Organon (OGN) AI Stock Analysis

• Market Cap: $2.58B
• Dividend Yield: 0.8%
• Average Volume (3M): 3.87M
• Price to Earnings (P/E): 3.4
• Beta (1Y): 0.41
• Revenue Growth: -0.84%
• EPS Growth: -28.91%
• Country: US
• Employees: 10,000
• Sector: Healthcare
• Sector Strength: 40
• Industry: Drug Manufacturers - General
• EPS (TTM): 1.02
• Shares Outstanding: 259,956,050
• 10 Day Avg. Volume: 3,440,747
• 30 Day Avg. Volume: 3,867,330
• PEG Ratio: -0.25
• Price to Book (P/B): 4.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.83
• Enterprise Value/Market Cap: 4.22
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 3.03
• Enterprise Value/Ebitda: 1.70
• 1Y Price Target: $14.00
• Price Target Upside: 40.85% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 66 Neutral
• Price Target: $10.50 ▲(5.63%Upside)

Organon's stock score reflects a combination of attractive valuation and promising corporate events against a backdrop of financial challenges and technical uncertainties. The company's ability to manage debt and stabilize revenues will be crucial for future performance.

Positive Factors

Debt Repayment

The dividend cut frees up approximately $200 million per year in cash, which can be re-deployed towards debt repayment.

Product Launch

Nexplanon - 5-year indication expected to launch with management expecting to surpass $1B in sales in 2025.

Negative Factors

Dividend Cut

Organon plans to cut its dividend by 90%, ending a nearly 2-year investor debate.

Financial Health

Updated financials include a $6 million charge reported in the first quarter, which could impact the company's financial health.

Organon Business Overview & Revenue Model

Company Description

Organon (OGN) is a global healthcare company that focuses on improving the health of women throughout their lives. It operates in three primary sectors: Women's Health, Biosimilars, and Established Brands. Organon's core products and services include a range of contraceptives, fertility solutions, hormone replacement therapies, and biosimilar products, alongside a broad portfolio of established medicines across various therapeutic areas.

How the Company Makes Money

Organon makes money through the sale of its healthcare products and solutions across its three main business segments. In Women's Health, revenue is generated from contraceptives, fertility solutions, and hormone therapies. The Biosimilars segment contributes to earnings through the development and commercialization of biologic medicines that are highly similar to already approved reference products, offering cost-effective alternatives. The Established Brands segment, which consists of a wide range of legacy pharmaceutical products, provides a stable revenue stream as these products continue to be used in various therapeutic areas. Additionally, Organon engages in strategic partnerships and collaborations to enhance its product offerings and expand market reach, further contributing to its revenue.

Organon Financial Statement Overview

Summary

Organon's financial performance is challenged by declining revenues and high leverage, but is supported by strong profitability margins and efficient cash flow generation. The income statement and balance sheet reveal risks due to declining revenue and high debt, although cash flow remains robust.

Income Statement

Organon's income statement shows a declining revenue trend from $8.09B in 2020 to $4.78B TTM (Trailing-Twelve-Months) in 2025, indicating a challenging revenue environment. The gross profit margin for TTM is strong at approximately 57.7%, but net profit margin has decreased to about 13.9%. EBIT and EBITDA margins remain healthy at 22.4% and 24.6%, respectively, though there is a noticeable decline in absolute profitability over recent years.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, which is typical for the industry but risky, with total debt significantly exceeding equity. The stockholders' equity is notably low, impacting the equity ratio negatively. Return on equity cannot be reliably calculated due to historical negative equity figures, posing concerns about financial stability and risk exposure.

