net income
$192.80M
Diluted EPS
2.78
Operating cash flow
$415.70M
Free cash flow
$397.60M
Fetching…
Sources
Revenue
$1.07B
Net income
$293.10M
Diluted EPS
4.43
Operating cash flow
$408.20M
Free cash flow
$388.50M
Fetching…
Sources
Revenue
$1.20B
Net income
$203.45M
Diluted EPS
3.34
Operating cash flow
$362.52M
Free cash flow
$345.79M
Fetching…
Sources
Revenue
$1.13B
Net income
$251.41M
Diluted EPS
4.08
Operating cash flow
$474.62M
Free cash flow
$459.44M
Fetching…
Sources
Revenue
$1.05B
Net income
$-718.47M
Diluted EPS
-11.74
Operating cash flow
$88.86M
Free cash flow
$75.89M
Fetching…
Sources
Revenue
$897.84M
Net income
$-92.54M
Diluted EPS
-1.52
Operating cash flow
$429.78M
Free cash flow
$415.90M
Fetching…
Sources
Revenue
$1.09B
Net income
$191.12M
Diluted EPS
2.97
Operating cash flow
$398.58M
Free cash flow
$385.29M
Fetching…
Sources
Is it cheap or expensive?
Fair value $803.03 vs current price $234.76
Wall Street consensus is the average analyst price target: $295.91 (-63.2% lower than our fair-value estimate).
Our most-likely fair value is $803.03 a share — about 242.1% above today's price of $234.76, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $2.8B. Interest coverage 2.7x.
Net debt
$2.79B
Interest coverage
2.65x
Jazz Pharmaceuticals plc's profit covers its interest bill about 2.7 times over. which is weaker than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
JAZZ
BASELINE
Jazz Pharmaceuticals plc
Total debt $5.65B Interest coverage 2.65x This is the baseline the peer rows are being compared against.
Total debt $162.20M Interest coverage 12.90x +386% vs JAZZ Carries about 4.9x more debt cushion than JAZZ.
Total debt $4.19B Interest coverage 37.57x +1,316% vs JAZZ Carries about 14.2x more debt cushion than JAZZ.
Total debt $37.41M Interest coverage 553.04x +20,740% vs JAZZ Carries about 208.4x more debt cushion than JAZZ.
Total debt $451.80M Interest coverage 5.03x +89% vs JAZZ Carries about 1.9x more debt cushion than JAZZ.
Total debt $6.48B Interest coverage 342.44x +12,804% vs JAZZ Carries about 129.0x more debt cushion than JAZZ.
What you should know
The case for and against JAZZ
3 Rewards
1 Risk
Rewards
-
Revenue grew 10.6% last year.
-
Returns 5.1% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 303.8% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
69.46x
Forward P/E
9.03x
P/B
3.59x
P/S
3.19x
EV/EBITDA
8.88x
PEG ratio
0.96x
Profitability
How much profit each dollar creates
Gross margin
91.1%
Operating margin
30.2%
Net margin
4.4%
ROE
5.1%
ROA
6.9%
Health
Liquidity and balance-sheet strength
Debt / equity
1.35x
Current ratio
1.82x
Quick ratio
1.47x
Total debt
$5.65B
Total cash
$2.86B
Growth
How the business has been compounding
Revenue TTM
$4.72B
Revenue 5Y CAGR
8.4%
EPS TTM
3.38
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$1.69B
Free CF TTM
$1.30B
FCF margin
27.5%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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