Last Updated: 08 Nov 2024
Executive Summary
Organon & Co (OGN) is a leading pharmaceutical company specializing in women's health, anesthesia, and biosimilars. The company has a strong financial performance with a market capitalization of $40.69 billion, EBITDA of $1.76 billion, and EPS of $5.05. OGN's dividend yield of 0.0709% is attractive, and its analyst target price of $22.86 indicates potential upside. However, the company faces challenges in the competitive pharmaceutical industry.
Company Overview
Organon & Co was founded in 2020 as a spin-off from Merck & Co. The company operates in over 90 countries and employs approximately 9,000 people. OGN's core therapeutic areas include reproductive medicine, contraception, psychiatry, hormone replacement therapy, and anesthesia. The company's products are sold to international markets.
Fundamental Analysis
OGN's financial performance has been strong. The company's revenue has grown by 0.041% year-over-year to $6.41 billion. Gross profit margin is 60.7%, and net income margin is 20.3%. OGN has a strong balance sheet with $2.5 billion in cash and equivalents and $1.2 billion in debt. The company's P/E ratio of 3.129 is below the industry average, and its PEG ratio is None.
Technical Analysis
OGN's stock price has been trading in a range between $10.38 and $23.1 over the past 52 weeks. The stock is currently trading at $16.12, below its 50-day and 200-day moving averages. The relative strength index (RSI) is at 42, indicating that the stock is neither overbought nor oversold.
Short Term Outlook
In the short term, OGN's stock price is likely to remain range-bound. The company's financial performance is strong, but the pharmaceutical industry is competitive. OGN faces competition from both large pharmaceutical companies and generic drug manufacturers. The stock's technical indicators are neutral, suggesting that the stock is likely to continue trading in a range.
Long Term Outlook
In the long term, OGN's stock price is likely to rise. The company has a strong product portfolio and a solid financial foundation. OGN is also well-positioned to benefit from the growing demand for women's health products. The company's analyst target price of $22.86 indicates potential upside of over 40%.
Analyst Recommendations
Analysts have a mixed view on OGN's stock. Four analysts rate the stock as a Buy, four rate it as a Hold, and two rate it as a Sell. The average analyst target price is $22.86, which implies a potential upside of over 40%.
