ORGANON & CO (OGN) Stock Fundamental Analysis
USA - NYSE:OGN - US68622V1061 - Common Stock
11.01 USD
+0.07 (+0.64%)
11.05 USD
+0.04 (+0.36%)
Taking everything into account, OGN scores 5 out of 10 in our fundamental rating. OGN was compared to 196 industry peers in the Pharmaceuticals industry. OGN scores excellent on profitability, but there are concerns on its financial health. OGN is valued quite cheap, but it does not seem to be growing.
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.
Each year in the past 5 years OGN has been profitable.
Each year in the past 5 years OGN had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 5.19%, OGN belongs to the best of the industry, outperforming 87.82% of the companies in the same industry.
OGN has a better Return On Equity (95.50%) than 98.98% of its industry peers.
The Return On Invested Capital of OGN (10.03%) is better than 86.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OGN is below the industry average of 15.30%.
| 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 Profit Margin of 11.14%. This is amongst the best in the industry. OGN outperforms 87.31% of its industry peers.
OGN's Profit Margin has declined in the last couple of years.
OGN's Operating Margin of 21.64% is amongst the best of the industry. OGN outperforms 89.34% of its industry peers.
OGN's Operating Margin has declined in the last couple of years.
The Gross Margin of OGN (56.26%) is better than 65.48% of its industry peers.
In the last couple of years the Gross Margin of OGN has declined.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so OGN is creating value.
The number of shares outstanding for OGN has been increased compared to 1 year ago.
Compared to 5 years ago, OGN has more shares outstanding
The debt/assets ratio for OGN has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.21, we must say that OGN is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.21, OGN perfoms like the industry average, outperforming 59.90% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 18.46, OGN is doing good in the industry, outperforming 77.16% 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.
Looking at the Debt to Equity ratio, with a value of 11.98, OGN is doing worse than 81.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.98 | ||
| Debt/FCF | 18.46 | ||
| Altman-Z | 1.21 |
ROIC/WACC1.4
WACC7.15%
2.3 Liquidity
OGN has a Current Ratio of 1.65. This is a normal value and indicates that OGN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.65, OGN is doing worse than 65.48% of the companies in the same industry.
OGN has a Quick Ratio of 1.13. This is a normal value and indicates that OGN is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of OGN (1.13) is worse than 71.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
OGN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.33%.
The earnings per share for OGN have been decreasing by -23.48% on average. This is quite bad
OGN shows a decrease in Revenue. In the last year, the revenue decreased by -1.02%.
The Revenue has been decreasing by -3.81% on average over the past years.
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
OGN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.39% yearly.
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-5.92%
EPS Next 2Y-0.32%
EPS Next 3Y1.97%
EPS Next 5Y0.39%
Revenue Next Year-1.85%
Revenue Next 2Y-0.54%
Revenue Next 3Y-0.01%
Revenue Next 5Y0.38%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 2.91 indicates a rather cheap valuation of OGN.
Based on the Price/Earnings ratio, OGN is valued cheaper than 97.97% of the companies in the same industry.
When comparing the Price/Earnings ratio of OGN to the average of the S&P500 Index (27.86), we can say OGN is valued rather cheaply.
A Price/Forward Earnings ratio of 2.70 indicates a rather cheap valuation of OGN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OGN indicates a rather cheap valuation: OGN is cheaper than 98.98% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.32. OGN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.91 | ||
| Fwd PE | 2.7 |
4.2 Price Multiples
OGN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OGN is cheaper than 95.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, OGN is valued cheaply inside the industry as 95.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.94 | ||
| EV/EBITDA | 6.65 |
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-0.32%
EPS Next 3Y1.97%
5. Dividend
5.1 Amount
OGN has a yearly dividend return of 0.73%, which is pretty low.
Compared to an average industry Dividend Yield of 6.27, OGN pays a better dividend. On top of this OGN pays more dividend than 89.34% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, OGN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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
32.71% of the earnings are spent on dividend by OGN. This is a low number and sustainable payout ratio.
DP32.71%
EPS Next 2Y-0.32%
EPS Next 3Y1.97%
11.01
+0.07 (+0.64%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners84.79%
Inst Owner Change0%
Ins Owners0.35%
Ins Owner Change8.46%
Market Cap2.86B
Analysts50.67
Price Target13.06 (18.62%)
Short Float %5.29%
Short Ratio3.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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)0%
PT rev (3m)-7.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.61%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-0.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.76%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.91 | ||
| Fwd PE | 2.7 | ||
| P/S | 0.46 | ||
| P/FCF | 5.94 | ||
| P/OCF | 3.47 | ||
| P/B | 3.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.65 |
EPS(TTM)3.79
EY34.42%
EPS(NY)4.08
Fwd EY37.09%
FCF(TTM)1.85
FCFY16.84%
OCF(TTM)3.18
OCFY28.86%
SpS24.16
BVpS2.82
TBVpS-20.42
PEG (NY)N/A
PEG (5Y)N/A
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%
ROICexcg growth 3Y-23.31%
ROICexcg 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 | 1.21 |
F-Score5
WACC7.15%
ROIC/WACC1.4
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-5.92%
EPS Next 2Y-0.32%
EPS Next 3Y1.97%
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-0.54%
Revenue Next 3Y-0.01%
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%