Cash Flow

Organon's cash flow statement highlights a volatile but generally positive free cash flow, with a TTM free cash flow of $608M. The operating cash flow to net income ratio is robust, indicating efficient cash generation relative to net income. However, fluctuations in free cash flow growth and high capital expenditures require careful monitoring.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.40B	6.26B	6.17B	6.30B	8.10B
Gross Profit	3.71B	3.75B	3.88B	3.92B	4.75B
EBITDA	1.61B	1.44B	1.69B	1.81B	2.99B
Net Income	864.00M	1.02B	917.00M	1.35B	2.16B
Balance Sheet
Total Assets	13.10B	12.06B	10.96B	10.68B	10.43B
Cash, Cash Equivalents and Short-Term Investments	675.00M	693.00M	706.00M	737.00M	500.00M
Total Debt	8.88B	8.76B	8.91B	9.13B	31.00M
Total Liabilities	12.63B	12.13B	11.85B	12.19B	11.25B
Stockholders Equity	472.00M	-70.00M	-892.00M	-1.51B	-820.00M
Cash Flow
Free Cash Flow	764.00M	538.00M	431.00M	1.97B	1.91B
Operating Cash Flow	939.00M	799.00M	858.00M	2.46B	2.19B
Investing Cash Flow	-513.00M	-260.00M	-420.00M	-481.00M	-258.00M
Financing Cash Flow	-368.00M	-569.00M	-433.00M	-1.33B	-2.17B

Organon Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.94
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 9.94 is above the 20-day moving average (MA) of 9.92, above the 50-day MA of 9.45, and below the 200-day MA of 13.72, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 48.55 is Neutral, neither overbought nor oversold. The STOCH value of 41.95 is Neutral, 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
GRFS	72 Outperform	$8.27B	31.60	3.34%	―	9.67%	1.92%
PFE	72 Outperform	$145.83B	18.59	8.62%	6.71%	13.38%	―
SNY	67 Neutral	$118.15B	20.23	7.34%	4.55%	-4.57%	2.96%
OGN	66 Neutral	$2.58B	3.44	254.24%	0.80%	-0.84%	-28.91%
BMY	66 Neutral	$95.36B	17.59	31.99%	5.29%	4.62%	―
GSK	59 Neutral	$76.48B	19.64	22.26%	4.48%	4.17%	-29.96%
Sector *	52 Neutral	$7.52B	0.19	-63.81%	2.30%	16.15%	0.40%

Organon Corporate Events

Organon Concludes Annual Meeting with Key Decisions

On June 10, 2025, Organon held its Annual Meeting where stockholders voted on five proposals. The meeting saw approximately 83% of shares represented, with key decisions including the election of eleven directors, approval of executive compensation, amendment of the 2021 Incentive Stock Plan, ratification of PricewaterhouseCoopers LLP as the accounting firm, and rejection of a stockholder proposal for a new Director Election Resignation Guideline.

The most recent analyst rating on (OGN) stock is a Sell with a $20.00 price target. To see the full list of analyst forecasts on Organon stock, see the OGN Stock Forecast page.

Organon Receives FDA Interchangeability for HADLIMA

On May 27, 2025, Organon & Co. announced that the U.S. Food and Drug Administration (FDA) granted interchangeability designation to their product HADLIMA™ (adalimumab-bwwd) as a biosimilar to Humira®. This designation allows pharmacists to substitute HADLIMA for Humira without consulting prescribers, potentially increasing patient access and reducing costs. The designation is based on studies demonstrating comparable pharmacokinetics, efficacy, safety, and immunogenicity with Humira. Organon emphasizes that this approval could lead to significant savings for patients and the healthcare system.

The most recent analyst rating on (OGN) stock is a Sell with a $20.00 price target. To see the full list of analyst forecasts on Organon stock, see the OGN Stock Forecast page.

Organon Reports Q1 2025 Revenue Decline and Guidance

On May 1, 2025, Organon announced its first-quarter financial results, revealing a revenue decline of 7% compared to the previous year, with total revenue of $1.513 billion. The company declared a reduced quarterly dividend and affirmed its financial guidance for 2025, focusing on deleveraging and capital structure improvement. Key growth drivers, Nexplanon and Vtama, are on track to meet their revenue targets, while the company aims to generate over $900 million in free cash flow before one-time costs.

Organon Appoints Ramona Sequeira to Board of Directors

On April 15, 2025, Organon announced the appointment of Ramona A. Sequeira to its Board of Directors, effective July 1, 2025. Sequeira, who brings over 30 years of pharmaceutical industry experience, will serve on the Board’s Talent Committee, expanding the board to 12 directors. Her extensive background in commercial strategy is expected to support Organon’s growth opportunities in its diverse portfolio.