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 195 industry peers in the Pharmaceuticals industry. OGN scores excellent on profitability, but there are 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.
In the past year OGN had a positive cash flow from operations.
OGN had positive earnings in each of the past 5 years.
OGN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 5.70%, OGN belongs to the best of the industry, outperforming 89.23% of the companies in the same industry.
OGN has a Return On Equity of 138.38%. This is amongst the best in the industry. OGN outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.33%, OGN belongs to the top of the industry, outperforming 88.21% 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 14.87%.
| 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
The Profit Margin of OGN (11.92%) is better than 88.72% of its industry peers.
In the last couple of years the Profit Margin of OGN has declined.
With an excellent Operating Margin value of 21.89%, OGN belongs to the best of the industry, outperforming 88.72% 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 (57.18%) than 66.67% of its industry peers.
OGN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.89% | ||
| 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
OGN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, OGN has more shares outstanding
OGN has more shares outstanding than it did 5 years ago.
OGN has a better debt/assets ratio than last year.
2.2 Solvency
OGN has an Altman-Z score of 1.22. This is a bad value and indicates that OGN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of OGN (1.22) is better than 61.03% of its industry peers.
The Debt to FCF ratio of OGN is 15.28, which is on the high side as it means it would take OGN, 15.28 years of fcf income to pay off 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 79.49% 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.
OGN has a worse Debt to Equity ratio (16.49) than 84.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 16.49 | ||
| Debt/FCF | 15.28 | ||
| Altman-Z | 1.22 |
ROIC/WACC1.48
WACC7%
2.3 Liquidity
A Current Ratio of 1.67 indicates that OGN should not have too much problems paying its short term obligations.
The Current ratio of OGN (1.67) is worse than 67.18% 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.
OGN's Quick ratio of 1.15 is on the low side compared to the rest of the industry. OGN is outperformed by 71.79% of its industry peers.
| 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.
The earnings per share for OGN have been decreasing by -23.48% on average. This is quite bad
OGN shows a decrease in Revenue. In the last year, the revenue decreased by -0.84%.
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)-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.
The Revenue is expected to grow by 1.05% on average over the next years.
EPS Next Y-5.1%
EPS Next 2Y0.17%
EPS Next 3Y1.93%
EPS Next 5Y1.57%
Revenue Next Year-2.89%
Revenue Next 2Y-0.91%
Revenue Next 3Y-0.21%
Revenue Next 5Y1.05%
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
OGN is valuated cheaply with a Price/Earnings ratio of 2.54.
OGN's Price/Earnings ratio is rather cheap when compared to the industry. OGN is cheaper than 98.46% 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 27.30.
The Price/Forward Earnings ratio is 2.41, which indicates a rather cheap valuation of OGN.
Based on the Price/Forward Earnings ratio, OGN is valued cheaply inside the industry as 97.44% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of OGN to the average of the S&P500 Index (21.76), we can say OGN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.54 | ||
| Fwd PE | 2.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OGN is valued cheaply inside the industry as 92.82% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, OGN is valued cheaply inside the industry as 98.46% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.41 | ||
| EV/EBITDA | 6.58 |
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 0.80%, 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 4.05. OGN pays more dividend than 90.26% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, OGN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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 39.73% of its income as dividend. This is a sustainable payout ratio.
DP39.73%
EPS Next 2Y0.17%
EPS Next 3Y1.93%
9.94
-0.08 (-0.8%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners81.12%
Inst Owner Change0.01%
Ins Owners0.35%
Ins Owner Change36.82%
Market Cap2.58B
Analysts52
Price Target14.08 (41.65%)
Short Float %6.16%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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)-21.59%
PT rev (3m)-32.13%
EPS NQ rev (1m)0.92%
EPS NQ rev (3m)3.05%
EPS NY rev (1m)1.3%
EPS NY rev (3m)2.03%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.54 | ||
| Fwd PE | 2.41 | ||
| P/S | 0.41 | ||
| P/FCF | 4.41 | ||
| P/OCF | 2.75 | ||
| P/B | 4.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.58 |
EPS(TTM)3.91
EY39.34%
EPS(NY)4.12
Fwd EY41.49%
FCF(TTM)2.25
FCFY22.68%
OCF(TTM)3.61
OCFY36.3%
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 | 1.22 |
F-Score5
WACC7%
ROIC/WACC1.48
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-5.1%
EPS Next 2Y0.17%
EPS Next 3Y1.93%
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-2.89%
Revenue Next 2Y-0.91%
Revenue Next 3Y-0.21%
Revenue Next 5Y1.05%
EBIT growth 1Y3.22%
EBIT growth 3Y-7.99%
EBIT growth 5Y-17.56%
EBIT Next Year8.43%
EBIT Next 3Y5.01%
EBIT Next 5Y4.83%
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%