OGN Stock Analysis: Organon | NYSE
Drug Manufacturers - General | NYSE, USA | Market Cap: 3.585m USD | 12M Return: 47.9% | US68622V1061 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 32.9M
EPS Trend: -85.9%
Qual. Beats: 0
Rev. Trend: -37.0%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality
Organon & Co. is a global pharmaceutical company focused on women’s health, biosimilars, and established legacy brands. Its primary portfolio includes reproductive health solutions such as long-acting contraceptives and fertility treatments, alongside a biosimilars division targeting immunology and oncology.
The company operates a diverse business model that leverages high-margin established brands in therapeutic areas like respiratory, cardiovascular, and dermatology to fund growth in specialized womens health medical devices. In the pharmaceutical sector, biosimilars represent a critical growth vertical as they offer lower-cost alternatives to off-patent biologic reference products.
Organon distributes its products through a multi-channel network including drug wholesalers, government agencies, and pharmacy benefit managers across more than 140 countries. Investors may find it useful to examine the companys valuation metrics on ValueRay to better understand its market position.
- Nexplanon growth and fertility market expansion drive core womens health revenue
- Established Brands portfolio faces continued pricing pressure and generic erosion
- Biosimilar adoption rates in oncology and immunology impact long-term margins
- High debt leverage necessitates consistent free cash flow for interest payments
- Strategic acquisitions in womens health pipeline influence future valuation multiples
| Net Income: 209.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA 0.21 > 1.0 |
| NWC/Revenue: 40.72% < 20% (prev 29.01%; Δ 11.71% < -1%) |
| CFO/TA 0.06 > 3% & CFO 737.0m > Net Income 209.0m |
| Net Debt (7.42b) to EBITDA (1.31b): 5.68 < 3 |
| Current Ratio: 1.95 > 1.5 & < 3 |
| Outstanding Shares: last quarter (270.4m) vs 12m ago 3.96% < -2% |
| Gross Margin: 52.98% > 18% (prev 56.26%; Δ -3.29% > 0.5%) |
| Asset Turnover: 45.93% > 50% (prev 46.53%; Δ -0.59% > 0%) |
| Interest Coverage Ratio: 2.05 > 6 (EBIT TTM 959.0m / Interest Expense TTM 468.0m) |
| A: 0.19 (Total Current Assets 5.11b - Total Current Liabilities 2.62b) / Total Assets 13.2b |
| B: 0.10 (Retained Earnings 1.35b / Total Assets 13.2b) |
| C: 0.07 (EBIT TTM 959.0m / Avg Total Assets 13.3b) |
| D: 0.08 (Book Value of Equity 1.01b / Total Liabilities 12.2b) |
| Altman-Z'' = 2.15 = BBB |
| DSRI: 1.01 (Receivables 1.49b/1.51b, Revenue 6.13b/6.28b) |
| GMI: 1.06 (GM 56.26% / 52.98%) |
| AQI: 0.91 (AQ_t 0.51 / AQ_t-1 0.56) |
| SGI: 0.98 (Revenue 6.13b / 6.28b) |
| TATA: -0.04 (NI 209.0m - CFO 737.0m) / TA 13.2b) |
| Beneish M = -3.03 (Cap -4..+1) = AA |
As of August 14, 2026, the stock is trading at USD 13.72 with a total of 1,670,116 shares traded. Over the past week, the price has changed by +1.25%, over one month by +1.63%, over three months by +2.85% and over the past year by +47.88%.
Current recommended Stop Loss: 13.60 (which is 0.9% or 2.4 ATR below the current price).
Organon has received a consensus analysts rating of 3.00. Therefore, it is recommended to hold OGN.
