📊 OGN Key Takeaways
Is Organon & Co. (OGN) a Good Investment?
Organon faces severe financial distress driven by extreme leverage (9.49x debt-to-equity) and deteriorating fundamentals, with declining revenue (-2.9% YoY) and collapsing EPS (-78.4% YoY) compounded by dangerously weak interest coverage of only 1.9x. While the company maintains positive free cash flow and reasonable operational margins, the unsustainable capital structure and shrinking top-line create material refinancing and solvency risks that outweigh operational strengths.
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.
Organon & Co. Key Strengths (OGN)
- Positive operating cash flow of $225M and free cash flow of $188M provide near-term liquidity
- Solid gross margin of 53.6% and acceptable operating margin of 14.6% demonstrate pricing power in core business
- Adequate current ratio of 1.97x and quick ratio of 1.42x indicate short-term liquidity is manageable
- 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
- Extreme leverage with 9.49x debt-to-equity ratio and $8.6B long-term debt creates acute refinancing and default risk
- Critically weak interest coverage ratio of 1.9x indicates minimal cushion to service debt from operations
- Revenue decline of 2.9% YoY and EPS collapse of 78.4% YoY signal deteriorating business fundamentals and operational distress
- 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
- Debt-to-equity ratio and refinancing ability given near-term debt maturities
- Interest coverage ratio and operating cash flow adequacy relative to debt service
- Revenue growth trajectory and operating margin sustainability
- 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 |
|---|---|---|---|
| Q1 2026 | $1.5B | $87.0M | $0.33 |
| 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 |
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
❓ Frequently Asked Questions about OGN
What is the AI rating for OGN?
Organon & Co. (OGN) has a Combined AI Grade of C from Claude (C) and ChatGPT (D) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are OGN's key strengths?
Claude: Positive operating cash flow of $225M and free cash flow of $188M provide near-term liquidity. Solid gross margin of 53.6% and acceptable operating margin of 14.6% demonstrate pricing power in core business. 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: Extreme leverage with 9.49x debt-to-equity ratio and $8.6B long-term debt creates acute refinancing and default risk. Critically weak interest coverage ratio of 1.9x indicates minimal cushion to service debt from operations. 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 $1.5B.
Does OGN pay dividends?
Organon & Co. pays dividends, with $5.0M 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 $0.55.
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 grade reflects both perspectives for balanced insights.
What is OGN's fundamental grade?
Based on our AI fundamental analysis in June 2026, Organon & Co. has a C grade with 80% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is OGN stock overvalued or undervalued?
Valuation metrics for OGN: ROE of 16.2% (sector avg: 15%), net margin of 10.0% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
What is OGN's AI grade for 2026?
Our dual AI analysis gives Organon & Co. a combined C grade 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 $225.0M, with capital expenditures of $37.0M. FCF margin is 12.9%.
How does OGN compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 10.0% (avg: 12%), ROE 16.2% (avg: 15%), current ratio 1.97 (avg: 2).
Is Organon & Co. carrying too much debt?
OGN has a debt-to-equity ratio of 9.49x, which is above the Healthcare sector average of 0.6x. However, the current ratio of 1.97 suggests adequate short-term liquidity.