Jazz Pharmaceuticals Plc

JAZZ

Pharmaceutical Preparations

Mkt Cap

$6.57B

PE

19.86

Debt

$6.395B

Cash

$1.443B

EV

$11.52B

FCF

$1.011B

Market Cap

$6.57B

P/E Ratio

19.86

Debt

$6.395B

Cash

$1.443B

EV

$11.52B

FCF

$1.011B

Charts data: {"Earnings":[{"time":"2014-12-30","value":57326000},{"time":"2015-12-30","value":329534000},{"time":"2016-12-30","value":396831000},{"time":"2017-12-30","value":487848000},{"time":"2018-12-30","value":447098000},{"time":"2019-12-30","value":523367000},{"time":"2020-12-30","value":238616000},{"time":"2021-12-30","value":-329668000},{"time":"2022-12-30","value":-224060000},{"time":"2023-12-30","value":414832000}],"Sales":[{"time":"2014-12-30","value":1172875000},{"time":"2015-12-30","value":1324803000},{"time":"2016-12-30","value":1487973000},{"time":"2017-12-30","value":1618693000},{"time":"2018-12-30","value":1890922000},{"time":"2019-12-30","value":2161761000},{"time":"2020-12-30","value":2363567000},{"time":"2021-12-30","value":3094238000},{"time":"2022-12-30","value":3659374000},{"time":"2023-12-30","value":3834204000}],"Net Margins":[{"time":"2014-12-30","value":0.04887647873814345},{"time":"2015-12-30","value":0.2487418884166174},{"time":"2016-12-30","value":0.2666923391755092},{"time":"2017-12-30","value":0.3013838942900229},{"time":"2018-12-30","value":0.23644444350427993},{"time":"2019-12-30","value":0.24210215652886696},{"time":"2020-12-30","value":0.10095588574387779},{"time":"2021-12-30","value":-0.10654254779367327},{"time":"2022-12-30","value":-0.061229051744915934},{"time":"2023-12-30","value":0.10819246967558326}],"Assets":[{"time":"2014-12-30","value":3338955000},{"time":"2015-12-30","value":3359663000},{"time":"2016-12-30","value":4800227000},{"time":"2017-12-30","value":5123672000},{"time":"2018-12-30","value":5203491000},{"time":"2019-12-30","value":5538897000},{"time":"2020-12-30","value":6535901000},{"time":"2021-12-30","value":12298639000},{"time":"2022-12-30","value":10835255000},{"time":"2023-12-30","value":11393359000}],"Stockholders Equity":[{"time":"2014-12-30","value":1371208000},{"time":"2015-12-30","value":1598646000},{"time":"2016-12-30","value":1877339000},{"time":"2017-12-30","value":2713097000},{"time":"2018-12-30","value":2757422000},{"time":"2019-12-30","value":3110981000},{"time":"2020-12-30","value":3659745000},{"time":"2021-12-30","value":3965191000},{"time":"2022-12-30","value":3085734000},{"time":"2023-12-30","value":3736997000}],"ROE":[{"time":"2014-12-30","value":0.04180693228160862},{"time":"2015-12-30","value":0.2061331902122171},{"time":"2016-12-30","value":0.21137951110587913},{"time":"2017-12-30","value":0.17981222197363383},{"time":"2018-12-30","value":0.162143480395819},{"time":"2019-12-30","value":0.1682321428514028},{"time":"2020-12-30","value":0.0652001710501688},{"time":"2021-12-30","value":-0.0831405094987858},{"time":"2022-12-30","value":-0.07261157312976427},{"time":"2023-12-30","value":0.11100677897252795}],"ROA":[{"time":"2014-12-30","value":0.05857730936775129},{"time":"2015-12-30","value":0.15127112451457184},{"time":"2016-12-30","value":0.12382497744377506},{"time":"2017-12-30","value":0.10321542831000892},{"time":"2018-12-30","value":0.11815875149971433},{"time":"2019-12-30","value":0.09611552625008192},{"time":"2020-12-30","value":0.05784558242237757},{"time":"2021-12-30","value":0.013845271822353677},{"time":"2022-12-30","value":-0.006047665698684526},{"time":"2023-12-30","value":0.05155345320023708}]}