- StrongBuy: 0
- Buy: 2
- Hold: 3
- Sell: 2
- StrongSell: 0
| Analysts Target Price | 11.3 | -18% |
P/E Trailing = 17.5
P/E Forward = 5.0891
P/S = 0.5851
P/B = 3.5554
Revenue TTM = 6.13b USD
EBIT TTM = 959.0m USD
EBITDA TTM = 1.31b USD
Long Term Debt = 8.48b USD (from longTermDebt, last quarter)
Short Term Debt = 74.0m USD (from shortTermDebt, last quarter)
Debt = 8.55b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 7.42b USD (calculated: Debt 8.55b - CCE 1.13b)
Enterprise Value = 11.0b USD (3.58b + Debt 8.55b - CCE 1.13b)
Interest Coverage Ratio = 2.05 (Ebit TTM 959.0m / Interest Expense TTM 468.0m)
EV/FCF = 22.10x (Enterprise Value 11.0b / FCF TTM 498.0m)
FCF Yield = 4.52% (FCF TTM 498.0m / Enterprise Value 11.0b)
FCF Margin = 8.13% (FCF TTM 498.0m / Revenue TTM 6.13b)
Net Margin = 3.41% (Net Income TTM 209.0m / Revenue TTM 6.13b)
Gross Margin = 52.98% ((Revenue TTM 6.13b - Cost of Revenue TTM 2.88b) / Revenue TTM)
Gross Margin QoQ = 54.36% (prev 53.63%)
Tobins Q-Ratio = 0.84 (Enterprise Value 11.0b / Total Assets 13.2b)
Interest Expense / Debt = 5.47% (Interest Expense 468.0m / Debt 8.55b)
Taxrate = 40.98% (75.0m / 183.0m)
NOPAT = 566.0m (EBIT 959.0m * (1 - 40.98%))
Current Ratio = 1.95 (Total Current Assets 5.11b / Total Current Liabilities 2.62b)
Debt / Equity = 8.50 (Debt 8.55b / totalStockholderEquity, last quarter 1.01b)
Debt / EBITDA = 5.68 (Net Debt 7.42b / EBITDA 1.31b)
Debt / FCF = 14.90 (Net Debt 7.42b / FCF TTM 498.0m)
Total Stockholder Equity = 891.8m (last 4 quarters mean from totalStockholderEquity)
RoA = 1.57% (Net Income 209.0m / Total Assets 13.2b)
RoE = 23.44% (Net Income TTM 209.0m / Total Stockholder Equity 891.8m)
RoCE = 10.23% (EBIT 959.0m / Capital Employed (Equity 891.8m + L.T.Debt 8.48b))
RoIC = 5.48% (NOPAT 566.0m / Invested Capital 10.3b)
WACC = 5.02% (E(3.58b)/V(12.1b) * Re(9.28%) + D(8.55b)/V(12.1b) * Rd(5.47%) * (1-Tc(0.41)))
Discount Rate = 9.28% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 74.90 | Cagr: 2.05%
[DCF] Terminal Value 75.87% ; FCFF base≈491.6m ; Y1≈507.2m ; Y5≈567.4m
[DCF] Fair Price = 5.15 (EV 8.77b - Net Debt 7.42b = Equity 1.35b / Shares 262.6m; r=8.35% [WACC [floored]]; 5y FCF grow 3.32% → 2.50% )
EPS Correlation: -85.87 | EPS CAGR: -8.43% | SUE: -0.54 | # QB: 0
Revenue Correlation: -37.02 | Revenue CAGR: -0.62% | SUE: 0.08 | # QB: 0
EPS current Quarter (2026-09-30): EPS=1.05 | Chg30d=+11.99% | Revisions=+0% | Analysts=1
EPS current Year (2026-12-31): EPS=3.62 | Chg30d=+5.15% | Revisions=+0% | GrowthEPS=-1.1% | GrowthRev=-1.5%
EPS next Year (2027-12-31): EPS=3.64 | Chg30d=-0.63% | Revisions=+17% | GrowthEPS=+0.5% | GrowthRev=+1.8%
[Analyst] Revisions Ratio: +17% (up=2, down=1)