📊 OGN Key Takeaways
Is Organon & Co. (OGN) a Good Investment?
Organon faces significant financial stress with a dangerously high debt-to-equity ratio of 11.49x and interest coverage of only 0.8x, indicating the company cannot cover interest expenses from operating income. The 78.4% year-over-year decline in net income combined with declining revenues suggests fundamental business deterioration that is not offset by reasonable profitability margins.
Organon’s fundamentals show a business generating positive gross profit and free cash flow, but the overall earnings profile has deteriorated sharply, with revenue down 2.9% and net income down 78.4% year over year. Financial risk is elevated because leverage is extremely high, equity is very thin, and interest coverage of 0.8x indicates operating income is not comfortably covering financing costs. Unless profitability and coverage recover materially, the balance sheet leaves limited room for error.
Why Buy Organon & Co. Stock? OGN Key Strengths
- Solid gross margin of 53.3% demonstrates pricing power and cost management in pharmaceutical operations
- Positive free cash flow of $538M provides some financial flexibility despite leverage concerns
- Adequate liquidity with current ratio of 1.82x and quick ratio of 1.23x for near-term obligations
- Positive free cash flow of $538M and an 8.7% FCF margin provide some internal funding capacity
- Gross margin of 53.3% shows the core portfolio still has meaningful product-level profitability
- Current ratio of 1.82x and quick ratio of 1.23x indicate near-term liquidity is adequate
OGN Stock Risks: Organon & Co. Investment Risks
- Critical debt-to-equity ratio of 11.49x indicates extreme financial leverage with minimal equity cushion
- Interest coverage ratio of 0.8x means operating income cannot cover interest payments, raising default risk concerns
- Severe net income decline of 78.4% YoY combined with revenue contraction of 2.9% signals operational distress and potential market share loss
- Low net margin of 3.0% and ROA of 1.5% show poor returns on total assets despite reasonable operating margins
- Net income fell 78.4% year over year, signaling severe earnings pressure and weak profit conversion
- Long-term debt of $8.64B against only $752M of equity creates very high balance-sheet leverage
- Interest coverage of 0.8x suggests debt service is straining operating performance
Key Metrics to Watch
- Interest coverage ratio trend - critical improvement needed above 1.5x to ensure debt sustainability
- Operating cash flow sustainability - must remain above $600M to service debt and maintain operations
- Debt-to-equity reduction path - company needs strategic deleveraging or risk covenant violations
- Revenue stabilization - current -2.9% YoY decline must reverse to demonstrate business viability
- Operating margin and net income recovery
- Interest coverage and net debt reduction
Organon & Co. (OGN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Organon & Co. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
OGN Profit Margin, ROE & Profitability Analysis
OGN vs Healthcare Sector: How Organon & Co. Compares
How Organon & Co. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Organon & Co. Stock Overvalued? OGN Valuation Analysis 2026
Based on fundamental analysis, Organon & Co. has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Organon & Co. Balance Sheet: OGN Debt, Cash & Liquidity
OGN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Organon & Co.'s revenue has declined by 18% over the 5-year period, indicating business contraction. The most recent EPS of $3.99 reflects profitable operations.
OGN Revenue Growth, EPS Growth & YoY Performance
OGN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.6B | $160.0M | $0.61 |
| Q2 2025 | $1.6B | $145.0M | $0.56 |
| Q1 2025 | $1.5B | $87.0M | $0.33 |
| Q3 2024 | $1.5B | $58.0M | $0.23 |
| Q2 2024 | $1.6B | $195.0M | $0.75 |
| Q1 2024 | $1.5B | $177.0M | $0.69 |
| Q3 2023 | $1.5B | $58.0M | $0.23 |
| Q2 2023 | $1.6B | $234.0M | $0.92 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Organon & Co. Dividends, Buybacks & Capital Allocation
OGN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Organon & Co. (CIK: 0001821825)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775161569.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775161114.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775161029.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775160890.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775160787.xml | View → |
❓ Frequently Asked Questions about OGN
What is the AI rating for OGN?
Organon & Co. (OGN) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (STRONG SELL) with 83% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are OGN's key strengths?
Claude: Solid gross margin of 53.3% demonstrates pricing power and cost management in pharmaceutical operations. Positive free cash flow of $538M provides some financial flexibility despite leverage concerns. ChatGPT: Positive free cash flow of $538M and an 8.7% FCF margin provide some internal funding capacity. Gross margin of 53.3% shows the core portfolio still has meaningful product-level profitability.
What are the risks of investing in OGN?
Claude: Critical debt-to-equity ratio of 11.49x indicates extreme financial leverage with minimal equity cushion. Interest coverage ratio of 0.8x means operating income cannot cover interest payments, raising default risk concerns. ChatGPT: Net income fell 78.4% year over year, signaling severe earnings pressure and weak profit conversion. Long-term debt of $8.64B against only $752M of equity creates very high balance-sheet leverage.
What is OGN's revenue and growth?
Organon & Co. reported revenue of $6.2B.
Does OGN pay dividends?
Organon & Co. pays dividends, with $88.0M distributed to shareholders in the trailing twelve months.
Where can I find OGN SEC filings?
Official SEC filings for Organon & Co. (CIK: 0001821825) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is OGN's EPS?
Organon & Co. has a diluted EPS of $0.72.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is OGN a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Organon & Co. has a SELL rating with 83% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is OGN stock overvalued or undervalued?
Valuation metrics for OGN: ROE of 24.9% (sector avg: 15%), net margin of 3.0% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy OGN stock in 2026?
Our dual AI analysis gives Organon & Co. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is OGN's free cash flow?
Organon & Co.'s operating cash flow is $700.0M, with capital expenditures of $162.0M. FCF margin is 8.7%.
How does OGN compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 3.0% (avg: 12%), ROE 24.9% (avg: 15%), current ratio 1.82 (avg: 2).
Is Organon & Co. carrying too much debt?
OGN has a debt-to-equity ratio of 11.49x, which is above the Healthcare sector average of 0.6x. However, the current ratio of 1.82 suggests adequate short-term liquidity.