ORGANON & CO (OGN) Stock Fundamental Analysis
USA - NYSE:OGN - US68622V1061 - Common Stock
7.53 USD
-0.09 (-1.18%)
7.7 USD
+0.17 (+2.26%)
Overall OGN gets a fundamental rating of 5 out of 10. We evaluated OGN against 191 industry peers in the Pharmaceuticals industry. While OGN belongs to the best of the industry regarding profitability, there are concerns on its financial health. OGN is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
OGN had positive earnings in the past year.
In the past year OGN had a positive cash flow from operations.
OGN had positive earnings in each of the past 5 years.
OGN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
OGN has a Return On Assets of 5.19%. This is amongst the best in the industry. OGN outperforms 87.96% of its industry peers.
OGN has a Return On Equity of 95.50%. This is amongst the best in the industry. OGN outperforms 99.48% of its industry peers.
With an excellent Return On Invested Capital value of 10.03%, OGN belongs to the best of the industry, outperforming 87.96% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for OGN is below the industry average of 15.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.19% | ||
| ROE | 95.5% | ||
| ROIC | 10.03% |
ROA(3y)7.82%
ROA(5y)11.49%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.92%
ROIC(5y)16.57%
1.3 Margins
OGN has a better Profit Margin (11.14%) than 85.34% of its industry peers.
OGN's Profit Margin has declined in the last couple of years.
OGN has a Operating Margin of 21.64%. This is amongst the best in the industry. OGN outperforms 89.01% of its industry peers.
In the last couple of years the Operating Margin of OGN has declined.
The Gross Margin of OGN (56.26%) is better than 66.49% of its industry peers.
OGN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.64% | ||
| PM (TTM) | 11.14% | ||
| GM | 56.26% |
OM growth 3Y-8.47%
OM growth 5Y-14.29%
PM growth 3Y-14.29%
PM growth 5Y-20.08%
GM growth 3Y-2.36%
GM growth 5Y-3.89%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), OGN is creating value.
OGN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for OGN has been increased compared to 5 years ago.
OGN has a better debt/assets ratio than last year.
2.2 Solvency
OGN has an Altman-Z score of 1.17. This is a bad value and indicates that OGN is not financially healthy and even has some risk of bankruptcy.
OGN has a Altman-Z score (1.17) which is in line with its industry peers.
The Debt to FCF ratio of OGN is 18.46, which is on the high side as it means it would take OGN, 18.46 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 18.46, OGN is in the better half of the industry, outperforming 76.44% of the companies in the same industry.
A Debt/Equity ratio of 11.98 is on the high side and indicates that OGN has dependencies on debt financing.
OGN's Debt to Equity ratio of 11.98 is on the low side compared to the rest of the industry. OGN is outperformed by 82.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.98 | ||
| Debt/FCF | 18.46 | ||
| Altman-Z | 1.17 |
ROIC/WACC1.56
WACC6.42%
2.3 Liquidity
A Current Ratio of 1.65 indicates that OGN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.65, OGN is doing worse than 65.97% of the companies in the same industry.
A Quick Ratio of 1.13 indicates that OGN should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.13, OGN is not doing good in the industry: 73.30% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The earnings per share for OGN have decreased by -7.33% in the last year.
OGN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.48% yearly.
OGN shows a decrease in Revenue. In the last year, the revenue decreased by -1.02%.
OGN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.81% yearly.
EPS 1Y (TTM)-7.33%
EPS 3Y-13.45%
EPS 5Y-23.48%
EPS Q2Q%-10.71%
Revenue 1Y (TTM)-1.02%
Revenue growth 3Y0.52%
Revenue growth 5Y-3.81%
Sales Q2Q%-0.81%
3.2 Future
The Earnings Per Share is expected to grow by 0.39% on average over the next years.
OGN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.38% yearly.
EPS Next Y-5.43%
EPS Next 2Y-0.35%
EPS Next 3Y0.88%
EPS Next 5Y0.39%
Revenue Next Year-1.85%
Revenue Next 2Y-0.61%
Revenue Next 3Y-0.07%
Revenue Next 5Y0.38%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 1.99 indicates a rather cheap valuation of OGN.
Based on the Price/Earnings ratio, OGN is valued cheaper than 98.43% of the companies in the same industry.
OGN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.89.
The Price/Forward Earnings ratio is 1.85, which indicates a rather cheap valuation of OGN.
99.48% of the companies in the same industry are more expensive than OGN, based on the Price/Forward Earnings ratio.
OGN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.99 | ||
| Fwd PE | 1.85 |
4.2 Price Multiples
OGN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OGN is cheaper than 96.34% of the companies in the same industry.
97.38% of the companies in the same industry are more expensive than OGN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.06 | ||
| EV/EBITDA | 6.13 |
4.3 Compensation for Growth
The decent profitability rating of OGN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.35%
EPS Next 3Y0.88%
5. Dividend
5.1 Amount
OGN has a Yearly Dividend Yield of 1.19%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of OGN has falen by -20.23%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
OGN's Dividend Yield is rather good when compared to the industry average which is at 6.90. OGN pays more dividend than 91.10% of the companies in the same industry.
With a Dividend Yield of 1.19, OGN pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
5.2 History
OGN has been paying a dividend for over 5 years, so it has already some track record.
OGN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
OGN pays out 32.71% of its income as dividend. This is a sustainable payout ratio.
