One-glance verdict
Within fair range
$0.75 our estimate vs market $1.46
Wall Street consensus: $2.00 (165.4% higher than our fair-value estimate)
94% above our estimate
Fundamentals snapshot
Organogenesis Holdings Inc.
ORGO · NCM · Healthcare · Drug Manufacturers - Specialty & Generic
Current price
$1.46
52-week range
$1.45 - $7.08
Market cap
$187.86M
Balance sheet
Healthy
36.18x Strong cushion
Net debt $20.85M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 3/10 years.
- Risk Operating margin compressed from 4.9% to -119.3% over 3 years.
- Risk Return on equity was -25.9% last year — the company lost money on shareholders' equity.
What this company does
Organogenesis Holdings Inc.
Organogenesis is a medical company that creates advanced products, like skin substitutes and tissue grafts, to help the body heal serious wounds from conditions like diabetes, surgery, or burns. It makes most of its money by selling these specialized treatments directly to hospitals, wound care centers, and doctors' offices. This matters because an aging population and an increase in chronic diseases could lead to more patients needing this type of advanced wound care in the future.
How the company got here
Organogenesis began in 1985, spinning out of research from the Massachusetts Institute of Technology (MIT). [9, 14] A major turning point was receiving FDA approval (the U.S. government's green light for medical products) for its Apligraf product in 1998, which is used to treat serious skin wounds. [5, 9] Over the years, the company grew by acquiring other products, like Dermagraft in 2014, to treat foot ulcers common in people with diabetes. [5, 14] A key strategic move came in 2017 when it bought a company called NuTech Medical, which expanded its business beyond wound care into products used in surgery and for sports injuries. [9, 14]
What it actually does
Organogenesis is a regenerative medicine company, which means it creates products that help the body heal and regrow its own tissues. [2, 4, 15] Think of it like providing a special, advanced bandage or scaffold that encourages your body's natural repair processes to work better, especially for injuries that won't heal on their own. [15] Their products are used by doctors in hospitals and clinics to treat everything from chronic leg and foot wounds to burns and injuries that happen during surgery. [11, 25] Instead of traditional drugs, their solutions often use living cells or tissues from sources like placentas to kickstart healing. [4, 10]
Advanced Wound Care
This is the company's largest and main business, making up the vast majority of its sales. [7, 17] This division sells highly advanced skin substitutes and wound coverings for serious, hard-to-heal wounds like diabetic foot ulcers and venous leg ulcers (sores that can happen when leg veins don't work well). [2, 13] Hospitals and specialized wound centers pay for products like Apligraf and Dermagraft, which are made from living cells, to help close these persistent wounds. [2, 15] This part of the business focuses on giving doctors tools to heal injuries that don't respond to simple bandages or creams.
Surgical & Sports Medicine
This is a smaller but important part of the company that provides products used inside the body during operations. [4, 17, 19] Surgeons pay for these materials to help with things like reinforcing repaired tendons or filling in gaps in bone during orthopedic procedures. [10, 11, 25] For example, a product might be used to create a protective barrier between tissues to prevent scarring after surgery. [10] This business line helps the company expand beyond just skin wounds and into the operating room, where its regenerative technology can be used for a different set of medical problems.
What management is betting on now
The company's main strategy is to keep its strong position in the advanced wound care market while growing its Surgical & Sports Medicine business. [4] This approach helps diversify the company, making it less reliant on just one area of healthcare. Management is also focused on getting more clinical evidence (data from studies that show a product works) to support the use of its products. [4] They are also developing new products, such as a potential treatment for symptoms of knee osteoarthritis, which could open up a large new market for the company if approved. [19]
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$6.13M
FY2024 Q4
$7.58M
FY2025 Q1
$-23.56M
FY2025 Q2
$-36.51M
FY2025 Q3
$844.00K
FY2025 Q4
$34.77M
FY2026 Q1
$17.98M
FY2026 Q2
$-32.75M
Revenue
$43.76M
Net income
$-96.27M
Diluted EPS
-0.77
Operating cash flow
$-31.65M
Free cash flow
$-32.75M
Fetching…
Sources
Revenue
$37.23M
Net income
$-53.16M
Diluted EPS
-0.44
Operating cash flow
$21.13M
Free cash flow
$17.98M
Fetching…
Sources
Revenue
$225.61M
Net income
$43.70M
Diluted EPS
0.31
Operating cash flow
$39.42M
Free cash flow
$34.77M
Fetching…
Sources
Revenue
$150.86M
Net income
$21.57M
Diluted EPS
0.11
Operating cash flow
$3.08M
Free cash flow
$844.00K
Fetching…
Sources
Revenue
$101.00M
Net income
$-9.39M
Diluted EPS
-0.10
Operating cash flow
$-32.87M
Free cash flow
$-36.51M
Fetching…
Sources
Revenue
$86.69M
Net income
$-18.84M
Diluted EPS
-0.17
Operating cash flow
$-19.93M
Free cash flow
$-23.56M
Fetching…
Sources
Revenue
$126.66M
Net income
$7.67M
Diluted EPS
0.05
Operating cash flow
$10.94M
Free cash flow
$7.58M
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Sources
Revenue
$115.18M
Net income
$12.33M
Diluted EPS
0.09
Operating cash flow
$8.70M
Free cash flow
$6.13M
Fetching…
Sources
Is it cheap or expensive?
Fair value $0.75 vs current price $1.46
Wall Street consensus is the average analyst price target: $2.00 (165.4% higher than our fair-value estimate).
Our most-likely fair value is $0.75 a share — about 48.4% away from today's price of $1.46, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net debt $20.9M. Interest coverage 36.2x.
Net debt
$20.85M
Interest coverage
36.18x
Organogenesis Holdings Inc.'s profit covers its interest bill about 36.2 times over. which is stronger than every peer shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
ORGO
BASELINE
Organogenesis Holdings Inc.
Total debt $66.95M Interest coverage 36.18x This is the baseline the peer rows are being compared against.
Total debt $8.61M Interest coverage -66.52x -100% vs ORGO This peer has almost no interest-payment cushion compared with ORGO.
What you should know
The case for and against ORGO
1 Reward
2 Risks
Rewards
-
Free cash flow was positive in 3/10 years.
Risks
-
Operating margin compressed from 4.9% to -119.3% over 3 years.
-
Return on equity was -25.9% last year — the company lost money on shareholders' equity.
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)
—
Forward P/E
-4.71x
P/B
1.27x
P/S
0.41x
EV/EBITDA
-36.46x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
71.5%
Operating margin
-119.3%
Net margin
-18.4%
ROE
-25.9%
ROA
-4.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.23x
Current ratio
3.52x
Quick ratio
2.58x
Total debt
$66.95M
Total cash
$46.10M
Growth
How the business has been compounding
Revenue TTM
$457.45M
Revenue 5Y CAGR
4.8%
EPS TTM
-0.79
EPS 5Y CAGR
7.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$31.97M
Free CF TTM
$-24.46M
FCF margin
-5.3%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—