One-glance verdict
Within fair range
$12.30 our estimate vs market $13.85
Wall Street consensus: $10.33 (-16.0% lower than our fair-value estimate)
13% above our estimate
Fundamentals snapshot
Organon & Co.
OGN · NYQ · Healthcare · Drug Manufacturers - General
Current price
$13.85
52-week range
$5.69 - $13.88
Market cap
$3.64B
Balance sheet
Distressed
2.43x Stretched
Net debt $7.10B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Returns 20.3% on equity, ahead of 83% of its peers.
- Reward Free cash flow was positive in 7/10 years.
- Risk Stock trades 174.9% above its 5-year average P/E.
- Risk Operating margin compressed from 27.6% to 23.2% over 3 years.
What this company does
Organon & Co.
Organon & Co. focuses on women's health, selling medicines and devices like birth control and treatments for postpartum bleeding, with their main money coming from these women's health products. This matters because it shows their core business is dedicated to a specific area of healthcare, making their financial performance largely tied to how well these women's health offerings do in the market.
How the company got here
Organon & Co. has a long history, tracing its roots back to 1923. It was originally part of Merck & Co. (known as MSD outside the U.S. and Canada) before being spun off as an independent company in June 2021. This separation allowed Organon to focus specifically on women's health and a portfolio of established medicines and biosimilars, aiming to address unmet needs in these areas. The company was established with a mission to improve the health and well-being of women throughout their lives.
What it actually does
Organon & Co. is a healthcare company dedicated to improving women's health. They develop and provide a range of prescription medicines and medical devices. Think of them as creating solutions that help women with issues like preventing pregnancy, managing fertility, and addressing conditions like postpartum bleeding. Beyond women's health, they also offer treatments for various other conditions, including asthma, allergies, and bone health, as well as biosimilar drugs that are highly similar to existing biologic medicines.
Women's Health
This is Organon's core focus, offering a variety of products designed for women's reproductive and overall health. Key offerings include long-acting reversible contraceptives like Nexplanon and monthly options like NuvaRing, which help prevent pregnancy. They also provide treatments to support fertility and manage postpartum uterine bleeding. This segment is central to Organon's identity and strategy, aiming to meet diverse needs across a woman's life stages.
Biosimilars
Organon also has a significant business in biosimilars. These are essentially highly similar versions of existing biologic medicines, which are complex drugs made from living organisms. By offering biosimilars, Organon aims to provide more affordable alternatives to expensive biologic treatments for conditions like autoimmune diseases and cancer. This part of the business contributes to making advanced therapies more accessible to a wider patient population.
Established Medicines
This segment encompasses a broad portfolio of well-known medicines that Organon offers. These include treatments for conditions such as high cholesterol, hypertension (high blood pressure), asthma, allergic rhinitis, and bone health. The company also provides products for dermatology and benign prostatic hyperplasia. These are often mature products that continue to serve important patient needs and generate consistent revenue for the company.
What management is betting on now
Organon's management is focused on growing its women's health portfolio and expanding its reach in emerging markets. They are investing in new treatments and innovative solutions to address unmet needs in women's health. Additionally, the company is working to expand its biosimilars business, aiming to bring more affordable biologic treatment options to patients. A key priority is also to leverage its established medicines portfolio to drive sustainable growth and profitability.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
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
FY2026 Q3
$326.00M
Revenue
$1.57B
Net income
$164.00M
Diluted EPS
0.60
Operating cash flow
$370.00M
Free cash flow
$326.00M
Fetching…
Sources
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
Is it cheap or expensive?
Fair value $12.30 vs current price $13.85
Wall Street consensus is the average analyst price target: $10.33 (-16.0% lower than our fair-value estimate).
Our most-likely fair value is $12.30 a share — about 11.2% away from today's price of $13.85, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $7.1B. Interest coverage 2.4x.
Net debt
$7.10B
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 $13.58B Interest coverage 0.54x -78% vs OGN Carries about 4.5x less debt cushion than OGN.
Total debt $17.00B Interest coverage 4.31x +77% vs OGN Carries about 1.8x more debt cushion than OGN.
Total debt $20.71B Interest coverage 1.36x -44% vs OGN Carries about 1.8x less debt cushion than OGN.
Total debt $3.46B Interest coverage 1.92x -21% vs OGN Carries about 1.3x less debt cushion than OGN.
Total debt $769.68M 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 20.3% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 7/10 years.
-
Trades at 17.8x P/E vs peer median 70.9x (74.9% cheaper).
Risks
-
Stock trades 174.9% above its 5-year average P/E.
-
Operating margin compressed from 27.6% to 23.2% 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)
17.76x
Forward P/E
3.80x
P/B
3.05x
P/S
0.60x
EV/EBITDA
6.93x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
53.6%
Operating margin
23.2%
Net margin
3.5%
ROE
20.3%
ROA
5.6%
Health
Liquidity and balance-sheet strength
Debt / equity
7.17x
Current ratio
2.02x
Quick ratio
1.11x
Total debt
$8.55B
Total cash
$1.46B
Growth
How the business has been compounding
Revenue TTM
$6.10B
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
$843.00M
Free CF TTM
$538.00M
FCF margin
8.8%
Dividend
Shareholder payout
Yield
0.6%
Payout ratio
10.3%
Last ex-div date
2026-11-09