Organon & Co.

Health Care
Biotechnology: Pharmaceutical Preparations
www.organon.com

Earnings Score
Safety Score

Market Cap $3.88B
PE 3
Debt $8.76B
Cash $763.00M
EV $11.88B
FCF $747.00M

Earnings

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Sales & Net Margins

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Earnings	$1.30B
EBIT	$782.00M
ROE	264%
ROA	6%
FCF	$747.00M
Equity	$493.00M
Growth Stability	41%
PE	2.98
PEG	-0.16
PB	7.88
P/FCF	5.2
P/S	0.61
Price/Cash	0.2
Debt/Equity	17.77
Debt/FCF	11.73
Net Margins	16%
Gross Margins	58%
Op. Margins	12%
Earnings CAGR	-18%
Sales Growth YoY	4%
Sales Growth QoQ	-2%
Sales CAGR	-0%
FCF CAGR	-34%
Equity CAGR	-24%
Earnings Stability	-0.25
Earnings Growth YoY	519%

Earnings Growth QoQ	84%
Earnings CAGR 5Y	-18%
Sales CAGR 5Y	-0%
FCF CAGR 5Y	-34%
Equity CAGR 5Y	-24%
Earnings CAGR 3Y	0%
Sales CAGR 3Y	0%
FCF CAGR 3Y	-15%
Market Cap	$3.88B
Revenue	$6.41B
Dividend Yield	8%
Payout Ratio	23%
Assets	$12.75B
Total Debt	$8.76B
Cash	$763.00M
Shares Outstanding	256.8M
EV	11.88B
Earnings Score	6%
Safety Score	30%
Working Capital	1.97B
Current Ratio	1.7
Gross Profit	$3.73B
Shares Growth 3y	0%
Equity Growth QoQ	242%
Equity Growth YoY	-184%

Assets & ROA

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Stockholders Equity & ROE

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Organon & Co is a science-based global pharmaceutical company that develops and delivers health solutions through a portfolio of prescription therapies within women's health, biosimilars, and established brands. Geographically, it derives a majority of revenue from Europe and Canada.

SEC Filings

Direct access to Organon & Co. (OGN) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Organon & Co. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Organon & Co. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -18%

Stability -25%

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Organon & Co. Discounted Cash Flow

Fully customizable DCF calculator online for Organon & Co..

Years

Calculation mode

= $1.2B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$747M	$495M	$328M	$217M	$144M	$96M	$63M	$42M	$28M	$18M	$12M	$122M
DCF		$450M	$271M	$163M	$98M	$59M	$36M	$22M	$13M	$7.8M	$4.7M	$47M
Value	$1.2B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	41%	33%	21%	15%	16%	16%
ROA	-	27%	14%	10%	6%	6%
ROE	-	39%	-90%	-103%	-1K%	264%

Good Net Margins (15.69%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	0	4.65	13.48	16	11.73
Debt over Equity	-	0	-6.06	-10	-125.27	17.77
Growth Stability	-	-	-	41%	69%	41%

Bad Debt/FCF ratio (11.73)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Bad Debt/Equity ratio (17.77)

The company is overleveraged and has a bad balance between equity and debt.

Bad Graham’s Stability (41%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-16%	-3%	-2%	1%	-0%
Earnings YoY growth	-	-33%	-37%	-32%	12%	-18%
Equity YoY growth	-	-22%	-127%	-41%	-92%	-24%
FCF YoY growth	-	-31%	-3%	-66%	-17%	-34%