Organon (OGN) AI Stock Analysis

• Market Cap: $2.38B
• Dividend Yield: 9.01%
• Average Volume (3M): 3.73M
• Price to Earnings (P/E): 3.4
• Beta (1Y): 0.34
• Revenue Growth: -1.02%
• EPS Growth: -30.57%
• Country: US
• Employees: 10,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 1.00
• Shares Outstanding: 259,965,580
• 10 Day Avg. Volume: 3,647,712
• 30 Day Avg. Volume: 3,726,134
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 4.54
• Enterprise Value/Revenue: 1.72
• Enterprise Value/Gross Profit: 3.06
• Enterprise Value/Ebitda: 7.13
• 1Y Price Target: $9.67
• Price Target Upside: 36.97% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 48 Neutral
• Price Target: $7.00 ▼(-0.85% Downside)

Organon's overall stock score is primarily impacted by its financial challenges, including declining revenue and high leverage. Technical analysis indicates a bearish trend, further weighing on the score. However, the stock's valuation appears attractive with a low P/E ratio and high dividend yield, providing some support. The earnings call provided a mixed outlook, with strategic debt repayment and guidance raise as positives.

Positive Factors

Debt Repayment

Significant debt repayment demonstrates financial discipline and improves leverage ratios, enhancing long-term financial stability.

Growth in Women's Health and Biosimilars

Growth in key segments like Women's Health and Biosimilars indicates strong market demand and potential for sustained revenue expansion.

Vtama Performance

Vtama's strong revenue growth and increasing prescriber base highlight successful product adoption and potential for future market penetration.

Negative Factors

Revenue Decline

Declining revenue, impacted by loss of exclusivity, poses a challenge to maintaining growth and profitability in a competitive market.

High Leverage

High leverage limits financial flexibility and increases risk, necessitating careful management to avoid potential financial instability.

Endometriosis Program Discontinuation

Discontinuation of the endometriosis program reflects challenges in R&D, potentially impacting future growth and innovation in this segment.

Organon Business Overview & Revenue Model

Company Description

Organon (OGN) is a global healthcare company focused on women's health and other critical health issues. Established as a standalone entity from Merck & Co., Organon specializes in developing and delivering innovative medicines and solutions that address the unique health needs of women throughout their life stages. The company offers a diverse portfolio of products, including contraceptives, hormone replacement therapies, and treatments for conditions such as infertility, endometriosis, and osteoporosis.

How the Company Makes Money

Organon generates revenue primarily through the sale of its pharmaceutical products, which are designed to address various health issues particularly affecting women. Key revenue streams include sales from hormonal contraceptives, menopause therapies, and specialty medications for women's health conditions. Additionally, the company may engage in collaborations and partnerships with other pharmaceutical firms or healthcare organizations to co-develop products, which can also contribute to its earnings. By focusing on a niche market with specific health needs, Organon aims to build a loyal customer base that drives consistent revenue growth.

Organon Financial Statement Overview

Summary

Organon is facing financial challenges with declining revenue and profitability, high leverage, and reduced cash flow generation. The company needs to address its high debt levels and improve operational efficiency to stabilize its financial position.

Income Statement

Organon's income statement shows a significant decline in revenue with a TTM revenue growth rate of -25.51%. Gross profit margin is relatively stable at 57.18%, but net profit margin has decreased to 11.92%. EBIT and EBITDA margins have also declined, indicating reduced operational efficiency. The company faces challenges in maintaining revenue and profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 16.52, indicating significant leverage. Return on equity is low at 1.82%, reflecting limited profitability relative to shareholder equity. The equity ratio is weak, suggesting potential financial instability. The company needs to address its high leverage to improve financial health.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by -44.84% TTM, indicating reduced cash generation. The operating cash flow to net income ratio is 0.36, suggesting moderate cash conversion efficiency. The free cash flow to net income ratio is 0.62, which is decent but declining. The company needs to enhance its cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.28B	6.40B	6.26B	6.17B	6.30B	8.10B
Gross Profit	3.53B	3.71B	3.75B	3.88B	3.92B	4.75B
EBITDA	1.52B	1.61B	1.44B	1.69B	1.81B	2.99B
Net Income	700.00M	864.00M	1.02B	917.00M	1.35B	2.16B
Balance Sheet
Total Assets	13.50B	13.10B	12.06B	10.96B	10.68B	10.43B
Cash, Cash Equivalents and Short-Term Investments	599.00M	675.00M	693.00M	706.00M	737.00M	500.00M
Total Debt	8.90B	8.88B	8.76B	8.91B	9.13B	31.00M
Total Liabilities	12.77B	12.63B	12.13B	11.85B	12.19B	11.25B
Stockholders Equity	733.00M	472.00M	-70.00M	-892.00M	-1.51B	-820.00M
Cash Flow
Free Cash Flow	323.22M	588.00M	538.00M	431.00M	1.97B	1.91B
Operating Cash Flow	531.29M	939.00M	799.00M	858.00M	2.46B	2.19B
Investing Cash Flow	-371.21M	-513.00M	-260.00M	-420.00M	-481.00M	-258.00M
Financing Cash Flow	-160.30M	-368.00M	-569.00M	-433.00M	-1.33B	-2.17B

