Organon & Co.

Valuation Analysis

About the Company

Organon & Co. develops and delivers women health solutions through prescription therapies and medical devices in the United States, Europe, Canada, Japan, rest of the Asia Pacific, China, Latin America, the Middle East, Russia, Africa, and internationally. The company's women's health portfolio comprises contraception and fertility brands, such as Nexplanon, a long-acting reversible contraceptive; NuvaRing, a monthly vaginal contraceptive ring; Cerazette, Marvelon, and Mercilon to prevent pregnancy; Follistim AQ, which is used to promote development of ovarian follicles; Elonva, a follicle stimulant; Ganirelix acetate injection, an injectable antagonist; Jada for abnormal postpartum uterine bleeding and hemorrhage; and Xaciato for bacterial vaginosis. Its biosimilars portfolio consists of

Organon & Co. Stock at a Glance

Organon & Co. (OGN) is currently trading at $13.44 with a market capitalization of $3.5B. The trailing P/E ratio stands at 14.45x, with a forward P/E of 3.67x. The 52-week range spans from $5.69 to $13.49; the current price is 0.4% below the yearly high. Year-over-year revenue growth stands at -3.5%. The net profit margin stands at 3.99%.

💰 Dividend

Organon & Co. pays an annual dividend of $0.08 per share, representing a yield of 0.6%. The payout ratio stands at 8.6%.

📊 Analyst Rating

4 analysts rate Organon & Co. (OGN) on consensus: None. The average price target is $11.25, implying -16.29% from the current price. Analyst price targets range from $8.00 to $14.00.

Organon & Co.: The Investment Case in Detail

Organon & Co. (OGN) operates in the Healthcare — specifically Drug Manufacturers - General — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Earnings growth of 66.7% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. The combination of a 53.84% gross margin and 18.7% operating margin shows the business converts revenue into profit efficiently — a hallmark of competitive moat. Return on equity of 34.05% places management among the most capital-efficient operators in the public market — every euro of shareholder capital is working hard.

The Bear Case

Revenue is contracting at -3.5% year-over-year — until that trend reverses, valuation is exposed to further downgrades. With a net margin of just 3.99%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss. The debt-to-equity ratio of 948.95% is elevated, meaning the company relies heavily on creditors — refinancing terms will become more important than operational performance in the next economic downturn.

Valuation in Context

The EV/EBITDA multiple of 6.88x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The forward P/E of 3.67x is meaningfully below the trailing 14.45x — analysts expect earnings to step up; the next earnings release is the test.
• The share is trading at 99.4% of its 52-week range — a break above the recent high opens technical upside, a failure here often invites profit-taking.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to above-average price swings, elevated short interest (7.82%), higher leverage relative to equity.

Trading Data

💵 Dividend Info

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