Organon (OGN)
NYSE:OGN
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Organon
(NYSE:OGN)
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Rating:49Neutral
Price Target:
$7.00
▲(19.45% Upside)
Action:ReiteratedDate:04/10/26
The score is held down primarily by weakened profitability and a highly levered balance sheet despite steady cash generation. Technicals also remain fragile (below key long-term moving averages with negative MACD). Valuation is supportive with a low P/E, and the latest call suggests a steadier 2026 with ongoing cost control and deleveraging, but meaningful product and margin headwinds persist.
Positive Factors
Biosimilars growth and commercialization capability
Sustained high-growth in biosimilars (Hadlima +61% ex-FX) shows durable commercial execution and pipeline cadence. A growing biosimilars franchise diversifies revenue vs. branded LOE, supports scale across markets and provides predictable mid-term contribution as new launches offset declines.
Negative Factors
Very high leverage and thin equity base
Heavy debt relative to equity leaves the company sensitive to earnings volatility and limits strategic flexibility. Large interest obligations (~$500M guidance) constrain free cash flow deployment, increase refinancing risk, and mean deleveraging must remain a multi-quarter focus to restore balance-sheet durability.
Read all positive and negative factors
Positive Factors
Negative Factors
Biosimilars growth and commercialization capability
Sustained high-growth in biosimilars (Hadlima +61% ex-FX) shows durable commercial execution and pipeline cadence. A growing biosimilars franchise diversifies revenue vs. branded LOE, supports scale across markets and provides predictable mid-term contribution as new launches offset declines.
Read all positive factors
Organon (OGN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.80B
Dividend Yield4.8%
Average Volume (3M)3.40M
Price to Earnings (P/E)9.9
Beta (1Y)0.62
Revenue Growth-1.69%
EPS Growth-61.89%
CountryUS
Employees10,000
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)0.63
Shares Outstanding260,315,640
10 Day Avg. Volume2,930,977
30 Day Avg. Volume3,401,658
Financial Highlights & Ratios
PEG Ratio-0.13
Price to Book (P/B)2.47
Price to Sales (P/S)0.30
P/FCF Ratio3.46
Enterprise Value/Market Cap5.57
Enterprise Value/Revenue1.61
Enterprise Value/Gross Profit3.01
Enterprise Value/Ebitda7.72
Forecast
1Y Price Target
$9.33Price Target Upside59.27% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering4
EPS Forecast (FY)3.47
Revenue Forecast (FY)$6.16B
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...
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 oper...
Organon Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Neutral
The call presents a mixed picture: several strong, tangible positives (stable full-year guidance, robust biosimilars growth—Hadlima +61% ex-FX—Vtama/Emgality momentum, >$200M cost savings, $960M free cash flow, $390M Jada divestiture and active deleveraging). Offsetting these are meaningful near-term commercial and margin headwinds (revenue down ~3% FY, Q4 -8% CC; Nexplanon channel and policy impacts with Q4 Nexplanon -20% ex-FX; respiratory pricing pressure; gross margin deterioration and a Q4 goodwill impairment), plus some governance/uncertainty from unresolved audit matters. Management expects flat 2026 results and continued focus on cost discipline and balance sheet repair, but several execution and market risks remain.Positive Updates
Annual Revenue and Adjusted EBITDA (2025) and 2026 Guidance
Organon delivered $6.2 billion of revenue and $1.9 billion of adjusted EBITDA in 2025 (revenue down ~3% year-over-year reported and ex-FX). Management guides to roughly flat results for 2026 (about $6.2B revenue and ~$1.9B adjusted EBITDA), signaling stability at current run-rate.
Negative Updates
Topline and Quarterly Weakness
Q4 revenue was $1.57 billion, down ~8% at constant currency. Full-year revenue declined ~3% year-over-year. Company faced LOE-related volume loss (~$200M full year) and notable pricing headwinds (~$180M negative impact in 2025, ~2.8%).
Read all updates
Q4-2025 Updates
Positive
Negative
Annual Revenue and Adjusted EBITDA (2025) and 2026 Guidance
Organon delivered $6.2 billion of revenue and $1.9 billion of adjusted EBITDA in 2025 (revenue down ~3% year-over-year reported and ex-FX). Management guides to roughly flat results for 2026 (about $6.2B revenue and ~$1.9B adjusted EBITDA), signaling stability at current run-rate.
Read all positive updates
Company Guidance
Organon guided to roughly $6.2 billion of revenue and about $1.9 billion of adjusted EBITDA for full-year 2026 (effectively flat with 2025), anticipating LOE of about $40 million, VBP impact near $30 million, price headwinds of roughly $75 million (≈1.2%), and volume growth of about $150 million (≈2.4%); management expects a modest FX tailwind to broadly offset the loss of Jada revenue (Jada was ~$74 million in 2025; divestiture proceeds ≈$390 million) and projects adjusted gross margin to be 75–100 basis points lower than 2025 (driven mainly by release of accumulated FX on inventory), with SG&A in the mid‑20% of sales range and R&D in the mid‑single‑digit percent range; below‑the‑line assumptions include interest expense of ≈$500 million, depreciation ≈$140 million, a diluted share count of ≈265 million and a non‑GAAP tax rate of 27.5–29.5%; free cash flow is expected to resemble 2024/2025 levels (2025 was $960 million) after ~ $100 million of 2026 manufacturing‑separation costs and higher CapEx/NWC, commercial milestones of ≈$170 million, and the company expects to reduce net leverage from ~4.3x toward below 4.0x by year‑end 2026.Organon Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
18
Very Negative
Cash Flow
55
Neutral
| 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
Neutral
5.86
Price Trends
6.99
Negative
7.34
Negative
8.36
Negative
Market Momentum
-0.19
Negative
58.47
Neutral
60.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OGN, the sentiment is Neutral. The current price of 5.86 is below the 20-day moving average (MA) of 6.16, below the 50-day MA of 6.99, and below the 200-day MA of 8.36, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 58.47 is Neutral, neither overbought nor oversold. The STOCH value of 60.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OGN.
Organon Risk Analysis
Organon disclosed 46 risk factors in its most recent earnings report. Organon reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Organon Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $121.42B | 15.61 | 39.27% | 4.11% | -0.22% | ― | |
69 Neutral | $113.92B | -31.42 | 14.71% | 4.58% | -9.32% | 120.62% | |
68 Neutral | $303.31B | 14.46 | 36.19% | 3.12% | 1.49% | 7.89% | |
67 Neutral | $116.26B | 13.19 | 37.19% | 3.41% | 7.51% | 132.14% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $1.80B | 9.95 | 25.50% | 4.80% | -1.69% | -61.89% | |
48 Neutral | $6.45B | 14.03 | 7.56% | 1.56% | 9.45% | 167.00% |
* Healthcare Sector Average
OGN
Organon
6.91
-4.41
-38.96%
BMY
Bristol-Myers Squibb
59.47
11.41
23.75%
GSK
GlaxoSmithKline
58.36
26.05
80.61%
GRFS
Grifols SA
8.05
1.62
25.19%
MRK
Merck & Company
122.68
47.85
63.94%
SNY
Sanofi
47.08
-1.05
-2.18%
Organon Corporate Events
Financial DisclosuresRegulatory Filings and Compliance
Organon Audit Review Finds No Issues, 10-K On Track
Positive
Feb 20, 2026
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...
Business Operations and StrategyFinancial Disclosures
Organon Reports Soft Q4 2025 Results, Biosimilars Grow
Negative
Feb 12, 2026
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,...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.