ORGANON & CO (OGN) Stock Fundamental Analysis
NYSE:OGN - New York Stock Exchange, Inc. - US68622V1061 - Common Stock - Currency: USD
OGN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 198 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 has a bad growth rate and is valued cheaply.
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.
In the past 5 years OGN always reported a positive cash flow from operatings.
1.2 Ratios
OGN has a better Return On Assets (6.59%) than 90.91% of its industry peers.
OGN has a Return On Equity of 183.05%. This is amongst the best in the industry. OGN outperforms 99.49% of its industry peers.
The Return On Invested Capital of OGN (11.15%) is better than 87.88% of its industry peers.
OGN had an Average Return On Invested Capital over the past 3 years of 12.92%. This is significantly below the industry average of 41.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.59% | ||
| ROE | 183.05% | ||
| ROIC | 11.15% |
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 (13.49%) than 89.39% of its industry peers.
OGN's Profit Margin has declined in the last couple of years.
OGN has a better Operating Margin (22.88%) than 88.38% of its industry peers.
In the last couple of years the Operating Margin of OGN has declined.
The Gross Margin of OGN (58.02%) is better than 66.67% of its industry peers.
OGN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.88% | ||
| PM (TTM) | 13.49% | ||
| GM | 58.02% |
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.
Compared to 1 year ago, OGN has more shares outstanding
Compared to 5 years ago, OGN has more shares outstanding
Compared to 1 year ago, OGN has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.23, we must say that OGN is in the distress zone and has some risk of bankruptcy.
OGN has a better Altman-Z score (1.23) than 64.14% of its industry peers.
The Debt to FCF ratio of OGN is 15.10, which is on the high side as it means it would take OGN, 15.10 years of fcf income to pay off all of its debts.
OGN has a better Debt to FCF ratio (15.10) than 78.28% of its industry peers.
A Debt/Equity ratio of 18.77 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 18.77, OGN is doing worse than 83.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.77 | ||
| Debt/FCF | 15.1 | ||
| Altman-Z | 1.23 |
ROIC/WACC1.61
WACC6.91%
2.3 Liquidity
A Current Ratio of 1.60 indicates that OGN should not have too much problems paying its short term obligations.
The Current ratio of OGN (1.60) is worse than 69.70% of its industry peers.
OGN has a Quick Ratio of 1.11. 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 (1.11) is worse than 73.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The earnings per share for OGN have decreased by -8.64% 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 small growth in Revenue. In the last year, the Revenue has grown by 2.24%.
OGN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.81% yearly.
EPS 1Y (TTM)-8.64%
EPS 3Y-13.45%
EPS 5Y-23.48%
EPS Q2Q%-16.39%
Revenue 1Y (TTM)2.24%
Revenue growth 3Y0.52%
Revenue growth 5Y-3.81%
Sales Q2Q%-6.72%
3.2 Future
Based on estimates for the next years, OGN will show a small growth in Earnings Per Share. The EPS will grow by 1.57% on average per year.
Based on estimates for the next years, OGN will show a small growth in Revenue. The Revenue will grow by 0.71% on average per year.
EPS Next Y-7.36%
EPS Next 2Y-0.93%
EPS Next 3Y0.17%
EPS Next 5Y1.57%
Revenue Next Year-2.86%
Revenue Next 2Y-0.99%
Revenue Next 3Y-0.35%
Revenue Next 5Y0.71%
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
OGN is valuated cheaply with a Price/Earnings ratio of 2.24.
Based on the Price/Earnings ratio, OGN is valued cheaply inside the industry as 97.47% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.18. OGN is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 2.17, the valuation of OGN can be described as very cheap.
OGN's Price/Forward Earnings ratio is rather cheap when compared to the industry. OGN is cheaper than 98.48% of the companies in the same industry.
OGN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.24 | ||
| Fwd PE | 2.17 |
4.2 Price Multiples
OGN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OGN is cheaper than 92.42% of the companies in the same industry.
98.48% 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 | 3.87 | ||
| EV/EBITDA | 6.14 |
4.3 Compensation for Growth
OGN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.93%
EPS Next 3Y0.17%
5. Dividend
5.1 Amount
With a yearly dividend of 0.83%, OGN is not a good candidate for dividend investing.
