OGN Stock Overview
Organon & Co., a health care company, develops and delivers health solutions through a portfolio of prescription therapies in the United States and internationally.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$24.51|
|52 Week High||US$39.48|
|52 Week Low||US$24.16|
|1 Month Change||-16.49%|
|3 Month Change||-27.38%|
|1 Year Change||-27.87%|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||-26.29%|
Recent News & Updates
Organon: What Is The Recipe?
Summary Organon has seen a real struggle in its first year on its own as a publicly listed business. Lack of growth was anticipated, yet the extent of margin pressure has been unexpected. With net debt flattish, leverage ratios have only increased, creating few triggers in the near-term horizon. A year ago, I concluded that there were fertile grounds for shares of Organon & Co. (OGN) in this premium article. The spinoff from Merck & Co., Inc. (MRK) has seen some volatile trading after its separation, and with shares lagging a bit, that looked rather interesting. Since shares started trading on their own early last summer, shares showed some volatility in a $28-$38 trading range in the first months after trading, and trading towards the lower end of that range at the time, I found the valuation enticing. A Recap The spinoff of Organon within Merck has been well-prepared as the spinoff procedure started early in 2020, allowing the company to operate separately under the ownership of Merck ahead of the official spinoff. Organon generated $6.6 billion in sales in 2020 from women's health, including unintended pregnancies, treatment of women with peri- and postmenopausal symptoms, uterine fibroid, etc. The business is organized out of two segments of which "established brands" is the largest segment with 49 products together being responsible for $4.5 billion in sales. The women's health business generated $1.6 billion in sales from 10 products, including some biosimilars. The business is a truly international, or better said, global cash cow. Some 80% of sales are generated abroad, as the company reports adjusted EBITDA of $2.8 billion, translating into very fat margins. While there are some exclusivity issues and concerns, the counterargument is that the line-up of products is quite broad, with real diversification seen as no individual product is responsible for more than 10% of sales. Nonetheless, not all was great as the company guided for 2021 sales to fall from $6.6 billion in 2020 to $6.1-$6.4 billion in 2021. Based on $2.8 billion in EBITDA, I pegged after-tax cash flows around $1.6 billion after deducting $200-$300 million in capital investments, $400 million in interest costs and a 25% tax rate. Such a number would work down to earnings of $6.50 per share based on roughly a quarter of a billion shares outstanding. With shares trading at $33, that worked down to just 5 times earnings, albeit that the fall in sales and leverage were the counterarguments. Leverage was a real big argument, with net debt posted at $8.6 billion at the time, actually exceeding its $8.3 billion equity valuation at the time, albeit that leverage was manageable at 3.1 times EBITDA, albeit that EBITDA was likely seen around $2.5 billion in 2021, increasing leverage ratios to 3.5 times. Weighing it all together, I thought that the value argument was prevailing as I have initiated a position, and after shares have hit a high around $40 earlier this year, shares are now back to $28 per share and change. What Happened? In November of last year, the company announced a deal to acquire Forendo Pharma in a deal valued at just $75 million upfront, albeit that regulatory and commercial achievements could drive up the value of the deal to nearly a billion. In February, full year sales were reported at $6.3 billion and while sales were down just 3%, adjusted EBITDA margins fell 10 percentage points to 38%, coming in just below $2.4 billion. This translates into adjusted earnings of $6.54 per share and GAAP earnings of $5.31 per share, with many reconciliation items looking quite fair, as net debt was quite stable at $8.4 billion. The company guided for flattish sales at $6.1-$6.4 billion in 2022, pretty flat year-over-year, yet adjusted EBITDA margins are seen around 35%, as this reveals further margin pressure and EBITDA to come in just below $2.2 billion. This results in a pre-tax earnings headwind of around $0.80 per share, but earnings should still come in around $6 per share on an adjusted basis, all while leverage ratio increases on a relative basis.
