Organon & Co. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Apellis Pharmaceuticals, Inc.

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Exelixis, Inc.

Intra-Cellular Therapies, Inc.

Repligen Corp.

Catalent, Inc.

Organon & Co.

Ionis Pharmaceuticals, Inc.

Alkermes Plc

Roivant Sciences Ltd.

Karuna Therapeutics, Inc.

Why is Organon & Co. ?

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Net Sales has grown by an annual rate of 13.72% and Operating profit at -3.44%

Negative results in Jun 25

INVENTORY TURNOVER RATIO(HY) Lowest at 2 times
NET PROFIT(Q) At USD 142.47 MM has Fallen at -35.56%
RAW MATERIAL COST(Y) Grown by 6.27% (YoY)

With ROE of 163.16%, it has a very attractive valuation with a 4.59 Price to Book Value

Over the past year, while the stock has generated a return of -53.06%, its profits have fallen by -22.3%

Below par performance in long term as well as near term

Along with generating -53.06% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Organon & Co. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Organon & Co. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Organon & Co.

47.72%

-1.05

61.51%

S&P 500

21.34%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.15%

EBIT Growth (5y)

-14.88%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

3.73

Net Debt to Equity (avg)

15.51

Sales to Capital Employed (avg)

0.69

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

47.41%

Pledged Shares

Institutional Holding

94.92%

ROCE (avg)

25.39%

ROE (avg)

858.56%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.02

EV to EBIT

7.74

EV to EBITDA

6.03

EV to Capital Employed

1.09

EV to Sales

1.55

PEG Ratio

Dividend Yield

1.02%

ROCE (Latest)

14.04%

ROE (Latest)

69.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Bearish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 737.67 %

INTEREST COVERAGE RATIO(Q)

Highest at 363.06

RAW MATERIAL COST(Y)

Fallen by 0.87% (YoY

CASH AND EQV(HY)

Highest at USD 2,248 MM

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 737 MM

OPERATING PROFIT(Q)

Lowest at USD 323 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 20.73 %

PRE-TAX PROFIT(Q)

At USD 165 MM has Fallen at -19.81%

NET PROFIT(Q)

At USD 97.38 MM has Fallen at -25.43%

Here's what is working for Organon & Co.

Interest Coverage Ratio

Highest at 363.06

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at 737.67 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Cash and Eqv

Highest at USD 2,248 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 0.87% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Organon & Co.

Operating Cash Flow

Lowest at USD 737 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Operating Profit

Lowest at USD 323 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 20.73 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At USD 165 MM has Fallen at -19.81%

over average net sales of the previous four periods of USD 205.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 97.38 MM has Fallen at -25.43%

over average net sales of the previous four periods of USD 130.59 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)