Jazz Pharmaceuticals (JAZZ) AI Stock Analysis

• Market Cap: $6.55B
• Dividend Yield: N/A
• Average Volume (3M): 906.91K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.77
• Revenue Growth: 5.76%
• EPS Growth: 49.58%
• Country: US
• Employees: 2,800
• Sector: Healthcare
• Sector Strength: 48
• Industry: Biotechnology
• EPS (TTM): 1.68
• Shares Outstanding: 60,511,020
• 10 Day Avg. Volume: 641,049
• 30 Day Avg. Volume: 906,908
• PEG Ratio: 1.23
• Price to Book (P/B): 3.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.88
• Enterprise Value/Market Cap: 2.27
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 4.31
• Enterprise Value/Ebitda: 2.69
• 1Y Price Target: $182.73
• Price Target Upside: 69.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 73 Outperform
• Price Target: $121.00 ▲(12.55%Upside)

Jazz Pharmaceuticals' strong financial performance and positive earnings call outlook are key strengths, supported by robust cash flow and strategic acquisitions. However, moderate leverage and oncology segment challenges present potential risks. Technical indicators suggest a neutral market sentiment, and the valuation is fair with a P/E ratio of 14.632.

Positive Factors

Market Potential

The label expansion into 1L maintenance should provide meaningful growth driven by expansion into a larger patient pool in the earlier line along with a longer duration of therapy.

Regulatory Approval

Zepzelca in combination with Tecentriq was granted priority review for 1L maintenance therapy in extensive-stage small cell lung cancer, following positive survival benefit demonstrated in the Phase 3 IMforte data.

Negative Factors

Competition

Near term competition from Imdeltra in 2L may lead to slightly lower 2025 sales.

Financial Performance

Multiple changes across the income statement from the Chimerix deal and a one-time litigation settlement charge resulted in a messy print.

Jazz Pharmaceuticals Business Overview & Revenue Model

Company Description

Jazz Pharmaceuticals plc, a biopharmaceutical company, identifies, develops, and commercializes pharmaceutical products for various 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, including hematologic and solid tumors. Its lead marketed products include Xyrem, an oral solution for the treatment of cataplexy and excessive daytime sleepiness (EDS) in narcolepsy patients seven years of age and older; Sunosi for the treatment of EDS in patients with narcolepsy and obstructive sleep apnea; Erwinaze to treat acute lymphoblastic leukemia; Defitelio for the treatment of adult and pediatric patients with hepatic veno-occlusive disease; Vyxeos liposome for injection, a product for the treatment of adults with newly-diagnosed therapy-related acute myeloid leukemia; and Zepzelca for the treatment of adult patients with metastatic small cell lung cancer. The company also offers Xywav, an oxybate product candidate, to treat EDS and cataplexy with narcolepsy and idiopathic hypersomnia; JZP-324, a low sodium oxybate formulation with the potential to provide a clinically meaningful option for narcolepsy patients; JZP385, a T-type calcium channel modulator, for the treatment of essential tremor; JZP458, a recombinant Erwinia asparaginase, for use as a component of a multi-agent chemotherapeutic regimen in the treatment of pediatric and adult patients; and JZP150 for treatment of post-traumatic stress disorder. The company has licensing and collaboration agreements with ImmunoGen, Inc.; Codiak BioSciences, Inc.; Pfenex, Inc.; XL-protein GmbH; and Redx Pharma plc. Jazz Pharmaceuticals plc was incorporated in 2003 and is headquartered in Dublin, Ireland.

How the Company Makes Money

Jazz Pharmaceuticals generates revenue primarily through the sale of its pharmaceutical products. The company's key revenue streams include its neuroscience portfolio, led by Xyrem and Xywav, which are primarily used to treat narcolepsy, a chronic sleep disorder. These products contribute significantly to Jazz's earnings, given their market leadership in this therapeutic area. Additionally, Jazz's oncology portfolio, including Zepzelca and Rylaze, provides substantial revenue growth opportunities. The company also engages in strategic partnerships and collaborations with other pharmaceutical and biotechnology firms to bolster its research and development efforts, leading to potential milestone and royalty payments. Furthermore, Jazz invests in expanding its product pipeline through acquisitions and licensing agreements, ensuring a steady flow of innovative therapies that can drive future revenue growth.

Jazz Pharmaceuticals Financial Statement Overview

Summary

Jazz Pharmaceuticals demonstrates strong financial performance with robust profitability and cash flow management, highlighted by a consistent gross profit margin and impressive free cash flow growth. However, moderate leverage due to significant debt levels suggests careful management is needed to mitigate potential risks.

