Organon (OGN) AI Stock Analysis

• Market Cap: $2.13B
• Dividend Yield: 4.8%
• Average Volume (3M): 5.35M
• Price to Earnings (P/E): 4.3
• Beta (1Y): 0.38
• 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: 6,676,215
• 30 Day Avg. Volume: 5,346,371
• 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: 4.80
• Enterprise Value/Revenue: 1.62
• Enterprise Value/Gross Profit: 2.95
• Enterprise Value/Ebitda: 6.50
• 1Y Price Target: $9.38
• Price Target Upside: 14.33% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $8.50 ▲(3.66% Upside)

The score is held back primarily by high leverage and declining profitability, plus mixed outlook signals from the earnings call (lower revenue guidance and segment declines). These are partially offset by an inexpensive valuation (low P/E and a 3.59% dividend yield) and technically strong but overextended momentum (very high RSI/Stochastic).

Positive Factors

Free cash flow generation

Sustained, material free cash flow ($813M YTD) strengthens Organon’s ability to deleverage, fund R&D and product launches, sustain dividends and execute strategic divestitures. Reliable cash generation underpins multi-quarter financial flexibility during a multi-year turnaround.

Biosimilars growth and diversification

Robust biosimilars momentum (Hadlima +63% ex-FX, new denosumab approval) diversifies revenue away from legacy women’s-health products, brings recurring tender and institutional channels, and creates durable international growth levers less tied to U.S. policy cycles.

Operational margin resilience

A healthy adjusted EBITDA margin (~32%) indicates effective cost controls and manufacturing/SG&A leverage. Persistent margin strength supports cash conversion and interest coverage, giving management runway to invest in growth and pursue deleveraging without immediate dilutive measures.

Negative Factors

Very high financial leverage

Extremely elevated leverage (D/E ~9.74, equity ratio ~6.7%) creates sustained refinancing and interest-rate vulnerability. With projected interest expense (~$510M in 2025 guidance), high debt constrains capital allocation, slows M&A optionality and prolongs the timeline to normalize balance sheet risk.

Declining profitability

Net margin compression (to ~7.95% from 13.49%) despite solid gross margin signals rising operating costs, pricing pressure or mix shifts. Persistent margin decline reduces retained earnings, slows equity rebuilding and limits reinvestment capacity over the coming quarters.

Key product headwinds and governance risk

A 50% drop in U.S. Nexplanon sales reflects structural policy and public-sector funding headwinds for a core franchise. Coupled with an internal sales-practices probe, remediation and related leadership changes, this undermines trust with payors/customers and creates enduring execution and regulatory risk.

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 include prescription medications and over-the-counter solutions targeting women's health. Key revenue streams include hormonal contraceptives, fertility drugs, and treatments for menopause-related conditions. The company also benefits from partnerships and collaborations with healthcare providers and other pharmaceutical companies, enhancing its product offerings and market reach. Additionally, Organon focuses on expanding its portfolio through research and development, aiming to introduce new therapies that align with its mission to serve women's health needs. The company's strategic initiatives to improve accessibility and affordability for patients further contribute to its earnings potential.

Organon Financial Statement Overview

Summary

Mixed fundamentals: strong TTM revenue growth (31.8%) and improving free cash flow growth (17.43%), but profitability is weakening (net margin down to 7.95% from 13.49% in 2024) and leverage remains very high (debt-to-equity 9.74; equity ratio 6.69%), which elevates financial risk.

Income Statement

Organon's income statement shows a mixed performance. The TTM gross profit margin is solid at 55.04%, but has decreased from previous years, indicating potential cost pressures. The net profit margin has also declined to 7.95% from 13.49% in 2024, suggesting reduced profitability. Revenue growth is positive at 31.8% TTM, but this is largely due to a rebound from a previous decline. Overall, while revenue growth is strong, declining margins are a concern.

Balance Sheet

The balance sheet reveals significant financial leverage, with a high debt-to-equity ratio of 9.74 TTM, although improved from 18.81 in 2024. Return on equity is strong at 75.54% TTM, but this is partly due to the low equity base. The equity ratio remains low at 6.69%, indicating high reliance on debt financing. The company faces potential risks from high leverage, despite some improvement in equity position.

Cash Flow

Cash flow analysis shows a moderate performance. Free cash flow growth is positive at 17.43% TTM, indicating improved cash generation. However, the operating cash flow to net income ratio is low at 0.35, suggesting limited cash conversion efficiency. The free cash flow to net income ratio is 0.50, indicating that not all earnings are translating into free cash flow. While cash flow generation is improving, efficiency remains a concern.

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: Negative
• Last Price: 8.20
• 50DMA: Positive
• 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 8.2 is below the 20-day moving average (MA) of 8.70, above the 50-day MA of 7.80, and below the 200-day MA of 9.03, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 42.37 is Neutral, neither overbought nor oversold. The STOCH value of 10.88 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
MRK	78 Outperform	$281.39B	15.57	39.51%	3.12%	1.59%	58.02%
GSK	77 Outperform	$106.45B	14.76	35.61%	3.41%	5.97%	128.66%
BMY	73 Outperform	$113.78B	18.87	33.84%	4.84%	1.26%	―
GRFS	72 Outperform	$7.88B	15.31	6.93%	1.56%	9.45%	167.00%
SNY	69 Neutral	$115.24B	13.08	6.76%	4.58%	-9.32%	120.62%
OGN	59 Neutral	$2.13B	4.26	71.62%	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 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.