ORGANON & CO (OGN) Stock Fundamental Analysis
NYSE:OGN - New York Stock Exchange, Inc. - US68622V1061 - Common Stock - Currency: USD
Taking everything into account, OGN scores 5 out of 10 in our fundamental rating. OGN was compared to 197 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.
In the past 5 years OGN has always been profitable.
Each year in the past 5 years OGN had a positive operating cash flow.
1.2 Ratios
OGN has a better Return On Assets (5.70%) than 88.89% of its industry peers.
OGN's Return On Equity of 138.38% is amongst the best of the industry. OGN outperforms 99.49% of its industry peers.
With an excellent Return On Invested Capital value of 10.33%, OGN belongs to the best of the industry, outperforming 87.37% of the companies in the same industry.
OGN had an Average Return On Invested Capital over the past 3 years of 12.92%. This is significantly below the industry average of 42.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.7% | ||
| ROE | 138.38% | ||
| ROIC | 10.33% |
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
Looking at the Profit Margin, with a value of 11.92%, OGN belongs to the top of the industry, outperforming 88.38% of the companies in the same industry.
OGN's Profit Margin has declined in the last couple of years.
OGN has a better Operating Margin (21.89%) than 87.88% of its industry peers.
OGN's Operating Margin has declined in the last couple of years.
OGN has a better Gross Margin (57.18%) than 66.67% of its industry peers.
In the last couple of years the Gross Margin of OGN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.89% | ||
| PM (TTM) | 11.92% | ||
| GM | 57.18% |
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
OGN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, OGN has an improved debt to assets ratio.
2.2 Solvency
OGN has an Altman-Z score of 1.20. This is a bad value and indicates that OGN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.20, OGN is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
OGN has a debt to FCF ratio of 15.28. This is a negative value and a sign of low solvency as OGN would need 15.28 years to pay back of all of its debts.
OGN has a Debt to FCF ratio of 15.28. This is in the better half of the industry: OGN outperforms 78.79% of its industry peers.
OGN has a Debt/Equity ratio of 16.49. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of OGN (16.49) is worse than 82.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 16.49 | ||
| Debt/FCF | 15.28 | ||
| Altman-Z | 1.2 |
ROIC/WACC1.53
WACC6.76%
2.3 Liquidity
A Current Ratio of 1.67 indicates that OGN should not have too much problems paying its short term obligations.
OGN has a Current ratio of 1.67. This is in the lower half of the industry: OGN underperforms 64.65% of its industry peers.
OGN has a Quick Ratio of 1.15. 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 Quick ratio, with a value of 1.15, OGN is doing worse than 70.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.15 |
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.
Looking at the last year, OGN shows a decrease in Revenue. The Revenue has decreased by -0.84% in the last year.
The Revenue has been decreasing by -3.81% on average over the past years.
EPS 1Y (TTM)-8.64%
EPS 3Y-13.45%
EPS 5Y-23.48%
EPS Q2Q%-16.39%
Revenue 1Y (TTM)-0.84%
Revenue growth 3Y0.52%
Revenue growth 5Y-3.81%
Sales Q2Q%-6.72%
3.2 Future
OGN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.57% yearly.
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-6.32%
EPS Next 2Y-0.3%
EPS Next 3Y0.68%
EPS Next 5Y1.57%
Revenue Next Year-2.86%
Revenue Next 2Y-0.95%
Revenue Next 3Y-0.46%
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
The Price/Earnings ratio is 2.22, which indicates a rather cheap valuation of OGN.
OGN's Price/Earnings ratio is rather cheap when compared to the industry. OGN is cheaper than 97.98% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.91. OGN is valued rather cheaply when compared to this.
OGN is valuated cheaply with a Price/Forward Earnings ratio of 2.13.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OGN indicates a rather cheap valuation: OGN is cheaper than 97.98% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.77, OGN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.22 | ||
| Fwd PE | 2.13 |
4.2 Price Multiples
OGN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OGN is cheaper than 91.92% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OGN indicates a rather cheap valuation: OGN is cheaper than 98.99% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.86 | ||
| EV/EBITDA | 6.37 |
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-0.3%
EPS Next 3Y0.68%
5. Dividend
5.1 Amount
OGN has a yearly dividend return of 0.95%, which is pretty low.
