Organogenesis Holdings (ORGO) AI Stock Analysis

• Market Cap: $409.74M
• Dividend Yield: N/A
• Average Volume (3M): 1.95M
• Price to Earnings (P/E): 928.6
• Beta (1Y): 1.60
• Revenue Growth: 5.35%
• EPS Growth: -432.51%
• Country: US
• Employees: 869
• Sector: Healthcare
• Sector Strength: 41
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.17
• Shares Outstanding: 126,853,540
• 10 Day Avg. Volume: 2,513,598
• 30 Day Avg. Volume: 1,950,790
• PEG Ratio: 3.75
• Price to Book (P/B): 2.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 136.67
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $6.00
• Price Target Upside: 85.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Organogenesis Holdings is currently facing substantial financial and operational challenges, with declining revenue and profitability, and negative cash flows. While the company has strong gross profit margins and low leverage, these are overshadowed by operational inefficiencies and liquidity concerns. The technical analysis indicates bearish sentiment and potential oversold conditions. Valuation metrics reflect challenges with profitability. Despite these challenges, the reaffirmed revenue guidance and strategic focus on product development could offer some long-term optimism.

Positive Factors

Financial Stability

The recent debt reduction by Organogenesis Holdings has contributed to a higher price target, reflecting improved financial stability.

Future Performance Confidence

ORGO raised FY24 guidance by $10M to $455.0M-$480.0M, indicating confidence in future performance.

Market Consolidation

Organogenesis is expected to benefit from market consolidation, which could lead to growth as business dynamics normalize.

Revenue Performance

Revenue in the fourth quarter exceeded expectations with a strong sales performance, indicating robust demand for Organogenesis's products.

Negative Factors

Guidance Challenges

The guidance for the first quarter is below consensus due to expected impacts from LCDs, suggesting potential short-term challenges.

Sales Risks

Despite good performance, LCDs and sales risks remain an overhang on shares, potentially limiting stock value growth.

Organogenesis Holdings Business Overview & Revenue Model

Company Description

Organogenesis Holdings Inc., a regenerative medicine company develops, manufactures, and commercializes solutions for the advanced wound care, and surgical and sports medicine markets in the United States. The company's advanced wound care products include Affinity, an amniotic membrane wound covering in which viable cells growth factors/cytokines, and ECM proteins in the native tissue are preserved; Apligraf, a bioengineered living cell therapy that produce spectrum of cytokines and growth factors; Dermagraft, a bioengineered product that produces human collagen, ECM, proteins, and cytokines; NuShield, a wound covering tissue includes both amnion and chorion membranes for spongy/intermediate layer intact; PuraPly , a antimicrobial barrier that enables conformability and fluid drainage; and Novachor, an amniotic membrane wound covering in which viable cells, growth factors/cytokines, and ECM proteins are preserved. Its surgical and sports medicine products comprise NuCel, a dehydrated placental tissue surgically applied to the target tissue to support native healing; ReNu, a cryopreserved suspension used to support healing of soft tissues; and FiberOS and OCMP used as a bone void filler primarily in orthopedic and neurosurgical applications. The company's pipeline products include PuraPly XT and PuraPly MZ to treat chronic, acute, and open wounds; PuraForce, a bioengineered porcine collagen surgical matrix for use in soft tissue reinforcement applications; and TransCyte, a bioengineered tissue for the treatment of partial thickness burns. It serves hospitals, wound care centers, government facilities, ambulatory service centers, and physician office through direct sales force and independent agencies. The company was founded in 1985 and is headquartered in Canton, Massachusetts.

How the Company Makes Money

Organogenesis Holdings generates revenue primarily through the sale of its advanced wound care and surgical biologics products. The company markets its products to hospitals, clinics, and other healthcare providers both in the United States and internationally. Key revenue streams include product sales in the advanced wound care segment, which encompasses treatments for chronic wounds such as diabetic foot ulcers and venous leg ulcers, and the surgical biologics segment, which includes products used in surgical procedures and sports medicine. Organogenesis also engages in strategic partnerships and collaborations to enhance its product offerings and expand its market reach. Additionally, the company invests in research and development to innovate and introduce new products, which can drive future revenue growth.