Oragenics announces early toxicology data for intranasal COVID-19 vaccine
Development-stage biotech Oragenics, Inc. (NYSE:OGN) announced initial data on Wednesday from an ongoing Good Laboratory Practice (GLP) toxicology study for NT-CoV2-1, an intranasal COVID-19 vaccine candidate. The data, generated from a rabbit model, indicate a safety profile and immune responses for NT-CoV2-1, the company said, adding that the readout is expected to support regulatory filings required to advance the candidate in a Phase 1 trial. The final toxicology report, which will include data from ongoing histopathology evaluation, is expected by the year-end. The company plans to start the Phase 1 trial for NT-CoV2-1 by early 2023. “We believe our intranasal vaccine candidate will have the potential to reduce transmission and offers a needle-free COVID-19 vaccine option,” OGN’s Chief Executive Kimberly Murphy said. A former executive at GSK (GSK), Murphy took the leadership of OGN in June.
Organon, Samsung Bioepis Humira biosimilar Hadlima high concentration dosage gets FDA nod
The U.S. Food and Drug Administration (FDA) approved a citrate-free, high-concentration (100 mg/mL) formulation of Samsung Bioepis and Organon's (NYSE:OGN) Hadlima, a biosimilar to AbbVie's (ABBV) blockbuster arthritis/psoriasis therapy Humira (adalimumab). The companies said Hadlima (adalimumab-bwwd) will be available in pre-filled syringe and autoinjector options. Hadlima was previously approved by the FDA as a low-concentration (50 mg/mL) formulation in July 2019, the companies noted in an Aug. 17 press release. Organon expects to launch Hadlima in the U.S. on or after July 1, in 2023. Novartis' too has a Humira biosimilar Hyrimoz, whose high concentration formulation of 100 mg/mL is under review by the FDA.
Organon (NYSE:OGN) Is Due To Pay A Dividend Of $0.28
The board of Organon & Co. ( NYSE:OGN ) has announced that it will pay a dividend on the 15th of September, with...
|OGN||US Pharmaceuticals||US Market|
Return vs Industry: OGN underperformed the US Pharmaceuticals industry which returned 4.2% over the past year.
Return vs Market: OGN underperformed the US Market which returned -22.1% over the past year.
|OGN Average Weekly Movement||3.2%|
|Pharmaceuticals Industry Average Movement||11.5%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.8%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: OGN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: OGN's weekly volatility (3%) has been stable over the past year.
About the Company
Organon & Co., a health care company, develops and delivers health solutions through a portfolio of prescription therapies in the United States and internationally. Its women’s health portfolio comprises contraception and fertility brands, such as Nexplanon/Implanon, a long-acting reversible contraceptive. The company’s biosimilars portfolio consists of three immunology products, such as Brenzys, Renflexis, and Hadlima, as well as two oncology products, including Ontruzant and Aybintio.
Organon Fundamentals Summary
|OGN fundamental statistics|
Is OGN overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|OGN income statement (TTM)|
|Cost of Revenue||US$2.35b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||4.35|
|Net Profit Margin||17.42%|
How did OGN perform over the long term?See historical performance and comparison
4.6%Current Dividend Yield
Is OGN undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 6/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for OGN?
Other financial metrics that can be useful for relative valuation.
|What is OGN's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does OGN's PE Ratio compare to its peers?
|OGN PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
CORT Corcept Therapeutics
BHC Bausch Health Companies
Price-To-Earnings vs Peers: OGN is good value based on its Price-To-Earnings Ratio (5.6x) compared to the peer average (32.2x).
Price to Earnings Ratio vs Industry
How does OGN's PE Ratio compare vs other companies in the US Pharmaceuticals Industry?
Price-To-Earnings vs Industry: OGN is good value based on its Price-To-Earnings Ratio (5.6x) compared to the US Pharmaceuticals industry average (12.6x)
Price to Earnings Ratio vs Fair Ratio
What is OGN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||5.6x|
|Fair PE Ratio||20.1x|
Price-To-Earnings vs Fair Ratio: OGN is good value based on its Price-To-Earnings Ratio (5.6x) compared to the estimated Fair Price-To-Earnings Ratio (20.1x).