The stock price of OGN dropped by -43.90% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 4.20, OGN pays a better dividend. On top of this OGN pays more dividend than 90.40% of the companies listed in the same industry.
With a Dividend Yield of 0.95, OGN pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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
39.73% of the earnings are spent on dividend by OGN. This is a low number and sustainable payout ratio.
DP39.73%
EPS Next 2Y-0.3%
EPS Next 3Y0.68%
8.69
0 (0%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners84.68%
Inst Owner Change-1.5%
Ins Owners0.21%
Ins Owner Change36.82%
Market Cap2.26B
Analysts52
Price Target17.95 (106.56%)
Short Float %7.6%
Short Ratio3.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend1.16
Dividend Growth(5Y)N/A
DP39.73%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.63%
Min EPS beat(2)2.83%
Max EPS beat(2)12.44%
EPS beat(4)3
Avg EPS beat(4)3.43%
Min EPS beat(4)-4.65%
Max EPS beat(4)12.44%
EPS beat(8)6
Avg EPS beat(8)6.69%
EPS beat(12)8
Avg EPS beat(12)5.12%
EPS beat(16)12
Avg EPS beat(16)8.3%
Revenue beat(2)0
Avg Revenue beat(2)-0.89%
Min Revenue beat(2)-1.12%
Max Revenue beat(2)-0.66%
Revenue beat(4)1
Avg Revenue beat(4)-0.97%
Min Revenue beat(4)-2.43%
Max Revenue beat(4)0.32%
Revenue beat(8)4
Avg Revenue beat(8)-0.36%
Revenue beat(12)6
Avg Revenue beat(12)-0.32%
Revenue beat(16)10
Avg Revenue beat(16)0.15%
PT rev (1m)-13.44%
PT rev (3m)-15.62%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)-11.42%
EPS NY rev (1m)1.11%
EPS NY rev (3m)-2.08%
Revenue NQ rev (1m)0.45%
Revenue NQ rev (3m)-3.98%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.22 | ||
| Fwd PE | 2.13 | ||
| P/S | 0.36 | ||
| P/FCF | 3.86 | ||
| P/OCF | 2.41 | ||
| P/B | 4.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.37 |
EPS(TTM)3.91
EY44.99%
EPS(NY)4.09
Fwd EY47.01%
FCF(TTM)2.25
FCFY25.94%
OCF(TTM)3.61
OCFY41.52%
SpS24.21
BVpS2.08
TBVpS-21.37
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.7% | ||
| ROE | 138.38% | ||
| ROCE | 13.07% | ||
| ROIC | 10.33% | ||
| ROICexc | 10.89% | ||
| ROICexgc | 27.93% | ||
| OM | 21.89% | ||
| PM (TTM) | 11.92% | ||
| GM | 57.18% | ||
| FCFM | 9.31% |
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 Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 16.49 | ||
| Debt/FCF | 15.28 | ||
| Debt/EBITDA | 5.34 | ||
| Cap/Depr | 118.92% | ||
| Cap/Sales | 5.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 56.03% | ||
| Profit Quality | 78.13% | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 1.2 |
F-Score5
WACC6.76%
ROIC/WACC1.53
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-6.32%
EPS Next 2Y-0.3%
EPS Next 3Y0.68%
EPS Next 5Y1.57%
Revenue 1Y (TTM)-0.84%
Revenue growth 3Y0.52%
Revenue growth 5Y-3.81%
Sales Q2Q%-6.72%
Revenue Next Year-2.86%
Revenue Next 2Y-0.95%
Revenue Next 3Y-0.46%
Revenue Next 5Y0.71%
EBIT growth 1Y3.22%
EBIT growth 3Y-7.99%
EBIT growth 5Y-17.56%
EBIT Next Year8.43%
EBIT Next 3Y5.01%
EBIT Next 5Y5.67%
FCF growth 1Y11.62%
FCF growth 3Y-35.21%
FCF growth 5Y-26.14%
OCF growth 1Y10.48%
OCF growth 3Y-27.44%
OCF growth 5Y-19.44%