Organon Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 7.06 is below the 20-day moving average (MA) of 9.53, below the 50-day MA of 9.82, and below the 200-day MA of 11.37, indicating a bearish trend. The MACD of -0.64 indicates Positive momentum. The RSI at 15.45 is Positive, neither overbought nor oversold. The STOCH value of 17.15 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	―	$217.38B	13.42	35.44%	3.72%	2.00%	20.01%
SNY	―	$123.89B	12.70	8.39%	4.33%	-9.32%	120.62%
GSK	―	$87.65B	20.12	23.04%	3.77%	3.46%	-13.29%
GRFS	―	$8.04B	19.52	5.41%	1.52%	10.05%	98.22%
BMY	―	$87.16B	17.28	29.31%	5.79%	2.57%	―
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
OGN	―	$2.38B	3.40	159.64%	9.01%	-1.02%	-30.57%

Organon Corporate Events

Organon & Co.’s Promising Phase 3 Study on Tapinarof Cream for Pediatric Plaque Psoriasis

Organon & Co. is conducting a Phase 3 clinical study titled ‘A Phase 3 Study of Tapinarof for the Treatment of Plaque Psoriasis in Pediatric Subjects.’ The study aims to evaluate the effectiveness of tapinarof cream, 1%, in treating plaque psoriasis in children. This research is significant as it addresses a common skin condition affecting pediatric patients, potentially offering a new treatment option.

Organon CEO Resigns Amid Sales Practices Probe

On October 26, 2025, Kevin Ali resigned as CEO and board member of Organon due to an investigation into the company’s wholesaler sales practices. The Audit Committee’s investigation revealed improper sales practices involving Nexplanon, which allowed the company to meet revenue expectations during certain periods. As a result, Organon appointed Joseph Morrissey as Interim CEO and Carrie S. Cox as Executive Chair. The company is taking steps to improve financial controls and address material weaknesses, while initiating a search for a permanent CEO.

The most recent analyst rating on (OGN) stock is a Sell with a $14.00 price target. To see the full list of analyst forecasts on Organon stock, see the OGN Stock Forecast page.

Organon & Co. Reports Q2 2025 Financial Results

Organon & Co. is a global healthcare company focused on delivering impactful medicines and solutions, particularly in Women’s Health and General Medicines, including biosimilars, with a commitment to advancing access, affordability, and innovation in healthcare across over 140 markets worldwide.

Organon & Co. Earnings Call: Resilience Amid Challenges

Organon & Co. recently held its earnings call, revealing a company that continues to demonstrate strong financial discipline and growth in key areas such as Women’s Health and Biosimilars. Despite facing challenges like the loss of exclusivity for Atozet and funding issues impacting Nexplanon sales, Organon has shown resilience through strategic debt repayment and investments, suggesting a stable outlook for the future.

Organon Reports Q2 2025 Financial Results and Guidance

Organon reported its financial results for the second quarter of 2025, with a revenue of $1.594 billion, a slight decrease from the previous year. The company achieved a net income of $145 million and repaid $345 million of long-term debt, aiming for a net debt to Adjusted EBITDA ratio of less than 4.0x by year-end. Organon raised its full-year revenue guidance to between $6.275 billion and $6.375 billion, while maintaining its Adjusted EBITDA margin guidance. The quarter saw growth in women’s health and biosimilars, offset by declines in established brands due to the loss of exclusivity in key markets.

The most recent analyst rating on (OGN) stock is a Sell with a $20.00 price target. To see the full list of analyst forecasts on Organon stock, see the OGN Stock Forecast page.