In the last 3 months the price of OGN has falen by -38.37%. 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 4.18. OGN pays more dividend than 90.40% of the companies in the same industry.
With a Dividend Yield of 0.83, OGN pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
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 34.38% of its income as dividend. This is a sustainable payout ratio.
DP34.38%
EPS Next 2Y-0.93%
EPS Next 3Y0.17%
NYSE:OGN (5/5/2025, 3:42:05 PM)
8.75
-0.84 (-8.76%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners84.68%
Inst Owner Change-0.3%
Ins Owners0.21%
Ins Owner Change32.36%
Market Cap2.27B
Analysts52
Price Target19.18 (119.2%)
Short Float %6.78%
Short Ratio4.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Yearly Dividend1.16
Dividend Growth(5Y)N/A
DP34.38%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.91%
Min EPS beat(2)-4.65%
Max EPS beat(2)2.83%
EPS beat(4)3
Avg EPS beat(4)6.43%
Min EPS beat(4)-4.65%
Max EPS beat(4)24.44%
EPS beat(8)5
Avg EPS beat(8)4.16%
EPS beat(12)8
Avg EPS beat(12)6.24%
EPS beat(16)12
Avg EPS beat(16)7.73%
Revenue beat(2)1
Avg Revenue beat(2)-0.4%
Min Revenue beat(2)-1.12%
Max Revenue beat(2)0.32%
Revenue beat(4)2
Avg Revenue beat(4)-0.24%
Min Revenue beat(4)-2.43%
Max Revenue beat(4)2.27%
Revenue beat(8)4
Avg Revenue beat(8)-0.46%
Revenue beat(12)7
Avg Revenue beat(12)-0.09%
Revenue beat(16)10
Avg Revenue beat(16)-0.02%
PT rev (1m)-9.86%
PT rev (3m)-12.27%
EPS NQ rev (1m)-1.67%
EPS NQ rev (3m)-16.85%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)-7.89%
Revenue NQ rev (1m)-1.68%
Revenue NQ rev (3m)-6.74%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-4.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.24 | ||
| Fwd PE | 2.17 | ||
| P/S | 0.36 | ||
| P/FCF | 3.87 | ||
| P/OCF | 2.42 | ||
| P/B | 4.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.14 |
EPS(TTM)3.91
EY44.69%
EPS(NY)4.03
Fwd EY46.1%
FCF(TTM)2.26
FCFY25.85%
OCF(TTM)3.61
OCFY41.28%
SpS24.63
BVpS1.82
TBVpS-21.63
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.59% | ||
| ROE | 183.05% | ||
| ROCE | 14.11% | ||
| ROIC | 11.15% | ||
| ROICexc | 11.92% | ||
| ROICexgc | 32.02% | ||
| OM | 22.88% | ||
| PM (TTM) | 13.49% | ||
| GM | 58.02% | ||
| FCFM | 9.18% |
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 Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.77 | ||
| Debt/FCF | 15.1 | ||
| Debt/EBITDA | 5.09 | ||
| Cap/Depr | 126.72% | ||
| Cap/Sales | 5.48% | ||
| Interest Coverage | 3.01 | ||
| Cash Conversion | 53.9% | ||
| Profit Quality | 68.06% | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 1.23 |
F-Score5
WACC6.91%
ROIC/WACC1.61
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)-8.64%
EPS 3Y-13.45%
EPS 5Y-23.48%
EPS Q2Q%-16.39%
EPS Next Y-7.36%
EPS Next 2Y-0.93%
EPS Next 3Y0.17%
EPS Next 5Y1.57%
Revenue 1Y (TTM)2.24%
Revenue growth 3Y0.52%
Revenue growth 5Y-3.81%
Sales Q2Q%-6.72%
Revenue Next Year-2.86%
Revenue Next 2Y-0.99%
Revenue Next 3Y-0.35%
Revenue Next 5Y0.71%
EBIT growth 1Y11.66%
EBIT growth 3Y-7.99%
EBIT growth 5Y-17.56%
EBIT Next Year10.09%
EBIT Next 3Y4.76%
EBIT Next 5Y5.67%
FCF growth 1Y9.29%
FCF growth 3Y-35.21%
FCF growth 5Y-26.14%
OCF growth 1Y17.52%
OCF growth 3Y-27.44%
OCF growth 5Y-19.44%