Organon & Co. (OGN) stock analysis

P/E above its 5-year median

Organon's P/E of 18.0 is above its own 5-year median of 5.7.

P/E below the industry

Organon's P/E of 18.0 is below the Drugs median of 25.1.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B above the industry

Organon's price-to-book of 3.06 is above the Drugs median of 2.29.

Trading below fair value

The share price of $13.89 is below our fair value estimate of $15.60.

Margin of safety under 20%

The price is 11.0% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 0.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -41.5% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -57.5% over the last twelve months, against a 5-year average of -38.7% a year.

Growing slower than the industry

Revenue grew -3.2% over the last twelve months; the Drugs median is 8.0%.

Guidance lowered

Organon lowered its Full Year 2026 Guidance FX translation impact outlook on Feb 12, 2026.

Gross margin slipping

Gross margin was 53.1% over the last twelve months, against 55.0% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

Organon's return on equity of 20.3% is above the Drugs median of -58.9%.

Earnings shrank over 5 years

Net income shrank 38.7% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 3.5% over the last twelve months, against a 5-year average of 13.8%.

Net margin above the industry

Organon's net margin of 3.5% is above the Drugs median of -53.0%.

High debt

Debt is 717% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 0.0% five years ago to 717%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 9.9% of total debt; we look for at least 20%.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 2.02 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.04; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Organon paid dividends worth 0.6% of the share price over the last twelve months.

Yield below Treasuries

The 0.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Organon yields 0.6%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 5 fiscal years.

Covered by earnings

Dividends take 9.4% of net income.

Covered by free cash flow

Dividends take 3.0% of free cash flow.