Organon (OGN) AI Stock Analysis

• Market Cap: $2.01B
• Dividend Yield: 4.39%
• Average Volume (3M): 7.71M
• Price to Earnings (P/E): 4.0
• Beta (1Y): 0.48
• Revenue Growth: -1.69%
• EPS Growth: -61.89%
• Country: US
• Employees: 10,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 1.01
• Shares Outstanding: 259,982,900
• 10 Day Avg. Volume: 5,904,251
• 30 Day Avg. Volume: 7,707,633
• PEG Ratio: -0.27
• Price to Book (P/B): 8.13
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 6.52
• Enterprise Value/Market Cap: 5.44
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 3.15
• Enterprise Value/Ebitda: 6.95
• 1Y Price Target: $8.75
• Price Target Upside: 13.05% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 4
• EPS Forecast (FY): 3.82
• Revenue Forecast (FY): $6.25B

• Rating: 52 Neutral
• Price Target: $8.00 ▲(3.36% Upside)

Organon's overall stock score reflects significant financial challenges, including declining revenues and high leverage, which weigh heavily on its financial performance. The technical analysis indicates a bearish trend, further impacting the score. However, the stock's low P/E ratio and high dividend yield offer some valuation appeal, providing a buffer against the negative aspects.

Positive Factors

Operational Efficiency

A strong adjusted EBITDA margin indicates effective cost management and operational efficiency, which are crucial for sustaining profitability.

Cash Generation

Strong cash generation enhances financial flexibility, allowing the company to invest in growth opportunities and manage debt effectively.

Strategic Divestiture

The divestiture of non-core assets like Jada can improve financial health by reducing debt and focusing resources on core business areas.

Negative Factors

Revenue Decline

A downward revision in revenue guidance indicates challenges in maintaining growth, which can impact long-term financial stability.

High Leverage

Significant leverage can strain financial resources, limiting the company's ability to invest in growth and weather economic downturns.

Leadership Uncertainty

Leadership changes amid sales practice investigations can create strategic uncertainty, affecting long-term decision-making and stakeholder confidence.

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 generates revenue primarily through the sale of its pharmaceutical products, which are designed to address various health issues particularly affecting women. Key revenue streams include sales from hormonal contraceptives, menopause therapies, and specialty medications for women's health conditions. Additionally, the company may engage in collaborations and partnerships with other pharmaceutical firms or healthcare organizations to co-develop products, which can also contribute to its earnings. By focusing on a niche market with specific health needs, Organon aims to build a loyal customer base that drives consistent revenue growth.

Organon Financial Statement Overview

Summary

Organon is experiencing declining revenues and high leverage, which are impacting its financial stability. While cash flow management is relatively strong, the company needs to address revenue growth and leverage to improve its financial health.

Income Statement

Organon's income statement shows a significant decline in revenue growth, with a TTM revenue drop of 25.16%. Gross profit margins have decreased slightly from previous years, and net profit margins have also contracted. The EBIT and EBITDA margins have shown some resilience, but overall profitability is under pressure due to declining revenues.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 9.74 in the TTM period, indicating significant financial risk. The return on equity is strong at 78.07%, but this is due to the low equity base. The equity ratio is low, suggesting potential solvency issues.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 20.04% in the TTM period. However, the operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. The free cash flow to net income ratio remains healthy, suggesting efficient cash management despite revenue challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.30B	6.40B	6.26B	6.17B	6.30B	6.53B
Gross Profit	3.47B	3.71B	3.75B	3.88B	3.92B	4.41B
EBITDA	1.57B	1.60B	1.44B	1.76B	1.98B	2.99B
Net Income	501.00M	864.00M	1.02B	917.00M	1.35B	2.16B
Balance Sheet
Total Assets	13.55B	13.10B	12.06B	10.96B	10.68B	10.11B
Cash, Cash Equivalents and Short-Term Investments	672.00M	675.00M	693.00M	706.00M	737.00M	12.00M
Total Debt	8.83B	9.04B	8.93B	9.11B	9.36B	31.00M
Total Liabilities	12.65B	12.63B	12.13B	11.85B	12.19B	4.62B
Stockholders Equity	906.00M	472.00M	-70.00M	-892.00M	-1.51B	5.49B
Cash Flow
Free Cash Flow	566.00M	588.00M	538.00M	431.00M	1.97B	1.91B
Operating Cash Flow	949.00M	939.00M	799.00M	858.00M	2.46B	2.19B
Investing Cash Flow	-621.00M	-513.00M	-260.00M	-420.00M	-481.00M	-258.00M
Financing Cash Flow	-456.00M	-368.00M	-569.00M	-433.00M	-1.33B	-2.17B

Organon Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 7.74 is above the 20-day moving average (MA) of 7.18, below the 50-day MA of 8.68, and below the 200-day MA of 10.49, indicating a neutral trend. The MACD of -0.26 indicates Negative momentum. The RSI at 50.52 is Neutral, neither overbought nor oversold. The STOCH value of 52.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OGN.

