ORGANON & CO (OGN)
US68622V1061 - Common Stock
Taking everything into account, OGN scores 5 out of 10 in our fundamental rating. OGN was compared to 198 industry peers in the Pharmaceuticals industry. OGN has an excellent profitability rating, but there are concerns on its financial health. OGN has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year OGN was profitable.
OGN had a positive operating cash flow in the past year.
In the past 5 years OGN has always been profitable.
OGN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of OGN (8.48%) is better than 92.82% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.73%, OGN belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for OGN is in line with the industry average of 16.40%.
The 3 year average ROIC (15.86%) for OGN is well above the current ROIC(11.73%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.48% | ||
| ROE | N/A | ||
| ROIC | 11.73% |
ROA(3y)9.83%
ROA(5y)16.28%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)15.86%
ROIC(5y)21.67%
1.3 Margins
OGN's Profit Margin of 16.33% is amongst the best of the industry. OGN outperforms 92.31% of its industry peers.
OGN's Profit Margin has declined in the last couple of years.
OGN's Operating Margin of 20.95% is amongst the best of the industry. OGN outperforms 88.72% of its industry peers.
In the last couple of years the Operating Margin of OGN has declined.
OGN has a better Gross Margin (59.84%) than 66.15% of its industry peers.
OGN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.95% | ||
| PM (TTM) | 16.33% | ||
| GM | 59.84% |
OM growth 3Y-21.75%
OM growth 5Y-6.67%
PM growth 3Y-20.95%
PM growth 5Y-5.8%
GM growth 3Y-3.96%
GM growth 5Y2.85%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), OGN is creating value.
Compared to 1 year ago, OGN has more shares outstanding
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
Based on the Altman-Z score of 1.33, we must say that OGN is in the distress zone and has some risk of bankruptcy.
OGN has a Altman-Z score of 1.33. This is in the better half of the industry: OGN outperforms 62.05% of its industry peers.
The Debt to FCF ratio of OGN is 16.22, which is on the high side as it means it would take OGN, 16.22 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 16.22, OGN is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 16.22 | ||
| Altman-Z | 1.33 |
ROIC/WACC1.41
WACC8.32%
2.3 Liquidity
A Current Ratio of 1.54 indicates that OGN should not have too much problems paying its short term obligations.
OGN's Current ratio of 1.54 is on the low side compared to the rest of the industry. OGN is outperformed by 74.87% of its industry peers.
OGN has a Quick Ratio of 1.09. This is a normal value and indicates that OGN is financially healthy and should not expect problems in meeting its short term obligations.
OGN has a Quick ratio of 1.09. This is in the lower half of the industry: OGN underperforms 77.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
OGN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.69%.
OGN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.05% yearly.
Looking at the last year, OGN shows a small growth in Revenue. The Revenue has grown by 1.44% in the last year.
Measured over the past years, OGN shows a decrease in Revenue. The Revenue has been decreasing by -8.52% on average per year.
EPS 1Y (TTM)-17.69%
EPS 3Y-22.36%
EPS 5Y-14.05%
EPS growth Q2Q8.64%
Revenue 1Y (TTM)1.44%
Revenue growth 3Y-1.39%
Revenue growth 5Y-8.52%
Revenue growth Q2Q7.61%
3.2 Future
OGN is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.50% yearly.
OGN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.77% yearly.
EPS Next Y5.46%
EPS Next 2Y4.85%
EPS Next 3Y3.63%
EPS Next 5Y-1.5%
Revenue Next Year3.01%
Revenue Next 2Y2.42%
Revenue Next 3Y2.08%
Revenue Next 5Y1.77%
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.
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
With a Price/Earnings ratio of 4.55, the valuation of OGN can be described as very cheap.
OGN's Price/Earnings ratio is rather cheap when compared to the industry. OGN is cheaper than 97.44% 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 24.55.
The Price/Forward Earnings ratio is 4.31, which indicates a rather cheap valuation of OGN.
Based on the Price/Forward Earnings ratio, OGN is valued cheaper than 98.97% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.92, OGN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.55 | ||
| Fwd PE | 4.31 |
4.2 Price Multiples
OGN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OGN is cheaper than 90.77% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, OGN is valued cheaper than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.91 | ||
| EV/EBITDA | 8.32 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
OGN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.83
PEG (5Y)N/A
EPS Next 2Y4.85%
EPS Next 3Y3.63%
5. Dividend
5.1 Amount
OGN has a Yearly Dividend Yield of 6.08%, which is a nice return.
Compared to an average industry Dividend Yield of 4.39, OGN pays a better dividend. On top of this OGN pays more dividend than 97.95% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, OGN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.08% |
5.2 History
OGN has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
28.74% of the earnings are spent on dividend by OGN. This is a low number and sustainable payout ratio.
DP28.74%
EPS Next 2Y4.85%
EPS Next 3Y3.63%
ORGANON & CO
NYSE:OGN (5/1/2024, 7:14:11 PM)
After market: 18.7999 -0.03 (-0.16%)18.83
+0.22 (+1.18%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.81B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.08% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.55 | ||
| Fwd PE | 4.31 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.83
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.48% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.95% | ||
| PM (TTM) | 16.33% | ||
| GM | 59.84% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-17.69%
EPS 3Y-22.36%
EPS 5Y
EPS growth Q2Q
EPS Next Y5.46%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.44%
Revenue growth 3Y-1.39%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y