Jazz Pharmaceuticals plc Common Stock (Ireland) (JAZZ)

FairStock Score: 52/100 — MIXED

Key Financials

Strengths

• Generates $1.4 billion in annual free cash flow (11.0% yield on market cap)

Concerns

• Trades significantly above Graham Number ($13) with negative 1423% margin of safety—limited downside protection
• Altman Z-Score of 1.5 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Jazz Pharmaceuticals plc Common Stock (Ireland) is a mid-cap healthcare company valued at $12.4 billion. The business generates $4.3 billion in annual revenue with a 4.8% net margin and $1.4 billion in free cash flow. From a quality standpoint, Jazz shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 1.5 warrants caution. On valuation, the stock is commanding a steep 2077.9x multiple, with trades far above its Graham Number ($13) with no margin of safety. Growth dynamics show revenue growing at 10.1% and profit growth of 6.5%. Our composite FairStock Score of 52/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $1.4 billion in annual free cash flow (11.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 2078x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer