Jazz Pharmaceuticals

JAZZ

Biotechnology · Healthcare

Price

$254.28

+5.58 (+2.24%)

Market Cap

$15.97B

Exchange

NASDAQ

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Strong

Growth

Good

Cash Flow

Exceptional

Stability

Good

Valuation

Strong

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Share count rising — dilution

+2.2% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 59.7M (2021) → 61.0M (2025)

Winston Score History

The full picture

Jazz Pharmaceuticals is a drug company that makes medicines for people with sleep disorders and cancer. Its biggest product is Xywav, a treatment for narcolepsy — a condition that makes people fall asleep suddenly. Jazz also sells Epidiolex, a cannabis-based medicine for rare forms of epilepsy, and several cancer drugs. Its main customers are hospitals, pharmacies, and specialty clinics.

Jazz earns money by selling its branded prescription drugs, mostly in the United States and Europe. The company is headquartered in Dublin, Ireland, and generates several billion dollars in annual revenue. Its moat comes from owning patents and having drugs that treat rare or hard-to-treat conditions, which limits direct competition. The biggest risk Jazz faces is patent expiration — when patents run out, cheaper generic versions of its drugs can enter the market and sharply cut into sales, which is already a pressure point for some of its older products.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+15.5% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+126.0% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$783M/ year

↓ Declining (-11% vs prior year)

18.3% of revenue

In line with sector average (18%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

1.3%ownership

↓ Declining

Insider ownership declining — could be dilution or selling

Cash Position

Cash flow positive

$2.2B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Jazz Pharmaceuticals is a rare growth stock that's already generating positive cash flow while growing at 16%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

90.4%

Premium pricing power — 90.4% gross margin

Profit after running costs

Operating Margin

20.5%

Excellent — 20.5% operating margin

Return on the money invested

ROCE

15.6%

Strong — 15.6% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth

Sales YoY

+12.6%

Fast-growing sales (+12.6% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

177%

Turns 177% of profit into real cash

Spare cash per sale

FCF Margin

33.5%

Converts sales into free cash efficiently (33.5%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

0.91

Moderate — manageable debt (0.91)

Covers its interest

Interest Cover

7.35x

Adequate interest coverage (7.3x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

16.7x

Fair value — P/E 16.7

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year

P/E vs Forward

+8.4

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (16.7 → 8.3)

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Dividends

Not applicable for this business.

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