# Organon & Co. (OGN.US)

Canonical: https://gigainvestors.com/s/OGN

Analysis as of: 2026-10-16T07:30:51.184Z. Financial observations: FY2017–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $13.76 per share; close as of 2026-10-15.

Estimated value: low $36.39 per share, central $40.88 per share, high $46.85 per share. Buy at or below the central value $40.88 per share. Valuation as of 2026-10-16T07:30:51.184Z; scenarios are not confidence intervals.

Expected annual return: 30.7% at the stated quote. About 30.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 6 revenue declines in the last 10 years

- more than 5 revenue declines in ten years

- Financial history: 9 years

- Years with declining revenue: 6

- Years with a net loss: 0

- Operating margin variation: 0.31×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.31×

- FY2018: 0.28×

- FY2019: 0.49×

- FY2020: 0.44×

- FY2021: 0.30×

- FY2022: 0.28×

- FY2023: 0.21×

- FY2024: 0.23×

- FY2025: 0.21×

### moat: fail

- Recent gross margin fell 5.8pp below the typical margin (limit 4pp)

- ROIC, median of available years: 57.6%

- ROIC, second-lowest year: 35.8%

- Typical minus recent gross margin: 5.8 pp

- Typical gross margin (annual median): 59.8%

- Recent gross margin (lower of latest and 3-year median): 54.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.2%

- ROIC including acquisitions, ten-year median: 13.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2018: >100%

- FY2019: >100%

- FY2020: >100%

- FY2021: 67.3%

- FY2022: 47.9%

- FY2023: 37.2%

- FY2024: 35.8%

- FY2025: 17.3%

### economics: pass

- Owner earnings / net income, 5-yr: 0.92×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $4.0B

- Net income, five-year total: $4.3B

- Working capital / revenue, annual change: 0.3 pp

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.78×

- FY2022: 0.77×

- FY2023: 0.99×

- FY2024: 0.95×

- FY2025: 2.06×

### management: fail

- buybacks leaned toward cheaper years (informational)

- Per-share earnings: 8.51 to 3.33 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 0.6%

- Diluted shares, 5-year annual growth: 0.6%

- Per-share value growth: -14.5%

- Per-share value change: -$5.17

- Per-share value, starting three-year median: $8.51

- Per-share value, ending three-year median: $3.33

- Buybacks concentrated in cheaper years (correlation): 0.50

- Average buyback yield: 0.4%

- Buyback history: 3 years

- Debt-funded buybacks: No

- ROIC, last three-year median: 35.8%

Chart: Earnings per share; fiscal year observations.

- FY2017: $7.11

- FY2018: $8.51

- FY2019: $12.69

- FY2020: $8.52

- FY2021: $5.31

- FY2022: $3.59

- FY2023: $3.99

- FY2024: $3.33

- FY2025: $0.72

### accounting: pass

- restructuring or one-time charges in at least three of five years

- Sloan accruals: -4.0%

- Receivables to sales index (DSRI): 0.99×

- Restructuring years, last five: 5

- Stock compensation / operating cash flow: 11.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.74×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 7.03×

Chart: Sloan accruals; fiscal year observations.

- FY2018: -14.6%

- FY2019: 4.3%

- FY2020: -0.3%

- FY2021: -10.4%

- FY2022: 0.5%

- FY2023: 1.9%

- FY2024: -0.6%

- FY2025: -4.0%

## Holders

- [Thomas Graham Kahn](https://gigainvestors.com/KB): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 64% since May 2022 · "OGN Q4 Deep Dive: Margin Compression and U.S. Headwinds Shape 2026 Outlook" (finance.yahoo.com, Feb 2026) · sales -2.9%

Story as of 2026-10-16T09:59:18.922Z; price observation 2026-10-15.