Share Price vs Fair Value
What is the Fair Price of OGN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: OGN ($24.51) is trading below our estimate of fair value ($141.32)
Significantly Below Fair Value: OGN is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
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How is Organon forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: OGN's forecast earnings growth (4.8% per year) is above the savings rate (1.9%).
Earnings vs Market: OGN's earnings (4.8% per year) are forecast to grow slower than the US market (14.8% per year).
High Growth Earnings: OGN's earnings are forecast to grow, but not significantly.
Revenue vs Market: OGN's revenue (1.3% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: OGN's revenue (1.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: OGN's Return on Equity is forecast to be very high in 3 years time (213.7%).
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How has Organon performed over the past 5 years?
Past Performance Score1/6
Past Performance Score 1/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: OGN has high quality earnings.
Growing Profit Margin: OGN's current net profit margins (17.4%) are lower than last year (27.8%).
Past Earnings Growth Analysis
Earnings Trend: OGN's earnings have declined by 12.6% per year over the past 5 years.
Accelerating Growth: OGN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: OGN had negative earnings growth (-37.2%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (5%).
Return on Equity
High ROE: OGN's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
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How is Organon's financial position?
Financial Health Score1/6
Financial Health Score 1/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: OGN has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: OGN has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.
Debt to Equity History and Analysis
Debt Level: OGN has negative shareholder equity, which is a more serious situation than a high debt level.
Reducing Debt: OGN's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
Debt Coverage: OGN's debt is not well covered by operating cash flow (7.7%).
Interest Coverage: OGN's interest payments on its debt are well covered by EBIT (4.7x coverage).
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What is Organon current dividend yield, its reliability and sustainability?
Dividend Score 3/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
|Organon Dividend Yield vs Market|
|Market Bottom 25% (US)||1.6%|
|Market Top 25% (US)||4.6%|
|Industry Average (Pharmaceuticals)||2.5%|
|Analyst forecast in 3 Years (Organon)||4.8%|
Notable Dividend: OGN's dividend (4.57%) is higher than the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: OGN's dividend (4.57%) is low compared to the top 25% of dividend payers in the US market (4.69%).
Stability and Growth of Payments
Stable Dividend: Too early to tell whether OGN's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if OGN's dividend payments are increasing as they only just started paying a dividend.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (25.7%), OGN's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: At its current cash payout ratio (83%), OGN's dividend payments are covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Kevin Ali (62 yo)
Mr. Kevin Ali is Chief Executive Officer and Director of Organon & Co. since June 2, 2021. Mr. Ali served as the President of Global Enterprise Portfolio Strategy at Merck & Co., Inc. from 2019 to 2021 and...
CEO Compensation Analysis
|Kevin Ali's Compensation vs Organon Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$17m||US$1m|
Compensation vs Market: Kevin's total compensation ($USD16.79M) is above average for companies of similar size in the US market ($USD8.63M).
Compensation vs Earnings: Insufficient data to compare Kevin's compensation with company performance.
Experienced Management: OGN's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Experienced Board: OGN's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
|Owner Type||Number of Shares||Ownership Percentage|
|State or Government||107,500||0.04%|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Organon & Co.'s employee growth, exchange listings and data sources
- Name: Organon & Co.
- Ticker: OGN
- Exchange: NYSE
- Founded: 2020
- Industry: Pharmaceuticals
- Sector: Pharmaceuticals & Biotech
- Implied Market Cap: US$6.234b
- Shares outstanding: 254.33m
- Website: https://www.organon.com
Number of Employees
- Organon & Co.
- 30 Hudson Street
- Floor 33
- Jersey City
- New Jersey
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|OGN *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||May 2021|
|7XP||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||May 2021|
|OGN||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||May 2021|
|0A9W||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||May 2021|
|OGN||ETLX (Eurotlx)||Yes||Common Stock||IT||EUR||May 2021|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/28 00:00|
|End of Day Share Price||2022/09/28 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.