Organogenesis Holdings (NasdaqCM:ORGO) - Share price, News & Analysis

ORGO fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	4/6
Financial Health	6/6
Dividends	0/6

ORGO Stock Overview

Rewards

Trading at 93.8% below our estimate of its fair value

Earnings are forecast to grow 10.08% per year

Earnings have grown 69.9% per year over the past 5 years

Risk Analysis

High level of non-cash earnings

Significant insider selling over the past 3 months

Organogenesis Holdings Competitors

Vericel

NasdaqCM:VCEL

US$1.3b

MiMedx Group

NasdaqCM:MDXG

US$390.3m

CollPlant Biotechnologies

NasdaqGM:CLGN

US$103.3m

Nuo Therapeutics

OTCPK:AURX

US$25.1m

Price History & Performance

Summary of all time highs, changes and price drops for Organogenesis Holdings
Historical stock prices
Current Share Price	US$5.72
52 Week High	US$19.75
52 Week Low	US$5.30
Beta	1.59
1 Month Change	-17.22%
3 Month Change	-20.33%
1 Year Change	-65.60%
3 Year Change	-17.58%
5 Year Change	n/a
Change since IPO	-57.44%

Recent News & Updates

May 18

Organogenesis Holdings: What Now

Today, we revisit advance wound care name Organogenesis Holdings for the first time since late in 2020. This small cap healthcare concern is already profitable and continues to build out its product portfolio. A full investment analysis follows in the paragraphs below.

Shareholder Returns

	ORGO	US Biotechs	US Market
7D	4.8%	0.4%	1.0%
1Y	-65.6%	-22.1%	-15.1%

Return vs Industry: ORGO underperformed the US Biotechs industry which returned -22.1% over the past year.

Return vs Market: ORGO underperformed the US Market which returned -13.2% over the past year.

Price Volatility

Is ORGO's price volatile compared to industry and market?
ORGO volatility
ORGO Average Weekly Movement	11.7%
Biotechs Industry Average Movement	12.4%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: ORGO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: ORGO's weekly volatility (12%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1985	950	Gary Gillheeney	https://organogenesis.com

Organogenesis Holdings Inc., a regenerative medicine company develops, manufactures, and commercializes solutions for the advanced wound care, and surgical and sports medicine markets in the United States. The company’s advanced wound care products include Affinity, an amniotic membrane wound covering in which viable cells growth factors/cytokines, and ECM proteins in the native tissue are preserved; Apligraf, a bioengineered living cell therapy that produce spectrum of cytokines and growth factors; Dermagraft, a bioengineered product that produces human collagen, ECM, proteins, and cytokines; NuShield, a wound covering tissue includes both amnion and chorion membranes for spongy/intermediate layer intact; PuraPly , a antimicrobial barrier that enables conformability and fluid drainage; and Novachor, an amniotic membrane wound covering in which viable cells, growth factors/cytokines, and ECM proteins are preserved. Its surgical and sports medicine products comprise NuCel, a dehydrated placental tissue surgically applied to the target tissue to support native healing; ReNu, a cryopreserved suspension used to support healing of soft tissues; and FiberOS and OCMP used as a bone void filler primarily in orthopedic and neurosurgical applications.

Organogenesis Holdings Fundamentals Summary

How do Organogenesis Holdings's earnings and revenue compare to its market cap?
ORGO fundamental statistics
Market Cap	US$738.62m
Earnings (TTM)	US$85.05m
Revenue (TTM)	US$463.62m

8.7x

P/E Ratio

1.6x

P/S Ratio

Is ORGO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ORGO income statement (TTM)
Revenue	US$463.62m
Cost of Revenue	US$113.78m
Gross Profit	US$349.84m
Other Expenses	US$264.79m
Earnings	US$85.05m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.66
Gross Margin	75.46%
Net Profit Margin	18.34%
Debt/Equity Ratio	30.0%

How did ORGO perform over the long term?

See historical performance and comparison

Valuation

Is Organogenesis Holdings undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ORGO ($5.72) is trading below our estimate of fair value ($92.45)

Significantly Below Fair Value: ORGO is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: ORGO is good value based on its Price-To-Earnings Ratio (8.7x) compared to the US Biotechs industry average (15.7x).

PE vs Market: ORGO is good value based on its Price-To-Earnings Ratio (8.7x) compared to the US market (14.9x).

Price to Earnings Growth Ratio

PEG Ratio: ORGO is good value based on its PEG Ratio (0.9x)

Price to Book Ratio

PB vs Industry: ORGO is overvalued based on its Price-To-Book Ratio (3x) compared to the US Biotechs industry average (1.4x).

Future Growth

How is Organogenesis Holdings forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

10.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ORGO's forecast earnings growth (10.1% per year) is above the savings rate (1.9%).

Earnings vs Market: ORGO's earnings (10.1% per year) are forecast to grow slower than the US market (12.1% per year).

High Growth Earnings: ORGO's earnings are forecast to grow, but not significantly.

Revenue vs Market: ORGO's revenue (9.8% per year) is forecast to grow faster than the US market (7.7% per year).

High Growth Revenue: ORGO's revenue (9.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if ORGO's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Organogenesis Holdings performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

69.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ORGO has a high level of non-cash earnings.

Growing Profit Margin: ORGO's current net profit margins (18.3%) are higher than last year (11.5%).

Past Earnings Growth Analysis

Earnings Trend: ORGO has become profitable over the past 5 years, growing earnings by 69.9% per year.

Accelerating Growth: ORGO's earnings growth over the past year (95.6%) exceeds its 5-year average (69.9% per year).

Earnings vs Industry: ORGO earnings growth over the past year (95.6%) underperformed the Biotechs industry 96.9%.

Return on Equity

High ROE: ORGO's Return on Equity (35%) is considered high.

Financial Health

How is Organogenesis Holdings's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ORGO's short term assets ($217.9M) exceed its short term liabilities ($76.8M).

Long Term Liabilities: ORGO's short term assets ($217.9M) exceed its long term liabilities ($116.3M).

Debt to Equity History and Analysis

Debt Level: ORGO has more cash than its total debt.

Reducing Debt: ORGO had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: ORGO's debt is well covered by operating cash flow (88.6%).

Interest Coverage: ORGO's interest payments on its debt are well covered by EBIT (11.4x coverage).

Balance Sheet

Dividend

What is Organogenesis Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate ORGO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ORGO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ORGO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ORGO's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ORGO has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.7yrs

Average management tenure

CEO

Gary Gillheeney (66 yo)

8.33yrs

Tenure

US$4,430,757

Compensation

Mr. Gary S. Gillheeney, Sr. has been the Chief Executive Officer and President of Organogenesis Holdings Inc. since 2014 and has been its Director since December 10, 2018. Mr. Gillheeney served as Organoge...

CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD4.43M) is about average for companies of similar size in the US market ($USD3.95M).

Compensation vs Earnings: Gary's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: ORGO's management team is considered experienced (4.7 years average tenure).

Board Members

Experienced Board: ORGO's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: ORGO insiders have sold more shares than they have bought in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31