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Organon
(NYSE:OGN)
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Rating:58Neutral
Price Target:
$14.00
â–²(3.55% Upside)
Action:Reiterated
Date:07/31/26
The score is held back primarily by weakened financial performance (sharp revenue decline, thinner net margins) and significant balance-sheet leverage risk, despite continued positive cash generation. Offsetting factors include a constructive price trend versus moving averages, supportive valuation metrics (mid-teens P/E and very high dividend yield), and positive corporate-event momentum from shareholder approval of the Sun Pharma merger.
Positive Factors
Diversified pharma franchise
Organon’s business spans women’s health, biosimilars and established off‑patent brands, providing multiple revenue engines. This diversification reduces single‑product concentration risk, helps stabilize cash flows across market cycles and supports resilience during therapeutic or regional headwinds.
Negative Factors
Very high financial leverage
Extremely high debt relative to equity and historically negative book equity materially amplify financial risk. Leverage increases interest burden and reduces buffer for operational shocks, constrains strategic flexibility and makes results more sensitive to modest revenue or margin deterioration.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified pharma franchise
Organon’s business spans women’s health, biosimilars and established off‑patent brands, providing multiple revenue engines. This diversification reduces single‑product concentration risk, helps stabilize cash flows across market cycles and supports resilience during therapeutic or regional headwinds.
Read all positive factors
Organon (OGN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.56B
Dividend Yield0.59%
Average Volume (3M)2.49M
Price to Earnings (P/E)16.9
Beta (1Y)0.96
Revenue Growth-2.45%
EPS Growth-70.52%
CountryUS
Employees10,000
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)N/A
Shares Outstanding262,609,440
10 Day Avg. Volume2,649,575
30 Day Avg. Volume2,485,601
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Organon Business Overview & Revenue Model
Company Description
Organon & Co., a global pharmaceutical enterprise, is dedicated to developing and delivering a wide array of prescription therapies. Its women's health division features reproductive care products, encompassing birth control and fertility treatmen...
How the Company Makes Money
Organon makes money primarily by selling prescription pharmaceutical products to wholesalers, distributors, pharmacies, hospitals, and other healthcare providers globally. Its revenue model is largely product-sales driven and can be grouped into t...
Organon Financial Statement Overview
Summary
Income Statement
43
Neutral
Balance Sheet
25
Negative
Cash Flow
54
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.57B | 6.22B | 6.40B | 6.26B | 6.17B | 6.30B |
| Gross Profit | 2.40B | 3.36B | 3.71B | 3.75B | 3.88B | 3.92B |
| EBITDA | 934.32M | 1.28B | 1.60B | 1.44B | 1.76B | 1.98B |
| Net Income | 101.11M | 187.00M | 864.00M | 1.02B | 917.00M | 1.35B |
Balance Sheet | ||||||
| Total Assets | 13.18M | 12.87B | 13.10B | 12.06B | 10.96B | 10.68B |
| Cash, Cash Equivalents and Short-Term Investments | 1.13M | 574.00M | 675.00M | 693.00M | 706.00M | 737.00M |
| Total Debt | 8.55M | 8.80B | 9.04B | 8.93B | 9.11B | 9.36B |
| Total Liabilities | 12.17M | 12.12B | 12.63B | 12.13B | 11.85B | 12.19B |
| Stockholders Equity | 1.01M | 752.00M | 472.00M | -70.00M | -892.00M | -1.51B |
Cash Flow | ||||||
| Free Cash Flow | 245.25M | 538.00M | 588.00M | 538.00M | 431.00M | 1.97B |
| Operating Cash Flow | 405.33M | 700.00M | 939.00M | 799.00M | 858.00M | 2.46B |
| Investing Cash Flow | -179.69M | -390.00M | -513.00M | -260.00M | -420.00M | -481.00M |
| Financing Cash Flow | -263.05M | -561.00M | -368.00M | -569.00M | -433.00M | -1.33B |
Organon Technical Analysis
Positive
13.52
Price Trends
13.47
Positive
11.37
Positive
9.53
Positive
Market Momentum
0.05
Positive
62.43
Neutral
59.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OGN, the sentiment is Positive. The current price of 13.52 is above the 20-day moving average (MA) of 13.52, above the 50-day MA of 13.47, and above the 200-day MA of 9.53, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 62.43 is Neutral, neither overbought nor oversold. The STOCH value of 59.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OGN.
Organon Risk Analysis
Organon disclosed 47 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $133.41B | 14.39 | 46.75% | 4.33% | 3.13% | 83.17% | |
72 Outperform | $104.29B | 16.10 | 28.35% | 3.50% | 8.82% | 48.32% | |
72 Outperform | $321.57B | 36.58 | 17.93% | 2.56% | 2.70% | -48.28% | |
69 Neutral | $103.78B | 22.77 | 5.52% | 5.58% | 23.68% | -30.90% | |
63 Neutral | $6.84B | 14.87 | 7.88% | 3.72% | 6.84% | 61.67% | |
58 Neutral | $3.56B | 16.94 | 15.79% | 0.59% | -2.45% | -70.52% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
OGN
Organon
13.55
3.97
41.37%
BMY
Bristol-Myers Squibb
65.47
22.15
51.13%
GSK
GlaxoSmithKline
51.51
15.18
41.78%
GRFS
Grifols SA
7.86
-2.60
-24.86%
MRK
Merck & Company
130.20
52.92
68.49%
SNY
Sanofi
43.08
-3.13
-6.77%
Organon Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A TransactionsRegulatory Filings and Compliance
Organon Reports Q2 Results Amid Pending Sun Pharma Merger
Neutral
Jul 31, 2026
On July 31, 2026, Organon Co. filed its Form 10-Q with the SEC, releasing financial results for the quarter ended June 30, 2026 while maintaining its suspension of traditional earnings press releases and conference calls because of its pending me...
Business Operations and StrategyM&A TransactionsShareholder Meetings
Organon Shareholders Approve Merger with Sun Pharma
Positive
Jul 23, 2026
On July 23, 2026, Organon held a virtual special meeting of stockholders to vote on a proposed merger under an agreement dated April 26, 2026 with Sun Pharmaceutical Holdings USA, Inc. and its subsidiary. The plan calls for Organon to be merged wi...
Legal ProceedingsM&A TransactionsRegulatory Filings and ComplianceShareholder Meetings
Organon Issues Supplemental Disclosures on Sun Pharma Merger
Neutral
Jul 17, 2026
On April 26, 2026, Organon agreed to be acquired through a merger in which it will become a wholly owned subsidiary of Sun Pharmaceutical Holdings USA, Inc., and subsequently filed a definitive proxy statement on June 17, 2026, ahead of a July 23,...
Executive/Board ChangesShareholder Meetings
Organon Shareholders Approve Board, Pay and Incentive Plan
Positive
Jun 11, 2026
At its 2026 annual meeting held on June 9, 2026, Organon stockholders elected ten board nominees to serve until the 2027 meeting, with each director receiving strong majority support despite some variation in opposing votes. Shareholders also appr...
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.