Organogenesis Holdings Financial Statement Overview

Summary

Organogenesis Holdings exhibits a mix of strengths and weaknesses across its financial statements. While gross profitability and asset management are positive, inconsistent revenue and cash flow performance pose concerns. The balance sheet's moderate leverage and stable equity base provide some reassurance, but operational efficiency needs improvement to enhance profitability.

Income Statement

Organogenesis Holdings has demonstrated a volatile revenue trajectory with fluctuations over the years. The gross profit margin remains healthy, indicating efficient production processes, but net profit margins have been inconsistent, turning negative recently. The company has struggled to maintain stable EBIT and EBITDA margins, particularly in the latest period, which reflects operational challenges.

Balance Sheet

The company's balance sheet shows moderate leverage with a debt-to-equity ratio that suggests manageable debt levels. The return on equity has been positive but decreased over time, indicating declining profitability for shareholders. The equity ratio reflects a solid asset base supported by equity, offering some financial stability.

Cash Flow

Free cash flow has been inconsistent, with a recent decrease reflecting higher capital expenditures relative to operating cash flows. The operating cash flow to net income ratio suggests that cash generation from operations is stable, but free cash flow conversion remains a challenge.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
482.04M	433.14M	450.89M	468.06M	338.30M
	Gross Profit
366.30M	326.66M	345.87M	353.86M	250.98M
	EBIT
-1.28M	12.53M	22.30M	72.92M	27.41M
	EBITDA
-1.28M	36.03M	40.32M	87.00M	37.23M
	Net Income Common Stockholders
861.00K	4.95M	15.53M	94.20M	17.23M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
135.57M	104.34M	102.48M	113.93M	84.39M
	Total Assets
497.89M	460.02M	449.36M	443.26M	294.49M
	Total Debt
43.31M	119.35M	123.79M	132.30M	84.77M
	Net Debt
-92.26M	15.51M	21.31M	18.37M	377.00K
	Total Liabilities
112.57M	181.36M	183.69M	201.22M	148.41M
	Stockholders Equity
262.90M	278.66M	265.67M	242.03M	146.08M
Cash Flow		Free Cash Flow
4.18M	6.55M	-9.04M	30.76M	-14.34M
	Operating Cash Flow
14.21M	30.92M	24.86M	61.98M	6.80M
	Investing Cash Flow
-10.03M	-24.36M	-33.90M	-31.22M	-24.83M
	Financing Cash Flow
27.64M	-5.50M	-2.20M	-1.04M	42.47M

Organogenesis Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.23
• 50DMA: Negative
• 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 ORGO, the sentiment is Negative. The current price of 3.23 is below the 20-day moving average (MA) of 4.26, below the 50-day MA of 4.45, and below the 200-day MA of 3.57, indicating a bearish trend. The MACD of -0.37 indicates Positive momentum. The RSI at 35.54 is Neutral, neither overbought nor oversold. The STOCH value of 8.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ORGO.

Organogenesis Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COLL	73 Outperform	$971.66M	24.91	19.23%	―	17.17%	-51.97%
PAHC	67 Neutral	$978.08M	30.71	11.86%	2.00%	19.12%	141.45%
HROW	61 Neutral	$1.04B	―	-37.23%	―	53.49%	33.18%
AVDL	59 Neutral	$904.51M	―	-34.65%	―	252.64%	85.10%
Sector *	52 Neutral	$5.19B	3.04	-44.64%	2.82%	16.45%	-0.53%
EOLS	43 Neutral	$625.41M	―	-949.46%	―	25.38%	15.00%
ORGO	42 Neutral	$409.74M	928.57	-4.92%	―	5.35%	-432.51%

Organogenesis Holdings Corporate Events

Organogenesis Highlights Strategic Focus in Investor Presentation

On March 27, 2025, Organogenesis Holdings Inc. released an investor presentation highlighting its strategic focus on addressing large unmet patient needs in chronic and acute wounds and osteoarthritis. The presentation outlines the company’s market opportunities and technological advancements, emphasizing its commitment to leading innovation in regenerative therapies. The company faces challenges such as competition and regulatory changes, but it continues to focus on enhancing its product offerings to maintain its competitive edge.