What are the investment strengths of Jazz Pharmaceuticals PLC (JAZZ)?

FCF conversion exceptional: 1.2B FCF on 454M operating income (273% conversion) due to non-cash amortization. 12% FCF yield vs 7.4x P/CF suggests undervaluation. Gross margin 88% (vs industry median 55%) provides cushion for R&D investment while maintaining positive operating income despite heavy intangible amortization.

What are the investment risks for Jazz Pharmaceuticals PLC (JAZZ)?

Negative tangible equity (-2.4B) and 5.4B debt creates refinancing risk. Interest expense 201M TTM on declining EBITDA (183M) signals coverage stress. EBITDA 183M barely covers 201M interest - any revenue decline from patent cliffs could trigger covenant issues. Debt/equity 1.37x elevated.

Jazz Pharmaceuticals PLC

JAZZ

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Jazz Pharmaceuticals PLC AI Insights

Informational only. Not investment advice.

As of 2025-12-12

Snapshot

FCF of 1.2B TTM vs net loss of 368M - cash generation masks GAAP losses from 685M intangible amortization[Free Cash Flow TTM]
Intangibles 6.4B (56% of assets) vs equity 4.0B - negative tangible book value of -2.4B signals acquisition-heavy model[Goodwill and Other Intangible Assets]
Debt 5.4B at 1.37x equity with 201M interest expense TTM consuming 14% of operating income[Total Debt]

Watch Triggers

EBITDA TTM: Falls below 150M — Interest coverage already <1x; further decline signals debt distress
Free Cash Flow TTM: Drops below 800M — FCF is the thesis - degradation invalidates valuation support
Total Revenue TTM: Declines >5% YoY — Revenue decline with fixed debt load accelerates leverage concerns

Bull Case

FCF conversion exceptional: 1.2B FCF on 454M operating income (273% conversion) due to non-cash amortization. 12% FCF yield vs 7.4x P/CF suggests undervaluation.

Free Cash Flow TTMPCF RatioOperating Income TTM

Gross margin 88% (vs industry median 55%) provides cushion for R&D investment while maintaining positive operating income despite heavy intangible amortization.

Gross Margin TTMResearch and Development TTM

Bear Case

Negative tangible equity (-2.4B) and 5.4B debt creates refinancing risk. Interest expense 201M TTM on declining EBITDA (183M) signals coverage stress.

Tangible Book ValueTotal DebtEBITDA TTM

EBITDA 183M barely covers 201M interest - any revenue decline from patent cliffs could trigger covenant issues. Debt/equity 1.37x elevated.

EBITDA TTMInterest Expense TTMDebt to Equity

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

45%

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Forward Thesis

FCF yield of 12% (1.2B/10.3B cap) should compress as debt paydown accelerates

1-3ymed

1.2B annual FCF vs 1.0B current debt due
Net debt 4.0B declining trajectory
No dividend/buyback capital drain

FCF 1.2B TTMCurrent debt 1.0BDividends paid 0

R&D intensity at 19% of revenue positions pipeline optionality but delays profitability

3-5ymed

809M R&D spend TTM
Gross margin 88% funds investment
Operating margin only 11%

R&D 809M vs revenue 4.2BGross margin 88%Operating margin 11%

Valuation Context

Caveats

JAZZ Fundamentals

Manufacturing → Chemical Manufacturing

Metric	Value	YoY Growth	Industry Percentile
Market Cap	$15.2B		—
Enterprise Value	$18.77B		—
P/E Ratio	2,202		—
Total Revenue - TTM	$4.44B	+9.2%	—
Earnings Per Share (diluted) - TTM	$0.11	+24.2%	—
Operating Margin - TTM	20.5%	+5.9%	—
Net Margin - TTM	0.66%	-11.2%	—
Free Cash Flow - TTM	$1.14B	-23.2%	—
Return on Common Equity - TTM	0.68%	-11.6%	—
Beta 5Y (Monthly)	unknown		—