Price needs cash profits to shrink 16.1% a year for ten years

- 2025-09-01: How Investors Are Reacting To Organon (OGN) Lifting 2025 Guidance and CEO Share Purchase ([finance.yahoo.com](https://finance.yahoo.com/news/investors-reacting-organon-ogn-lifting-101043999.html))

- 2025-10-27: Organon slides to record low after leadership shakeup linked to wholesaler sales probe ([seekingalpha.com](https://seekingalpha.com/news/4508543-organon-names-interim-ceo-after-internal-probe-uncovers-improper-wholesaler-sales-practices?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-11-10: Organon cuts outlook despite Q3 beat amid JADA divestment ([seekingalpha.com](https://seekingalpha.com/news/4519278-organon-cuts-outlook-despite-q3-beat?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-01-09: Why Organon (OGN) Is Up 13.4% After Expanding Nilemdo Rights In Six European Markets ([finance.yahoo.com](https://finance.yahoo.com/news/why-organon-ogn-13-4-081743272.html))

- 2026-02-13: OGN Q4 Deep Dive: Margin Compression and U.S. Headwinds Shape 2026 Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/ogn-q4-deep-dive-margin-053422675.html))

- 2026-04-24: Organon Stock Surges 31% on Sweetened $13 Billion Takeover Offer From Sun Pharma ([finance.yahoo.com](https://finance.yahoo.com/m/32c0dbbb-31e0-37a8-95d5-8f19fe4c42fc/organon-stock-surges-31%25-on.html))

### Sales · FY2024–2025

sales -2.9%; source https://www.sec.gov/Archives/edgar/data/1821825/000162828026011125/ogn-20251231.htm; observed 2026-02-24.

- FY2017: $11B 

- FY2018: $9.8B 

- FY2019: $7.8B 

- FY2020: $6.5B 

- FY2021: $6.3B 

- FY2022: $6.2B 

- FY2023: $6.3B 

- FY2024: $6.4B 

- FY2025: $6.2B 

### Gross margin · FY2025

gross margin 54.1%; source https://www.sec.gov/Archives/edgar/data/1821825/000162828026011125/ogn-20251231.htm; observed 2026-02-24.

- FY2017: 56.3% 

- FY2018: 52.0% 

- FY2019: 70.8% 

- FY2020: 67.6% 

- FY2021: 62.2% 

- FY2022: 62.8% 

- FY2023: 59.8% 

- FY2024: 58.0% 

- FY2025: 54.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in drug manufacturers general; annual sales are USD 6.2 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1821825/000162828026011125/ogn-20251231.htm (filed 2026-02-24); FY2025: revenue 6216000000; grossProfit 3362000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); OGN.US: 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 immunology products, such as Brenzys, Renflexis, and Hadlima; oncology products, including Ontruzant and Aybintio; Bildyos and Bilprevda, a recombinant anti-RANKL human monoclonal antibodies; and Poherdy, a neu receptor antagonist. The company also offers cholesterol-modifying medicines under the Zetia, Ezetrol, Vytorin, Inegy, Atozet, Rosuzet, and Zocor brands; Cozaar and Hyzaar for hypertension; respiratory products to control and prevent asthma symptoms under the Singulair, Dulera, Zenhale, and Asmanex brands, as well as seasonal allergic rhinitis under the Nasonex, Clarinex, and Aerius brands. In addition, it provides dermatology products under the Vtama, Diprosone, and Elocon brand; bone health products under the Fosamax brand; and non-opioid pain management products under the Arcoxia, Diprospan, and Celestone brands, as well as Proscar for symptomatic benign prostatic hyperplasia; and Propecia for male pattern hair loss. The company serves drug wholesalers and retailers, hospitals, clinics, government agencies, health maintenance organizations, pharmacy benefit managers, and other institutions. Organon & Co. was founded in 1923 and is headquartered in Jersey City, New Jersey.

### Why customers stay

Margins ranged from 54.1% to 59.8% during 2023–25; it earns 57.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: grossProfit / revenue = 59.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: grossProfit / revenue = 58%.

- Source: https://www.sec.gov/Archives/edgar/data/1821825/000162828026011125/ogn-20251231.htm (filed 2026-02-24); FY2025: grossProfit / revenue = 54.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); 9-year return on capital observations [[2018,1.2938512275558813],[2019,1.496766663088977],[2020,2.5874477904398496],[2021,0.6725212401259798],[2022,0.478694741379891],[2023,0.3722300140252454],[2024,0.357813628702143],[2025,0.17310880829015543]]; median 0.5756079907529355. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 19.4% of cash earnings; paid dividends in 8 of 9 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2017: growth capex 0; upkeep 86000000; owner earnings 3688000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2018: growth capex 0; upkeep 101000000; owner earnings 3725000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2019: growth capex 0; upkeep 92000000; owner earnings 3480000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2020: growth capex 0; upkeep 278000000; owner earnings 2024000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2021: growth capex 0; upkeep 488000000; owner earnings 1058000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2022: growth capex 0; upkeep 427000000; cash acquisitions 0; owner earnings 702000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: growth capex 15315465.579068989; upkeep 245684534.420931; cash acquisitions 0; owner earnings 1013315465.579069. Growth capex plus acquisitions / owner earnings = 0.01511421279879195.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: growth capex 27142428.248063922; upkeep 323857571.7519361; cash acquisitions 166000000; owner earnings 817142428.2480639. Growth capex plus acquisitions / owner earnings = 0.23636323555265293.

