ORGANON & CO (OGN) Stock Fundamental Analysis
NYSE:OGN - US68622V1061 - Common Stock
9.43 USD
+0.15 (+1.62%)
9.43 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to OGN. OGN was compared to 193 industry peers in the Pharmaceuticals industry. While OGN has a great profitability rating, there are quite some concerns on its financial health. OGN is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year OGN was profitable.
OGN had a positive operating cash flow in the past year.
OGN had positive earnings in each of the past 5 years.
Each year in the past 5 years OGN had a positive operating cash flow.
1.2 Ratios
OGN's Return On Assets of 5.19% is amongst the best of the industry. OGN outperforms 88.08% of its industry peers.
The Return On Equity of OGN (95.50%) is better than 99.48% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.03%, OGN belongs to the top of the industry, outperforming 86.01% 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 15.57%.
| 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's Profit Margin of 11.14% is amongst the best of the industry. OGN outperforms 88.08% 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 88.60% of its industry peers.
In the last couple of years the Operating Margin of OGN has declined.
Looking at the Gross Margin, with a value of 56.26%, OGN is in the better half of the industry, outperforming 66.84% of the companies in the same industry.
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
OGN has a better debt/assets ratio than last year.
2.2 Solvency
OGN has an Altman-Z score of 1.19. 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 of 1.19. This is in the better half of the industry: OGN outperforms 60.10% of 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.
OGN has a Debt to FCF ratio of 18.46. This is in the better half of the industry: OGN outperforms 76.17% of its industry peers.
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 83.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.98 | ||
| Debt/FCF | 18.46 | ||
| Altman-Z | 1.19 |
ROIC/WACC1.46
WACC6.86%
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.
With a Current ratio value of 1.65, OGN is not doing good in the industry: 65.28% of the companies in the same industry are doing better.
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.
OGN has a Quick ratio of 1.13. This is in the lower half of the industry: OGN underperforms 71.50% of its industry peers.
| 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.
The earnings per share for OGN have been decreasing by -23.48% on average. This is quite bad
The Revenue has decreased by -1.02% in the past year.
Measured over the past years, OGN shows a decrease in Revenue. The Revenue has been decreasing by -3.81% on average per year.
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 2.03% 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 0.26% yearly.
EPS Next Y-5.1%
EPS Next 2Y0.17%
EPS Next 3Y1.93%
EPS Next 5Y2.03%
Revenue Next Year-2.94%
Revenue Next 2Y-0.98%
Revenue Next 3Y-0.26%
Revenue Next 5Y0.26%
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 2.49.
Based on the Price/Earnings ratio, OGN is valued cheaply inside the industry as 97.93% of the companies are valued more expensively.
OGN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.24.
Based on the Price/Forward Earnings ratio of 2.29, the valuation of OGN can be described as very cheap.
Based on the Price/Forward Earnings ratio, OGN is valued cheaper than 98.45% 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 35.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.49 | ||
| Fwd PE | 2.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OGN is valued cheaper than 94.30% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, OGN is valued cheaper than 96.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.09 | ||
| EV/EBITDA | 6.38 |
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 2Y0.17%
EPS Next 3Y1.93%
5. Dividend
5.1 Amount
With a yearly dividend of 0.86%, OGN is not a good candidate for dividend investing.
OGN's Dividend Yield is rather good when compared to the industry average which is at 4.04. OGN pays more dividend than 89.64% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, OGN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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 2Y0.17%
EPS Next 3Y1.93%
9.43
+0.15 (+1.62%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners80.31%
Inst Owner Change4.33%
Ins Owners0.35%
Ins Owner Change37.3%
Market Cap2.45B
Analysts52
Price Target13.06 (38.49%)
Short Float %5.79%
Short Ratio3.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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)-5.8%
PT rev (3m)-26.14%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)1.17%
EPS NY rev (1m)0%
EPS NY rev (3m)1.3%
Revenue NQ rev (1m)0.51%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.49 | ||
| Fwd PE | 2.29 | ||
| P/S | 0.39 | ||
| P/FCF | 5.09 | ||
| P/OCF | 2.97 | ||
| P/B | 3.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.38 |
EPS(TTM)3.79
EY40.19%
EPS(NY)4.12
Fwd EY43.73%
FCF(TTM)1.85
FCFY19.66%
OCF(TTM)3.18
OCFY33.69%
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 | 1.19 |
F-Score5
WACC6.86%
ROIC/WACC1.46
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-5.1%
EPS Next 2Y0.17%
EPS Next 3Y1.93%
EPS Next 5Y2.03%
Revenue 1Y (TTM)-1.02%
Revenue growth 3Y0.52%
Revenue growth 5Y-3.81%
Sales Q2Q%-0.81%
Revenue Next Year-2.94%
Revenue Next 2Y-0.98%
Revenue Next 3Y-0.26%
Revenue Next 5Y0.26%
EBIT growth 1Y2.41%
EBIT growth 3Y-7.99%
EBIT growth 5Y-17.56%
EBIT Next Year9.71%
EBIT Next 3Y5.56%
EBIT Next 5Y5.9%
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%