ORGANON & CO (OGN)
US68622V1061 - Common Stock
OGN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 193 industry peers in the Pharmaceuticals industry. While OGN has a great profitability rating, there are quite some 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.
OGN had a positive operating cash flow in the past year.
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 better Return On Assets (10.20%) than 92.63% of its industry peers.
Looking at the Return On Equity, with a value of 263.89%, OGN belongs to the top of the industry, outperforming 99.47% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.22%, OGN belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
OGN had an Average Return On Invested Capital over the past 3 years of 15.86%. This is significantly below the industry average of 43.18%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.2% | ||
| ROE | 263.89% | ||
| ROIC | 12.22% |
ROA(3y)9.83%
ROA(5y)16.28%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)15.86%
ROIC(5y)21.67%
1.3 Margins
OGN has a better Profit Margin (20.30%) than 93.16% of its industry peers.
OGN's Profit Margin has declined in the last couple of years.
OGN's Operating Margin of 23.23% is amongst the best of the industry. OGN outperforms 90.53% of its industry peers.
In the last couple of years the Operating Margin of OGN has declined.
OGN has a better Gross Margin (58.26%) than 66.32% of its industry peers.
In the last couple of years the Gross Margin of OGN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.23% | ||
| PM (TTM) | 20.3% | ||
| GM | 58.26% |
OM growth 3Y-21.75%
OM growth 5Y-6.67%
PM growth 3Y-20.95%
PM growth 5Y-5.8%
GM growth 3Y-3.96%
GM growth 5Y2.85%
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.
The number of shares outstanding for OGN has been increased compared to 1 year ago.
The number of shares outstanding for OGN has been increased compared to 5 years ago.
OGN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.37, we must say that OGN is in the distress zone and has some risk of bankruptcy.
OGN has a better Altman-Z score (1.37) than 62.11% of its industry peers.
The Debt to FCF ratio of OGN is 13.54, which is on the high side as it means it would take OGN, 13.54 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 13.54, OGN is doing good in the industry, outperforming 80.00% of the companies in the same industry.
A Debt/Equity ratio of 17.73 is on the high side and indicates that OGN has dependencies on debt financing.
The Debt to Equity ratio of OGN (17.73) is worse than 86.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 17.73 | ||
| Debt/FCF | 13.54 | ||
| Altman-Z | 1.37 |
ROIC/WACC1.51
WACC8.1%
2.3 Liquidity
A Current Ratio of 1.70 indicates that OGN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.70, OGN is not doing good in the industry: 65.79% of the companies in the same industry are doing better.
A Quick Ratio of 1.21 indicates that OGN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.21, OGN is doing worse than 74.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
OGN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.49%.
The earnings per share for OGN have been decreasing by -14.05% on average. This is quite bad
OGN shows a small growth in Revenue. In the last year, the Revenue has grown by 4.21%.
OGN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -8.52% yearly.
EPS 1Y (TTM)0.49%
EPS 3Y-22.36%
EPS 5Y-14.05%
EPS Q2Q%0%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y-1.39%
Revenue growth 5Y-8.52%
Sales Q2Q%4.15%
3.2 Future
The Earnings Per Share is expected to grow by 0.00% on average over the next years.
OGN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.06% yearly.
EPS Next Y0.58%
EPS Next 2Y1.37%
EPS Next 3Y2.41%
EPS Next 5Y0%
Revenue Next Year2.9%
Revenue Next 2Y2.37%
Revenue Next 3Y2.08%
Revenue Next 5Y-0.06%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 3.66 indicates a rather cheap valuation of OGN.
Based on the Price/Earnings ratio, OGN is valued cheaper than 98.42% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.55. OGN is valued rather cheaply when compared to this.
OGN is valuated cheaply with a Price/Forward Earnings ratio of 3.51.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OGN indicates a rather cheap valuation: OGN is cheaper than 97.89% of the companies listed in the same industry.
OGN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.66 | ||
| Fwd PE | 3.51 |
4.2 Price Multiples
OGN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OGN is cheaper than 93.68% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OGN indicates a rather cheap valuation: OGN is cheaper than 96.32% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.96 | ||
| EV/EBITDA | 6.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
OGN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)6.34
PEG (5Y)N/A
EPS Next 2Y1.37%
EPS Next 3Y2.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.76%, OGN is a good candidate for dividend investing.
The stock price of OGN dropped by -22.05% 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.
OGN's Dividend Yield is rather good when compared to the industry average which is at 4.42. OGN pays more dividend than 98.42% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, OGN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.76% |
5.2 History
OGN has been paying a dividend for less than 5 years, so it still needs to build a 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 22.75% of its income as dividend. This is a sustainable payout ratio.
DP22.75%
EPS Next 2Y1.37%
EPS Next 3Y2.41%
ORGANON & CO
NYSE:OGN (12/26/2024, 8:04:01 PM)
After market: 14.7934 -0.16 (-1.05%)14.95
+0.22 (+1.49%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners80.76%
Inst Owner Change1%
Ins Owners0.21%
Ins Owner Change6.68%
Market Cap3.85B
Analysts68.57
Price Target23.17 (54.98%)
Short Float %5.32%
Short Ratio4.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.76% |
Dividend Growth(5Y)N/A
DP22.75%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.78%
Min EPS beat(2)-4.65%
Max EPS beat(2)3.1%
EPS beat(4)3
Avg EPS beat(4)6.97%
Min EPS beat(4)-4.65%
Max EPS beat(4)24.44%
EPS beat(8)4
Avg EPS beat(8)2.46%
EPS beat(12)8
Avg EPS beat(12)6.79%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-1.06%
Min Revenue beat(2)-2.43%
Max Revenue beat(2)0.32%
Revenue beat(4)3
Avg Revenue beat(4)0.58%
Min Revenue beat(4)-2.43%
Max Revenue beat(4)2.27%
Revenue beat(8)4
Avg Revenue beat(8)-0.63%
Revenue beat(12)8
Avg Revenue beat(12)0.08%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.24%
PT rev (3m)0.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.14%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-5.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.41%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.66 | ||
| Fwd PE | 3.51 | ||
| P/S | 0.6 | ||
| P/FCF | 5.96 | ||
| P/OCF | 4.07 | ||
| P/B | 7.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.74 |
EPS(TTM)4.09
EY27.36%
EPS(NY)4.25
Fwd EY28.46%
FCF(TTM)2.51
FCFY16.78%
OCF(TTM)3.67
OCFY24.57%
SpS24.89
BVpS1.91
TBVpS-18.92
PEG (NY)6.34
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.2% | ||
| ROE | 263.89% | ||
| ROCE | 14.95% | ||
| ROIC | 12.22% | ||
| ROICexc | 13.23% | ||
| ROICexgc | 31.75% | ||
| OM | 23.23% | ||
| PM (TTM) | 20.3% | ||
| GM | 58.26% | ||
| FCFM | 10.08% |
ROA(3y)9.83%
ROA(5y)16.28%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)15.86%
ROIC(5y)21.67%
ROICexc(3y)17.33%
ROICexc(5y)22.8%
ROICexgc(3y)54.35%
ROICexgc(5y)62.3%
ROCE(3y)19.41%
ROCE(5y)27.68%
ROICexcg growth 3Y-20.24%
ROICexcg growth 5Y-14.74%
ROICexc growth 3Y-21.89%
ROICexc growth 5Y-14.11%
OM growth 3Y-21.75%
OM growth 5Y-6.67%
PM growth 3Y-20.95%
PM growth 5Y-5.8%
GM growth 3Y-3.96%
GM growth 5Y2.85%
F-Score5
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 17.73 | ||
| Debt/FCF | 13.54 | ||
| Debt/EBITDA | 5 | ||
| Cap/Depr | 115.39% | ||
| Cap/Sales | 4.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.09% | ||
| Profit Quality | 49.65% | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 1.37 |
F-Score5
WACC8.1%
ROIC/WACC1.51
Cap/Depr(3y)135.1%
Cap/Depr(5y)122.5%
Cap/Sales(3y)4.59%
Cap/Sales(5y)3.77%
Profit Quality(3y)91.05%
Profit Quality(5y)89.14%
High Growth Momentum
Growth
EPS 1Y (TTM)0.49%
EPS 3Y-22.36%
EPS 5Y-14.05%
EPS Q2Q%0%
EPS Next Y0.58%
EPS Next 2Y1.37%
EPS Next 3Y2.41%
EPS Next 5Y0%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y-1.39%
Revenue growth 5Y-8.52%
Sales Q2Q%4.15%
Revenue Next Year2.9%
Revenue Next 2Y2.37%
Revenue Next 3Y2.08%
Revenue Next 5Y-0.06%
EBIT growth 1Y16.06%
EBIT growth 3Y-22.84%
EBIT growth 5Y-14.63%
EBIT Next Year14.39%
EBIT Next 3Y6.26%
EBIT Next 5Y4%
FCF growth 1Y146.57%
FCF growth 3Y-34.7%
FCF growth 5Y-31.57%
OCF growth 1Y48.28%
OCF growth 3Y-28.51%
OCF growth 5Y-26.35%