ORGANON & CO (OGN) Stock Fundamental Analysis
USA - NYSE:OGN - US68622V1061 - Common Stock
6.75 USD
+0.18 (+2.74%)
6.84 USD
+0.09 (+1.33%)
OGN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 192 industry peers in the Pharmaceuticals industry. OGN has an excellent profitability rating, 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.
In the past 5 years OGN has always been profitable.
In the past 5 years OGN always reported a positive cash flow from operatings.
1.2 Ratios
OGN has a Return On Assets of 5.19%. This is amongst the best in the industry. OGN outperforms 88.02% of its industry peers.
Looking at the Return On Equity, with a value of 95.50%, OGN belongs to the top of the industry, outperforming 99.48% of the companies in the same industry.
OGN's Return On Invested Capital of 10.03% is amongst the best of the industry. OGN outperforms 86.98% of its industry peers.
OGN had an Average Return On Invested Capital over the past 3 years of 12.92%. This is below the industry average of 15.41%.
| 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 better Profit Margin (11.14%) than 86.98% of its industry peers.
In the last couple of years the Profit Margin of OGN has declined.
With an excellent Operating Margin value of 21.64%, OGN belongs to the best of the industry, outperforming 89.06% of the companies in the same industry.
OGN's Operating Margin has declined in the last couple of years.
OGN has a better Gross Margin (56.26%) than 66.67% of its industry peers.
OGN's Gross Margin has declined in the last couple of years.
| 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.
OGN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for OGN has been increased compared to 5 years ago.
The debt/assets ratio for OGN has been reduced compared to a year ago.
2.2 Solvency
OGN has an Altman-Z score of 1.16. This is a bad value and indicates that OGN is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.16, OGN perfoms like the industry average, outperforming 58.85% 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.
OGN's Debt to FCF ratio of 18.46 is fine compared to the rest of the industry. OGN outperforms 76.56% 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.
With a Debt to Equity ratio value of 11.98, OGN is not doing good in the industry: 81.77% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.98 | ||
| Debt/FCF | 18.46 | ||
| Altman-Z | 1.16 |
ROIC/WACC1.61
WACC6.24%
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 65.63% of the companies in the same industry.
A Quick Ratio of 1.13 indicates that OGN should not have too much problems paying its short term obligations.
OGN has a worse Quick ratio (1.13) than 71.88% 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
Looking at the last year, OGN shows a decrease in Revenue. The Revenue has decreased by -1.02% in the last year.
OGN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.81% yearly.
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.
Based on estimates for the next years, OGN will show a small growth in Revenue. The Revenue will grow by 0.38% on average per year.
EPS Next Y-5.43%
EPS Next 2Y-0.35%
EPS Next 3Y0.88%
EPS Next 5Y0.39%
Revenue Next Year-1.85%
Revenue Next 2Y-0.61%
Revenue Next 3Y-0.07%
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 1.78 indicates a rather cheap valuation of OGN.
Compared to the rest of the industry, the Price/Earnings ratio of OGN indicates a rather cheap valuation: OGN is cheaper than 98.44% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.10, OGN is valued rather cheaply.
With a Price/Forward Earnings ratio of 1.65, the valuation of OGN can be described as very cheap.
99.48% of the companies in the same industry are more expensive than OGN, based on the Price/Forward Earnings ratio.
OGN is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.78 | ||
| Fwd PE | 1.65 |
4.2 Price Multiples
95.83% of the companies in the same industry are more expensive than OGN, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OGN indicates a rather cheap valuation: OGN is cheaper than 98.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.64 | ||
| EV/EBITDA | 5.96 |
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-0.35%
EPS Next 3Y0.88%
5. Dividend
5.1 Amount
OGN has a Yearly Dividend Yield of 1.22%. Purely for dividend investing, there may be better candidates out there.
The stock price of OGN dropped by -30.77% 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 6.52, OGN pays a better dividend. On top of this OGN pays more dividend than 91.15% of the companies listed in the same industry.
With a Dividend Yield of 1.22, OGN pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
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-0.35%
EPS Next 3Y0.88%
6.75
+0.18 (+2.74%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners84.79%
Inst Owner Change-0.27%
Ins Owners0.35%
Ins Owner Change8.46%
Market Cap1.75B
Revenue(TTM)6.28B
Net Income(TTM)700.00M
Analysts50.67
Price Target11.05 (63.7%)
Short Float %4.69%
Short Ratio3.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
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)-1.54%
EPS NQ rev (1m)0.52%
EPS NQ rev (3m)-0.37%
EPS NY rev (1m)0.53%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)0.51%
Revenue NQ rev (3m)1.4%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.78 | ||
| Fwd PE | 1.65 | ||
| P/S | 0.28 | ||
| P/FCF | 3.64 | ||
| P/OCF | 2.12 | ||
| P/B | 2.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.96 |
EPS(TTM)3.79
EY56.15%
EPS(NY)4.08
Fwd EY60.46%
FCF(TTM)1.85
FCFY27.47%
OCF(TTM)3.18
OCFY47.07%
SpS24.16
BVpS2.82
TBVpS-20.42
PEG (NY)N/A
PEG (5Y)N/A
Graham Number15.51
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%
ROICexgc growth 3Y-23.31%
ROICexgc 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 | 1.16 |
F-Score5
WACC6.24%
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)-7.33%
EPS 3Y-13.45%
EPS 5Y-23.48%
EPS Q2Q%-10.71%
EPS Next Y-5.43%
EPS Next 2Y-0.35%
EPS Next 3Y0.88%
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-0.61%
Revenue Next 3Y-0.07%
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%
ORGANON & CO / OGN FAQ
What is the fundamental rating for OGN stock?
ChartMill assigns a fundamental rating of 5 / 10 to OGN.
Can you provide the valuation status for ORGANON & CO?
ChartMill assigns a valuation rating of 8 / 10 to ORGANON & CO (OGN). This can be considered as Undervalued.
What is the profitability of OGN stock?
ORGANON & CO (OGN) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for OGN stock?
The Earnings per Share (EPS) of ORGANON & CO (OGN) is expected to decline by -5.43% in the next year.
Can you provide the dividend sustainability for OGN stock?
The dividend rating of ORGANON & CO (OGN) is 4 / 10 and the dividend payout ratio is 32.71%.