Income Statement

Jazz Pharmaceuticals shows a strong performance in profitability metrics, with a consistent gross profit margin of around 85%. The TTM net profit margin stands at approximately 11.86%, reflecting solid profitability, though slightly lower than the previous year due to a decrease in net income. Revenue growth has been positive, with a 5.55% increase from 2022 to 2023, although TTM figures show a slight decline compared to 2024. The EBIT and EBITDA margins have remained stable, highlighting efficient operational management.

Balance Sheet

The company's balance sheet reflects moderate leverage with a debt-to-equity ratio of approximately 1.3 TTM, which is manageable but indicates reliance on debt. Stockholders' equity has improved, showing a strong equity ratio of 36.2%. Return on Equity has improved significantly, marked at 11.55% TTM, reflecting effective use of equity despite a slight decline in net income. However, the significant debt levels pose a potential risk if not managed carefully.

Cash Flow

Jazz Pharmaceuticals demonstrates robust cash flow management with a strong operating cash flow to net income ratio of 3.23 TTM, indicating high cash generation efficiency. The free cash flow has been increasing, with a healthy growth rate of 10.4% from 2023 to 2024. The free cash flow to net income ratio is impressive at 3.09, reinforcing the company's ability to generate sufficient cash to support operations and growth.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.06B	4.07B	3.83B	3.66B	3.09B	2.36B
	Gross Profit
3.45B	3.62B	3.40B	3.12B	2.65B	2.21B
	EBIT
594.53M	716.63M	578.58M	512.27M	170.28M	765.46M
	EBITDA
1.28B	1.37B	1.23B	553.78M	1.03B	649.65M
	Net Income Common Stockholders
482.20M	560.12M	414.83M	-214.14M	-328.95M	238.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.57B	2.99B	1.63B	881.48M	591.45M	2.13B
	Total Assets
11.53B	12.01B	11.39B	10.84B	12.30B	6.54B
	Total Debt
5.42B	6.16B	5.79B	5.80B	6.14B	2.23B
	Net Debt
3.56B	3.75B	4.29B	4.91B	5.55B	1.18B
	Total Liabilities
7.36B	7.92B	7.66B	7.75B	8.33B	2.88B
	Stockholders Equity
4.17B	4.09B	3.74B	3.09B	3.97B	3.66B
Cash Flow		Free Cash Flow
1.49B	1.35B	1.07B	773.78M	732.98M	520.39M
	Operating Cash Flow
1.56B	1.40B	1.09B	1.27B	778.51M	899.65M
	Investing Cash Flow
-405.22M	-508.19M	-163.06M	-446.23M	-5.21B	-1.01B
	Financing Cash Flow
-736.40M	20.52M	-305.25M	-529.49M	3.97B	528.07M

Jazz Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 107.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JAZZ, the sentiment is Negative. The current price of 107.51 is below the 20-day moving average (MA) of 109.16, below the 50-day MA of 108.01, and below the 200-day MA of 118.21, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 45.65 is Neutral, neither overbought nor oversold. The STOCH value of 13.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JAZZ.

Jazz Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HALO	76 Outperform	$6.55B	14.01	147.06%	―	25.65%	57.10%
JAZZ	73 Outperform	$6.55B	14.50	12.25%	―	5.76%	49.58%
BBIO	58 Neutral	$7.60B	―	35.68%	―	-41.71%	-9.37%
MDGL	56 Neutral	$6.28B	―	-50.16%	―	―	21.83%
ROIV	56 Neutral	$7.78B	1.93	-8.56%	―	-38.94%	-104.46%
LEGN	55 Neutral	$6.42B	―	-20.00%	―	112.46%	54.33%
Sector *	53 Neutral	$5.24B	3.32	-44.36%	6.63%	16.78%	-0.12%

Jazz Pharmaceuticals Corporate Events

Jazz Pharmaceuticals Completes Acquisition of Chimerix

On April 21, 2025, Jazz Pharmaceuticals announced the completion of its acquisition of Chimerix, Inc. for approximately $935 million. This acquisition enhances Jazz’s oncology pipeline with the addition of dordaviprone, a novel treatment under FDA Priority Review for H3 K27M-mutant diffuse glioma. The merger positions Jazz to potentially offer the first FDA-approved therapy for this condition, reflecting a significant commercial opportunity and reinforcing its commitment to addressing rare diseases with unmet needs.