Jazz Pharmaceuticals plc, a biopharmaceutical company, identifies, develops, and commercializes pharmaceutical products for 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 neuroscience, including sleep medicine and movement disorders; and in oncology, such as hematologic and solid tumors. Its lead marketed products in neuroscience include Xywav, an oral solution for the treatment of cataplexy or excessive daytime sleepiness (EDS) in patients with narcolepsy and idiopathic hypersomnia (IH); Xyrem, a sodium oxybate oral solution for the treatment of cataplexy or EDS in patients with narcolepsy seven years of age and older; and Epidiolex, a cannabidiol oral solution for the treatment of seizures associated with Lennox-Gastaut syndrome, Dravet syndrome, or tuberous sclerosis complex in patients one year of age or older. The company's lead marketed products in oncology comprise Zepzelca for the treatment of adult patients with metastatic small cell lung cancer; Rylaze, a product for use as a component of a multi-agent chemotherapeutic regimen for the treatment of acute lymphoblastic leukemia or lymphoblastic lymphoma in adults and pediatric patients aged one month or older who has developed hypersensitivity to E. coli-derived asparaginase; Vyxeos, a liposome for injection, a product for the treatment of adults with newly-diagnosed therapy-related acute myeloid leukemia; and Defitelio for the treatment of adult and pediatric patients with hepatic veno-occlusive disease with renal or pulmonary dysfunction following hematopoietic stem cell transplantation. It has licensing and collaboration agreements with Zymeworks Inc.; Sumitomo Pharma Co., Ltd; Werewolf Therapeutics, Inc.; Codiak BioSciences, Inc.; Ligand Pharmaceuticals Incorporated; XL-protein GmbH; and Redx Pharma plc. The company was incorporated in 2003 and is headquartered in Dublin, Ireland.

Sector

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9/30/18
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6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Jazz Pharmaceuticals Plc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$1.011B	$1.115B	$1.223B	$1.334B	$1.448B	$1.562B	$1.677B	$1.79B	$1.9B	$2.006B	$2.107B	$21.07B
DCF		$969.7M	$924.8M	$877.2M	$827.6M	$776.7M	$724.9M	$672.9M	$621.2M	$570.4M	$520.8M	$5.208B
Value	$12.69B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth -7.9%

Earnings Stability -13%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	25%	27%	30%	24%	24%	10%	-11%	-6.1%	11%	8.6%
ROA	15%	12%	10%	12%	9.6%	5.8%	1.4%	-0.6%	5.2%	4.7%
ROE	21%	21%	18%	16%	17%	6.5%	-8.3%	-7.3%	11%	8.9%

What is the average Net Margin?

The average Net Margin over the past 5 years is +8.67%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -5.03%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +5.52%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -1.95%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +5.85%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -3.22%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	2.73	3.73	2.81	2.36	2.45	2.97	8.56	4.71	5.99	6.32
Debt Equity	0.85	1.16	0.69	0.67	0.58	0.72	1.62	1.90	1.71	1.73
MIN
Graham Stability	-	-	100%	100%	100%	49%	-82%	-160%	-	-160%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 6.32.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.87.

What is the Graham’s Stability?

Graham’s Stability measure stands at -1.55.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	14%	15%	17%	4.8%	0.37%
Net Income	0.64%	-1.5%	20%	-	-77%
Stockholders Equity	10%	6.3%	0.7%	21%	-2.6%
FCF	9%	6.5%	6.5%	-14%	-1.7%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +15.19%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.37%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -1.49%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -76.79%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +6.27%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -2.62%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +6.53%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -1.74%.