Organon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GSK	77 Outperform	$95.55B	13.38	35.62%	3.47%	5.97%	128.66%
MRK	76 Outperform	$259.69B	13.84	39.51%	3.41%	1.59%	58.02%
SNY	75 Outperform	$121.95B	12.50	8.39%	4.42%	-9.32%	120.62%
BMY	69 Neutral	$99.85B	16.56	33.84%	5.04%	1.26%	―
GRFS	65 Neutral	$7.26B	14.12	6.93%	1.62%	9.45%	167.00%
OGN	52 Neutral	$2.01B	4.02	71.62%	4.39%	-1.69%	-61.89%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Organon Corporate Events

Organon & Co. Reports Modest Q3 Revenue Growth

Organon & Co. is a global healthcare company specializing in women’s health and general medicines, including biosimilars, with a focus on expanding access to essential treatments in over 140 markets. In its third-quarter earnings report for 2025, Organon reported a slight increase in revenue to $1.602 billion, with a diluted earnings per share of $0.61 and an adjusted diluted earnings per share of $1.01. The company also announced a net income of $160 million and an adjusted EBITDA of $518 million, reflecting a margin of 32.3%. Despite a 19% increase in biosimilars revenue, driven by strong performance from products like Hadlima and Ontruzant, the company faced a decline in women’s health revenue by 3% due to reduced demand for Nexplanon in the U.S. However, this was partially offset by growth in other products like NuvaRing and Jada. Organon has adjusted its full-year revenue guidance downwards to a range of $6.200 billion to $6.250 billion, with an expected adjusted EBITDA margin of around 31.0%. Looking ahead, Organon remains focused on leveraging its diverse portfolio and exercising cost discipline to reduce debt and pursue growth opportunities in women’s health.

Organon Reports Q3 2025 Financial Results

Organon reported its third-quarter 2025 financial results, showing a slight increase in revenue to $1.602 billion, up 1% as-reported but down 1% excluding foreign currency impacts. The company lowered its full-year revenue guidance to $6.200 billion to $6.250 billion and adjusted EBITDA margin to approximately 31.0%. The quarter saw a decline in women’s health revenue by 3% as-reported, while biosimilars revenue increased by 19% due to strong performance of certain products. Organon is focusing on cost discipline and debt reduction to create capacity for future growth opportunities.

The most recent analyst rating on (OGN) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Organon stock, see the OGN Stock Forecast page.

Grace Puma to Step Down from Organon Board

On November 3, 2025, Grace Puma announced she will not seek re-election at Organon & Co.’s 2026 Annual Meeting of Stockholders. Ms. Puma, who has been on the Board of Directors since 2021 and serves on the Talent Committee, will continue her role until the meeting. Her decision to step down is not due to any disagreements with the company or its management.

The most recent analyst rating on (OGN) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Organon stock, see the OGN Stock Forecast page.

Organon & Co.’s Promising Phase 3 Study on Tapinarof Cream for Pediatric Plaque Psoriasis

Organon & Co. is conducting a Phase 3 clinical study titled ‘A Phase 3 Study of Tapinarof for the Treatment of Plaque Psoriasis in Pediatric Subjects.’ The study aims to evaluate the effectiveness of tapinarof cream, 1%, in treating plaque psoriasis in children. This research is significant as it addresses a common skin condition affecting pediatric patients, potentially offering a new treatment option.

Organon CEO Resigns Amid Sales Practices Probe

On October 26, 2025, Kevin Ali resigned as CEO and board member of Organon due to an investigation into the company’s wholesaler sales practices. The Audit Committee’s investigation revealed improper sales practices involving Nexplanon, which allowed the company to meet revenue expectations during certain periods. As a result, Organon appointed Joseph Morrissey as Interim CEO and Carrie S. Cox as Executive Chair. The company is taking steps to improve financial controls and address material weaknesses, while initiating a search for a permanent CEO.

The most recent analyst rating on (OGN) stock is a Sell with a $14.00 price target. To see the full list of analyst forecasts on Organon stock, see the OGN Stock Forecast page.