JAZZ Dividend History

No dividends

JAZZ Stock Splits

No stock splits

JAZZ SEC Filings

Filing Date	Report Date	Report Type	Filing Link
05/05/26	03/31/26	10-Q	0001232524-26-000025
02/24/26	12/31/25	10-K	0001232524-26-000013
11/05/25	09/30/25	10-Q	0001232524-25-000074
08/06/25	06/30/25	10-Q	0001232524-25-000063
05/07/25	03/31/25	10-Q	0001232524-25-000027
02/26/25	12/31/24	10-K	0001232524-25-000011
11/07/24	09/30/24	10-Q	0001232524-24-000086
08/01/24	06/30/24	10-Q	0001232524-24-000068
05/02/24	03/31/24	10-Q	0001232524-24-000033
02/28/24	12/31/23	10-K	0001232524-24-000015
11/08/23	09/30/23	10-Q	0001232524-23-000052
08/09/23	06/30/23	10-Q	0001232524-23-000037
05/10/23	03/31/23	10-Q	0001232524-23-000026
03/01/23	12/31/22	10-K	0001232524-23-000015
11/09/22	09/30/22	10-Q	0001232524-22-000046
08/03/22	06/30/22	10-Q	0001232524-22-000035
05/04/22	03/31/22	10-Q	0001232524-22-000022
03/01/22	12/31/21	10-K	0001232524-22-000012
11/09/21	09/30/21	10-Q	0001232524-21-000061
08/03/21	06/30/21	10-Q	0001232524-21-000045
05/04/21	03/31/21	10-Q	0001232524-21-000031
02/23/21	12/31/20	10-K	0001232524-21-000016
11/02/20	09/30/20	10-Q	0001232524-20-000071
08/04/20	06/30/20	10-Q	0001232524-20-000054
05/05/20	03/31/20	10-Q	0001232524-20-000034
02/25/20	12/31/19	10-K	0001232524-20-000016
11/05/19	09/30/19	10-Q	0001232524-19-000060
08/06/19	06/30/19	10-Q	0001232524-19-000044
05/07/19	03/31/19	10-Q	0001232524-19-000026
02/26/19	12/31/18	10-K	0001232524-19-000013
11/06/18	09/30/18	10-Q	0001232524-18-000192
08/07/18	06/30/18	10-Q	0001232524-18-000133
05/08/18	03/31/18	10-Q	0001232524-18-000094
02/27/18	12/31/17	10-K	0001232524-18-000018
11/07/17	09/30/17	10-Q	0001232524-17-000179
08/08/17	06/30/17	10-Q	0001232524-17-000134
05/09/17	03/31/17	10-Q	0001232524-17-000111
02/28/17	12/31/16	10-K	0001232524-17-000024
11/08/16	09/30/16	10-Q	0001232524-16-000384
08/09/16	06/30/16	10-Q	0001232524-16-000303
05/10/16	03/31/16	10-Q	0001232524-16-000271
02/23/16	12/31/15	10-K	0001232524-16-000194
11/09/15	09/30/15	10-Q	0001232524-15-000157
08/05/15	06/30/15	10-Q	0001232524-15-000140
05/07/15	03/31/15	10-Q	0001232524-15-000103
02/24/15	12/31/14	10-K	0001232524-15-000030
11/04/14	09/30/14	10-Q	0001232524-14-000137
08/05/14	06/30/14	10-Q	0001232524-14-000080
05/08/14	03/31/14	10-Q	0001232524-14-000049
02/25/14	12/31/13	10-K	0001232524-14-000012
11/05/13	09/30/13	10-Q	0001232524-13-000112
08/06/13	06/30/13	10-Q	0001232524-13-000059
05/07/13	03/31/13	10-Q	0001232524-13-000032
02/26/13	12/31/12	10-K	0001232524-13-000010
11/09/12	09/30/12	10-Q	0001232524-12-000087
08/07/12	06/30/12	10-Q	0001193125-12-341236
05/08/12	03/31/12	10-Q	0001193125-12-218929
02/28/12	12/31/11	10-K	0001193125-12-085849
11/08/11	09/30/11	10-Q	0001193125-11-302373
08/03/11	06/30/11	10-Q	0001193125-11-208257
05/09/11	03/31/11	10-Q	0001193125-11-132323
03/08/11	12/31/10	10-K	0001193125-11-059362
11/08/11	09/30/10	10-Q	0001193125-11-302373
08/11/10	06/30/10	10-Q	0001193125-10-185833
05/06/10	03/31/10	10-Q	0001193125-10-109426
03/04/10	12/31/09	10-K	0001193125-10-047157
11/05/10	09/30/09	10-Q	0001193125-10-248602
11/06/09	09/30/09	10-Q	0001193125-09-226876
08/14/09	06/30/09	10-Q	0001193125-09-174998
05/07/09	03/30/09	10-Q	0001193125-09-102040
03/26/09	12/31/08	10-K	0001193125-09-064139
11/14/08	09/30/08	10-Q	0001193125-08-236481
08/11/08	06/30/08	10-Q	0001193125-08-172245
05/15/08	03/30/08	Unknown	--
03/31/08	12/31/07	10-K	0001193125-08-070827
11/09/07	09/30/07	10-Q	0001193125-07-242277
08/10/07	06/30/07	10-Q	0001193125-07-179116
03/31/07	03/30/07	Unknown	--
12/31/06	12/31/06	Unknown	--
09/30/06	09/30/06	Unknown	--
06/30/06	06/30/06	Unknown	--
03/31/06	03/30/06	Unknown	--
12/31/05	12/31/05	Unknown	--
09/30/05	09/30/05	Unknown	--
06/30/05	06/30/05	Unknown	--
03/31/05	03/30/05	Unknown	--