- Source: https://www.sec.gov/Archives/edgar/data/1821825/000162828026011125/ogn-20251231.htm (filed 2026-02-24); FY2025: growth capex 0; upkeep 162000000; cash acquisitions 75000000; owner earnings 386000000. Growth capex plus acquisitions / owner earnings = 0.19430051813471502.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Dividend observations: [[2017,0],[2018,145000000],[2019,145000000],[2020,145000000],[2021,145000000],[2022,290000000],[2023,294000000],[2024,297000000],[2025,88000000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 0.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); OGN.US SharesStats.PercentInsiders = 0.46299999999999997 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 16.1% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Ten-year compound average after fade. Initial solved rate -0.23511379900973134. Price 13.76; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2021-05: $35.75 per share

- 2021-06: $30.26 per share

- 2021-07: $29.01 per share

- 2021-08: $33.89 per share

- 2021-09: $32.79 per share

- 2021-10: $36.75 per share

- 2021-11: $29.23 per share

- 2021-12: $30.45 per share

- 2022-01: $31.91 per share

- 2022-02: $37.33 per share

- 2022-03: $34.93 per share

- 2022-04: $32.33 per share

- 2022-05: $37.96 per share

- 2022-06: $33.75 per share

- 2022-07: $31.72 per share

- 2022-08: $28.53 per share

- 2022-09: $23.40 per share

- 2022-10: $26.18 per share

- 2022-11: $26.02 per share

- 2022-12: $27.93 per share

- 2023-01: $30.13 per share

- 2023-02: $24.49 per share

- 2023-03: $23.52 per share

- 2023-04: $24.63 per share

- 2023-05: $19.39 per share

- 2023-06: $20.81 per share

- 2023-07: $21.98 per share

- 2023-08: $21.96 per share

- 2023-09: $17.36 per share

- 2023-10: $14.79 per share

- 2023-11: $11.32 per share

- 2023-12: $14.42 per share

- 2024-01: $16.65 per share

- 2024-02: $17.41 per share

- 2024-03: $18.80 per share

- 2024-04: $18.61 per share

- 2024-05: $21.33 per share

- 2024-06: $20.70 per share

- 2024-07: $21.86 per share

- 2024-08: $22.35 per share

- 2024-09: $19.13 per share

- 2024-10: $18.78 per share

- 2024-11: $15.87 per share

- 2024-12: $14.92 per share

- 2025-01: $15.56 per share

- 2025-02: $14.91 per share

- 2025-03: $14.89 per share

- 2025-04: $12.93 per share

- 2025-05: $9.22 per share

- 2025-06: $9.68 per share

- 2025-07: $9.70 per share

- 2025-08: $9.42 per share

- 2025-09: $10.68 per share

- 2025-10: $6.75 per share

- 2025-11: $7.71 per share

- 2025-12: $7.17 per share

- 2026-01: $8.54 per share

- 2026-02: $7.29 per share

- 2026-03: $5.99 per share

- 2026-04: $13.25 per share

- 2026-05: $13.34 per share

- 2026-06: $13.54 per share

- 2026-07: $13.55 per share

- 2026-08: $13.76 per share

- 2026-09: $13.70 per share

- 2026-10: $13.76 per share

## Annual estimated value (USD per share)

- FY2021: low $97.61 per share, central $110.74 per share, high $128.22 per share

- FY2022: low $84.23 per share, central $95.53 per share, high $110.57 per share

- FY2023: low $47.05 per share, central $53.23 per share, high $61.46 per share

- FY2024: low $45.80 per share, central $51.83 per share, high $59.85 per share

- FY2025: low $34.98 per share, central $39.56 per share, high $45.66 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1821825/000162828026011125/ogn-20251231.htm); period 2025-12-31, filed 2026-02-24.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.