Organon & Co. Common Stock (OGN)

FairStock Score: 52/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a durable business bought at a discount to intrinsic value. Organon sells women's health therapies and devices, a field with recurring need, but the filed numbers show a business under pressure. In fiscal 2025, the year ended 2025-12-31, revenue was $6.2B and net income was $187.0M, down from fiscal 2024 revenue of $6.4B and net income of $864.0M. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.6B, net income $108.0M, and diluted EPS $0.40; a year earlier, in fiscal Q2 2025, the quarter ended 2025-06-30, revenue was also $1.6B but net income was $145.0M and EPS $0.56. That is margin erosion, not growth. FairStock's Lynch category is SLOW GROWER - Shrinking, with profit down 38.7% a year over five years and revenue down 1.0%. At the close on 2026-10-13, the price was $13.77. FairStock calculates a P/E of 17.65, P/B of 3.60, EV/EBITDA of 8.41, and a 12.0% free cash flow yield on $434.0M trailing free cash flow. The cash yield is attractive. But the Graham Number is $8.20, leaving a margin of safety of -67.93%, so price is above that conservative value. ROCE is only 5.67%, D/E is 8.50, and the Altman Z-Score is 0.75 - signs of financial fragility. ROE of 24.04% and Piotroski 6/9 offer some support, but I suspect leverage flatters returns. The moat may be narrow: prescription women's health brands help, but shrinking revenue and collapsing profit suggest limited pricing power. I want a wider discount and steadier earnings before calling this compelling.

In plain English: Organon sells women's health medicines and devices, including birth control and fertility products. The business looks weak: sales are slightly lower, profits have dropped sharply, and it carries heavy debt. At $13.77, the stock looks expensive compared with its accounting value and falling earnings, even though it generates solid cash.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer