Organon (OGN) AI Stock Analysis

• Market Cap: $1.66B
• Dividend Yield: 4.8%
• Average Volume (3M): 4.11M
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.55
• Revenue Growth: -1.69%
• EPS Growth: -61.89%
• Country: US
• Employees: 10,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 0.63
• Shares Outstanding: 260,315,640
• 10 Day Avg. Volume: 3,100,708
• 30 Day Avg. Volume: 4,112,348
• PEG Ratio: -0.13
• Price to Book (P/B): 2.47
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 3.46
• Enterprise Value/Market Cap: 5.95
• Enterprise Value/Revenue: 1.59
• Enterprise Value/Gross Profit: 2.97
• Enterprise Value/Ebitda: 7.61
• 1Y Price Target: $9.33
• Price Target Upside: 46.01% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 4
• EPS Forecast (FY): 3.47
• Revenue Forecast (FY): $6.16B

• Rating: 52 Neutral
• Price Target: $6.50 ▲(1.72% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

OGN scores in the low-to-mid range primarily due to weak profitability trends and heavy leverage despite resilient cash generation. Technicals are mixed with negative MACD and the stock still below its 200-day average. Valuation helps (P/E ~11 and very high yield), but the latest call points to flat 2026 performance with meaningful commercial and margin headwinds, keeping overall risk elevated.

Positive Factors

Consistent Free Cash Flow

Organon’s consistent free cash flow generation (≈$960M in 2025 and positive operating cash flow annually) provides durable internal funding for debt reduction, share activity, and targeted investment. Sustained FCF supports deleveraging and strategic flexibility over the next 2–6 months.

Biosimilars Growth and Pipeline

Rapid biosimilars growth, led by Hadlima (+61% ex-FX) and new denosumab/toficence assets, represents a structurally expanding franchise. This diversifies revenue away from legacy brands and offers sustainable mid-term growth as new launches offset declines in older biosimilars.

Regulatory Win for Nexplanon

Extension of Nexplanon’s approved duration to 5 years materially expands lifetime usage and addressable market, especially for higher-BMI patients. This regulatory change is a durable product-level enhancement that can support unit demand and revenue per patient over multiple years.

Negative Factors

High Leverage

Organon’s very high absolute debt and extreme debt-to-equity ratio limit financial flexibility and make performance highly sensitive to earnings volatility. Elevated interest burden (~$500M) and leverage slow strategic optionality and increase downside risk if cash generation weakens.

Gross Margin & Pricing Pressure

Material gross margin erosion and ongoing pricing headwinds reflect structural reimbursement and product-mix pressures. Persistently lower gross margins compress earnings power and slow deleveraging, forcing reliance on cost cuts rather than sustainable top-line improvement.

Concentration & Commercial Headwinds

Heavy exposure to a few products leaves Organon vulnerable to policy, channel shifts, LOE, and regional demand swings. Nexplanon declines, China fertility weakness, and respiratory pricing losses show structural commercial risks that can depress revenue stability and margin recovery.

Organon Business Overview & Revenue Model

Company Description

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. It also offers cardiovascular products, consisting of several cholesterol-modifying medicines under the Zetia, Ezetrol, Vytorin, Inegy, Rosuzet, and Zocor brands; Cozaar and Hyzaar for the treatment of hypertension; respiratory products for various treatments to control and prevent symptoms caused by asthma under the Singulair, Dulera, Zenhale, and Asmanex brand names; and Singulair, Nasonex, Clarinex, and Aerius for treating seasonal allergic rhinitis. In addition, the company provides dermatology products under the Diprosone and Elocon brand; bone health portfolio, including Fosamax brand name; non-opioid pain management products under the Arcoxia, Diprospan, and Celestone brand names; Proscar for the treatment of symptomatic benign prostatic hyperplasia; and Propecia for the treatment of male pattern hair loss. The company sells its products primarily to drug wholesalers and retailers, hospitals, and government agencies, as well as managed health care providers, such as health maintenance organizations, pharmacy benefit managers, and other institutions. Organon & Co. was incorporated in 2020 and is based in Jersey City, New Jersey.

How the Company Makes Money

Organon primarily makes money by selling pharmaceutical products to customers such as wholesalers, distributors, pharmacies, hospitals, governments, and other healthcare providers across global markets. Revenue is largely generated from three operating areas: (1) Women’s Health, where sales come from contraception and fertility-related products and other women’s health therapies; (2) Established Brands, where revenue comes from a portfolio of mature, off-patent or later-life-cycle branded prescription medicines that continue to generate demand in many countries; and (3) Biosimilars, where Organon earns revenue from commercializing biosimilar medicines, including through collaboration arrangements. In addition to product sales, Organon may earn income from certain partnership-related arrangements (such as profit-sharing, commercialization collaboration economics, and/or milestone and other payments) when applicable; if specific deal terms or amounts are not publicly available for a given period, they are not enumerated here. Key factors influencing earnings include pricing and reimbursement dynamics by country, product mix and lifecycle (including competition from generics/biosimilars), geographic expansion and distribution reach, and the performance of partnered biosimilar programs and commercialization agreements.

Organon Financial Statement Overview

Summary

Cash generation is a clear positive (positive operating cash flow and ~$0.54B FCF in 2025), but fundamentals are weighed down by a sharp drop in net profitability (net margin ~3% in 2025 vs ~13.5% in 2024) and a highly levered balance sheet (debt-to-equity ~9.5x), which limits flexibility and raises risk if earnings remain pressured.

Income Statement

Revenue has been essentially flat to slightly down in recent years (2025 annual revenue down ~1% after modest growth in 2024), but profitability has deteriorated materially. Net margin fell sharply to ~3.0% in 2025 from ~13.5% in 2024 (and ~16.3% in 2023), and gross margin also compressed versus prior years, signaling weaker earnings power despite still-decent operating margins (~20.7% EBIT margin; ~26.4% EBITDA margin in 2025). Overall, the trajectory shows pressure on the bottom line and reduced consistency versus earlier periods (2020–2022).

Balance Sheet

Leverage is the dominant issue: total debt remains very high (~$8.6B in 2025) relative to a thin equity base (~$0.9B), resulting in an elevated debt-to-equity of ~9.5x (and even higher in 2024). While equity has improved from negative levels in 2021–2023, the capital structure is still highly levered, limiting financial flexibility and increasing sensitivity to earnings volatility. Return on equity appears positive in 2025 (~20.6%), but given the low equity base and recent earnings drop, the quality and durability of returns look less stable.

Cash Flow

Cash generation remains a relative strength: operating cash flow was positive in every year provided, with 2025 operating cash flow of ~$0.7B and free cash flow of ~$0.54B. Free cash flow has held roughly steady from 2023 to 2025 (though 2025 declined ~5% vs. 2024), and free cash flow still covered net income in 2025 (~0.77x). The main weakness is that cash flow is not especially strong versus debt levels (operating cash flow to debt ~0.29x in 2025), which constrains deleveraging capacity if profitability remains pressured.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.22B	6.40B	6.26B	6.17B	6.30B
Gross Profit	3.36B	3.71B	3.75B	3.88B	3.92B
EBITDA	1.28B	1.60B	1.44B	1.76B	1.98B
Net Income	187.00M	864.00M	1.02B	917.00M	1.35B
Balance Sheet
Total Assets	12.87B	13.10B	12.06B	10.96B	10.68B
Cash, Cash Equivalents and Short-Term Investments	574.00M	675.00M	693.00M	706.00M	737.00M
Total Debt	8.80B	9.04B	8.93B	9.11B	9.36B
Total Liabilities	12.12B	12.63B	12.13B	11.85B	12.19B
Stockholders Equity	752.00M	472.00M	-70.00M	-892.00M	-1.51B
Cash Flow
Free Cash Flow	538.00M	588.00M	538.00M	431.00M	1.97B
Operating Cash Flow	700.00M	939.00M	799.00M	858.00M	2.46B
Investing Cash Flow	-390.00M	-513.00M	-260.00M	-420.00M	-481.00M
Financing Cash Flow	-561.00M	-368.00M	-569.00M	-433.00M	-1.33B