DP32.71%
EPS Next 2Y-0.35%
EPS Next 3Y0.88%
7.53
-0.09 (-1.18%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners84.79%
Inst Owner Change-0.25%
Ins Owners0.35%
Ins Owner Change2.26%
Market Cap1.96B
Revenue(TTM)6.28B
Net Income(TTM)700.00M
Analysts48
Price Target11.05 (46.75%)
Short Float %4.69%
Short Ratio3.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
Yearly Dividend1.16
Dividend Growth(5Y)N/A
DP32.71%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.45%
Min EPS beat(2)4.46%
Max EPS beat(2)12.44%
EPS beat(4)3
Avg EPS beat(4)3.77%
Min EPS beat(4)-4.65%
Max EPS beat(4)12.44%
EPS beat(8)6
Avg EPS beat(8)3.64%
EPS beat(12)8
Avg EPS beat(12)4.91%
EPS beat(16)12
Avg EPS beat(16)7.23%
Revenue beat(2)1
Avg Revenue beat(2)0.53%
Min Revenue beat(2)-0.66%
Max Revenue beat(2)1.72%
Revenue beat(4)2
Avg Revenue beat(4)0.07%
Min Revenue beat(4)-1.12%
Max Revenue beat(4)1.72%
Revenue beat(8)4
Avg Revenue beat(8)-0.27%
Revenue beat(12)6
Avg Revenue beat(12)-0.38%
Revenue beat(16)10
Avg Revenue beat(16)0.07%
PT rev (1m)-15.36%
PT rev (3m)-16.67%
EPS NQ rev (1m)0.52%
EPS NQ rev (3m)-0.9%
EPS NY rev (1m)0.53%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)0.51%
Revenue NQ rev (3m)1.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.99 | ||
| Fwd PE | 1.85 | ||
| P/S | 0.31 | ||
| P/FCF | 4.06 | ||
| P/OCF | 2.37 | ||
| P/B | 2.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.13 |
EPS(TTM)3.79
EY50.33%
EPS(NY)4.08
Fwd EY54.2%
FCF(TTM)1.85
FCFY24.62%
OCF(TTM)3.18
OCFY42.2%
SpS24.16
BVpS2.82
TBVpS-20.42
PEG (NY)N/A
PEG (5Y)N/A
Graham Number15.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.19% | ||
| ROE | 95.5% | ||
| ROCE | 12.7% | ||
| ROIC | 10.03% | ||
| ROICexc | 10.62% | ||
| ROICexgc | 26.42% | ||
| OM | 21.64% | ||
| PM (TTM) | 11.14% | ||
| GM | 56.26% | ||
| FCFM | 7.67% |
ROA(3y)7.82%
ROA(5y)11.49%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.92%
ROIC(5y)16.57%
ROICexc(3y)13.99%
ROICexc(5y)17.59%
ROICexgc(3y)39.55%
ROICexgc(5y)50.27%
ROCE(3y)16.36%
ROCE(5y)22.15%
ROICexgc growth 3Y-23.31%
ROICexgc growth 5Y-17.1%
ROICexc growth 3Y-16.16%
ROICexc growth 5Y-19%
OM growth 3Y-8.47%
OM growth 5Y-14.29%
PM growth 3Y-14.29%
PM growth 5Y-20.08%
GM growth 3Y-2.36%
GM growth 5Y-3.89%
F-Score5
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.98 | ||
| Debt/FCF | 18.46 | ||
| Debt/EBITDA | 5.23 | ||
| Cap/Depr | 107.84% | ||
| Cap/Sales | 5.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 49.23% | ||
| Profit Quality | 68.86% | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 1.17 |
F-Score5
WACC6.42%
ROIC/WACC1.56
Cap/Depr(3y)126.74%
Cap/Depr(5y)142.32%
Cap/Sales(3y)4.85%
Cap/Sales(5y)4.63%
Profit Quality(3y)60.39%
Profit Quality(5y)86.13%
High Growth Momentum
Growth
EPS 1Y (TTM)-7.33%
EPS 3Y-13.45%
EPS 5Y-23.48%
EPS Q2Q%-10.71%
EPS Next Y-5.43%
EPS Next 2Y-0.35%
EPS Next 3Y0.88%
EPS Next 5Y0.39%
Revenue 1Y (TTM)-1.02%
Revenue growth 3Y0.52%
Revenue growth 5Y-3.81%
Sales Q2Q%-0.81%
Revenue Next Year-1.85%
Revenue Next 2Y-0.61%
Revenue Next 3Y-0.07%
Revenue Next 5Y0.38%
EBIT growth 1Y2.41%
EBIT growth 3Y-7.99%
EBIT growth 5Y-17.56%
EBIT Next Year10.26%
EBIT Next 3Y5.71%
EBIT Next 5Y5.04%
FCF growth 1Y28.53%
FCF growth 3Y-35.21%
FCF growth 5Y-26.14%
OCF growth 1Y13.93%
OCF growth 3Y-27.44%
OCF growth 5Y-19.44%
ORGANON & CO / OGN FAQ
What is the fundamental rating for OGN stock?
ChartMill assigns a fundamental rating of 5 / 10 to OGN.
Can you provide the valuation status for ORGANON & CO?
ChartMill assigns a valuation rating of 8 / 10 to ORGANON & CO (OGN). This can be considered as Undervalued.
What is the profitability of OGN stock?
ORGANON & CO (OGN) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for OGN stock?
The Earnings per Share (EPS) of ORGANON & CO (OGN) is expected to decline by -5.43% in the next year.
Can you provide the dividend sustainability for OGN stock?
The dividend rating of ORGANON & CO (OGN) is 4 / 10 and the dividend payout ratio is 32.71%.