One-glance verdict
Overvalued
$2.05 our estimate vs market $13.73
Wall Street consensus: $11.25 (448.0% higher than our fair-value estimate)
569% above our estimate, beyond the bull case
Fundamentals snapshot
Organon & Co.
OGN · NYQ · Healthcare · Drug Manufacturers - General
Current price
$13.73
52-week range
$5.69 - $13.79
Market cap
$3.61B
Balance sheet
Distressed
2.43x Stretched
Net debt $7.42B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Returns 24.0% on equity, ahead of 80% of its peers.
- Reward Free cash flow was positive in 7/10 years.
- Risk Stock trades 172.6% above its 5-year average P/E.
- Risk Operating margin compressed from 27.6% to 20.7% over 3 years.
What this company does
Organon & Co.
Organon is a healthcare company focused on women's health, making its money by selling products like the Nexplanon birth control implant and fertility treatments. A large part of its business also comes from a collection of older, established medicines for common conditions like high cholesterol (Zetia) and asthma (Singulair). This combination gives the company a specialized area for growth while also relying on steady income from drugs that are already widely used.
How the company got here
Organon started as a Dutch company in 1923 and was eventually acquired by the major drug company Merck. In 2021, Merck decided to spin off a collection of its products into a new, independent company, and it brought back the historic Organon name. This new Organon was formed with three main parts: Merck's portfolio of women's health drugs, a set of older, established medicines that are often past their patent protection, and a growing business in biosimilars (which are like generic versions of more complex biologic drugs). To start on its own, Organon took on a significant amount of debt from Merck.
What it actually does
Organon is a global healthcare company that makes and sells a wide variety of prescription medicines and medical devices. The company has a special focus on women's health, offering products for contraception (birth control), fertility, and other conditions that affect women. It also sells a portfolio of well-known, older drugs for things like high cholesterol, asthma, and skin conditions. Additionally, Organon provides biosimilars, which are more affordable versions of complex biologic drugs used to treat diseases like cancer and autoimmune disorders.
Women's Health
This is Organon's strategic priority and a key area for future growth. This segment, which makes up about a quarter of the company's revenue, includes products that help women manage their reproductive health. Key products include Nexplanon, a long-acting contraceptive implant, and various fertility treatments like Follistim AQ. The customers are doctors, clinics, and hospitals who prescribe these products to patients.
Established Brands
This is the largest part of the company, bringing in well over half of its revenue. It's a collection of over 60 older, well-known medicines that are often no longer protected by patents, meaning they face competition from generic drugs. This portfolio includes treatments for a wide range of conditions like high cholesterol (Zetia, Vytorin), asthma (Singulair), and allergies (Nasonex). Because these are mature products, this segment provides a steady stream of cash that the company can use to invest in other areas and pay down debt.
Biosimilars
This is a smaller but fast-growing slice of Organon's business. A biosimilar is a biologic medical product that is almost an identical copy of an original product that is manufactured by a different company. They are approved by the FDA and can provide more affordable treatment options for patients and healthcare systems. Organon's portfolio includes treatments for cancer and immune system disorders, such as Hadlima (a biosimilar to Humira) and Ontruzant (a biosimilar to Herceptin). The company often partners with other firms for development and then uses its global network to sell these products to hospitals and clinics.
What management is betting on now
Management's main focus is to become a global leader in women's health. They are investing in their key women's health products, like the contraceptive Nexplanon, and are actively looking to acquire or partner on new innovations in this area. The company is also focused on growing its Biosimilars business to help offset the expected sales decline from its older, Established Brands. A major financial priority is to use the cash generated from the Established Brands to pay down the debt the company started with, which increases its financial flexibility for future investments.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$99.00M
FY2024 Q4
$335.00M
FY2025 Q1
$43.00M
FY2025 Q2
$181.00M
FY2025 Q3
$218.00M
FY2025 Q4
$96.00M
FY2026 Q1
$188.00M
FY2026 Q2
$65.00M
Revenue
$1.56B
Net income
$108.00M
Diluted EPS
0.40
Operating cash flow
$107.00M
Free cash flow
$65.00M
Fetching…
Sources
Revenue
$1.46B
Net income
$146.00M
Diluted EPS
0.55
Operating cash flow
$225.00M
Free cash flow
$188.00M
Fetching…
Sources
Revenue
$1.51B
Net income
$-205.00M
Diluted EPS
-0.78
Operating cash flow
$141.00M
Free cash flow
$96.00M
Fetching…
Sources
Revenue
$1.60B
Net income
$160.00M
Diluted EPS
0.61
Operating cash flow
$264.00M
Free cash flow
$218.00M
Fetching…
Sources
Revenue
$1.59B
Net income
$145.00M
Diluted EPS
0.56
Operating cash flow
$220.00M
Free cash flow
$181.00M
Fetching…
Sources
Revenue
$1.51B
Net income
$87.00M
Diluted EPS
0.33
Operating cash flow
$75.00M
Free cash flow
$43.00M
Fetching…
Sources
Revenue
$1.59B
Net income
$109.00M
Diluted EPS
0.42
Operating cash flow
$390.00M
Free cash flow
$335.00M
Fetching…
Sources
Revenue
$1.58B
Net income
$359.00M
Diluted EPS
1.38
Operating cash flow
$141.00M
Free cash flow
$99.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $2.05 vs current price $13.73
Wall Street consensus is the average analyst price target: $11.25 (448.0% higher than our fair-value estimate).
Our most-likely fair value is $2.05 a share — about 85.0% below today's price of $13.73, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $7.4B. Interest coverage 2.4x.
Net debt
$7.42B
Interest coverage
2.43x
Organon & Co.'s profit covers its interest bill about 2.4 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
OGN
BASELINE
Organon & Co.
Total debt $8.55B Interest coverage 2.43x This is the baseline the peer rows are being compared against.
Total debt $13.62B Interest coverage 0.54x -78% vs OGN Carries about 4.5x less debt cushion than OGN.
Total debt $16.89B Interest coverage 4.31x +77% vs OGN Carries about 1.8x more debt cushion than OGN.
Total debt $20.78B Interest coverage 1.36x -44% vs OGN Carries about 1.8x less debt cushion than OGN.
Total debt $3.48B Interest coverage 1.92x -21% vs OGN Carries about 1.3x less debt cushion than OGN.
Total debt $750.91M Interest coverage 13.41x +451% vs OGN Carries about 5.5x more debt cushion than OGN.
What you should know
The case for and against OGN
3 Rewards
2 Risks
Rewards
-
Returns 24.0% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 7/10 years.
-
Trades at 17.6x P/E vs peer median 47.6x (63.0% cheaper).
Risks
-
Stock trades 172.6% above its 5-year average P/E.
-
Operating margin compressed from 27.6% to 20.7% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
17.60x
Forward P/E
3.80x
P/B
3.58x
P/S
0.59x
EV/EBITDA
7.05x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
53.4%
Operating margin
20.7%
Net margin
3.4%
ROE
24.0%
ROA
5.7%
Health
Liquidity and balance-sheet strength
Debt / equity
8.50x
Current ratio
1.95x
Quick ratio
1.00x
Total debt
$8.55B
Total cash
$1.13B
Growth
How the business has been compounding
Revenue TTM
$6.13B
Revenue 5Y CAGR
-0.4%
EPS TTM
0.78
EPS 5Y CAGR
-41.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$737.00M
Free CF TTM
$538.00M
FCF margin
8.8%
Dividend
Shareholder payout
Yield
0.6%
Payout ratio
10.3%
Last ex-div date
2026-08-14