Organon Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OGN, the sentiment is Negative. The current price of 6.39 is below the 20-day moving average (MA) of 7.01, below the 50-day MA of 7.81, and below the 200-day MA of 8.65, indicating a bearish trend. The MACD of -0.42 indicates Positive momentum. The RSI at 31.94 is Neutral, neither overbought nor oversold. The STOCH value of 14.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OGN.

Organon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BMY	71 Outperform	$121.60B	15.61	39.27%	4.84%	1.26%	―
SNY	69 Neutral	$106.76B	-31.42	14.71%	4.58%	-9.32%	120.62%
MRK	68 Neutral	$286.48B	14.46	36.19%	3.12%	1.59%	58.02%
GSK	67 Neutral	$107.60B	13.19	37.19%	3.41%	5.97%	128.66%
GRFS	56 Neutral	$6.57B	14.03	7.56%	1.56%	9.45%	167.00%
OGN	52 Neutral	$1.66B	9.95	25.50%	4.80%	-1.69%	-61.89%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Organon Corporate Events

Organon Audit Review Finds No Issues, 10-K On Track

On February 12, 2026, Organon disclosed that its Board’s Audit Committee had launched an independent review into the timing of the company’s prior-year biosimilar purchases from a supplier, after issues were raised on February 11, 2026. The committee, supported by outside counsel, has now completed its work and concluded that no action is required, finding no improper conduct in the transactions and no need to adjust previously issued financial statements or related disclosures to the U.S. Securities and Exchange Commission.

The company also said it plans to file its annual report on Form 10-K for the year ended December 31, 2025 within the expected timeframe, suggesting its reporting schedule and financial controls remain intact despite the scrutiny. The outcome is likely to reassure investors and other stakeholders concerned about potential accounting or compliance issues arising from the biosimilar purchasing arrangements and their treatment in Organon’s past financial reporting.

The most recent analyst rating on (OGN) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Organon stock, see the OGN Stock Forecast page.

Organon Reports Soft Q4 2025 Results, Biosimilars Grow

Organon (NYSE: OGN), based in Jersey City, N.J., operates in the pharmaceuticals sector with a portfolio spanning women’s health, biosimilars and established brands. Key products include contraceptive implant Nexplanon, fertility treatments, respiratory drugs such as Singulair, migraine therapy Emgality, dermatology drug Vtama and a growing biosimilars franchise, positioning the company across both specialty and mature therapeutics markets.

The company reported its fourth-quarter and full-year 2025 results on February 12, 2026, with annual revenue of $6.2 billion, down 3% year on year, and full-year adjusted EBITDA of $1.91 billion, implying a 30.7% margin. Quarterly revenue fell 5% to $1.507 billion, as women’s health, notably Nexplanon, declined on U.S. wholesaler practice changes, policy-driven access limits and softer demand, while biosimilars grew 11% on strong Hadlima and new denosumab and tocilizumab assets.

Established brands slipped modestly as contributions from Emgality, Vtama and Arcoxia were offset by pricing and volume pressure in respiratory drugs, particularly amid revised guidelines that deprioritize montelukast globally. Profitability weakened, with Q4 gross margin dropping to 49.2% from 56.3% and a net loss of $205 million versus prior-year profit, driven by one-time manufacturing optimization costs, unfavorable pricing, FX and product mix, even as management emphasized balance sheet repair and a 2026 outlook broadly in line with 2025 performance.

The most recent analyst rating on (OGN) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Organon stock, see the OGN Stock Forecast page.