Latest Ratios: P/E Ratio 19.1x · EV/EBITDA 7.2x · ROE 30.6%. (2018–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.6B | $1.9B | $3.9B | $3.7B | $7.1B | $7.7B | — | — | — |
| Enterprise Value | $11.8B | $10.1B | $12.2B | $11.9B | $15.5B | $16.3B | — | — | — |
| P/E Ratio → | 19.08 | 9.96 | 4.48 | 3.61 | 7.78 | 5.71 | — | — | — |
| P/S Ratio | 0.58 | 0.30 | 0.60 | 0.59 | 1.15 | 1.22 | — | — | — |
| P/B Ratio | 4.76 | 2.49 | 8.19 | — | — | — | — | — | — |
| P/FCF | 6.71 | 3.48 | 6.58 | 6.87 | 16.54 | 3.92 | — | — | — |
| P/OCF | 5.15 | 2.67 | 4.12 | 4.63 | 8.31 | 3.14 | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.62 | 1.91 | 1.91 | 2.52 | 2.59 | — | — | — |
| EV / EBITDA | 7.22 | 6.16 | 6.94 | 7.63 | 8.10 | 7.75 | — | — | — |
| EV / EBIT | 9.21 | 10.87 | 9.21 | 9.94 | 10.06 | 9.15 | — | — | — |
| EV / FCF | — | 18.77 | 20.80 | 22.18 | 36.04 | 8.30 | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 54.1% | 54.1% | 58.0% | 59.8% | 62.8% | 62.2% | 67.6% | 70.8% | 52.0% |
| Operating Margin | 20.7% | 20.7% | 23.2% | 21.2% | 27.6% | 30.4% | 43.6% | 49.5% | 27.7% |
| Net Profit Margin | 3.0% | 3.0% | 13.5% | 16.3% | 14.9% | 21.4% | 33.1% | 41.4% | 22.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | 30.6% | 30.6% | 429.9% | — | — | 67.9% | 34.5% | 48.1% | 33.9% |
| ROA | 1.4% | 1.4% | 6.9% | 8.9% | 8.5% | 13.0% | 20.9% | 30.6% | 20.5% |
| ROIC | 10.8% | 10.8% | 13.1% | 12.7% | 17.5% | 22.8% | 34.4% | 43.9% | 32.5% |
| ROCE | 12.3% | 12.3% | 15.2% | 15.1% | 20.6% | 24.7% | 34.2% | 42.4% | 30.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 11.70 | 11.70 | 19.14 | — | — | — | 0.01 | 0.03 | 0.02 |
| Debt / EBITDA | 5.37 | 5.37 | 5.13 | 5.71 | 4.75 | 4.44 | 0.01 | 0.04 | 0.03 |
| Net Debt / Equity | — | 10.94 | 17.71 | — | — | — | 0.00 | -0.02 | -0.01 |
| Net Debt / EBITDA | 5.02 | 5.02 | 4.74 | 5.27 | 4.38 | 4.09 | 0.01 | -0.03 | -0.02 |
| Debt / FCF | — | 15.29 | 14.22 | 15.31 | 19.50 | 4.38 | 0.01 | -0.05 | -0.03 |
| Interest Coverage | 1.84 | 1.84 | 2.55 | 2.28 | 3.66 | 6.93 | 474.50 | 593.50 | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.82 | 1.82 | 1.60 | 1.54 | 1.56 | 1.45 | 1.33 | 2.95 | 2.40 |
| Quick Ratio | 1.23 | 1.23 | 1.11 | 1.09 | 1.17 | 1.10 | 0.99 | 2.15 | 1.76 |
| Cash Ratio | 0.24 | 0.24 | 0.25 | 0.24 | 0.28 | 0.28 | 0.00 | 0.24 | 0.16 |
| Asset Turnover | — | 0.48 | 0.49 | 0.52 | 0.56 | 0.59 | 0.65 | 0.74 | 0.93 |
| Inventory Turnover | 2.03 | 2.03 | 2.03 | 1.91 | 2.29 | 2.60 | 2.32 | 2.12 | 4.72 |
| Days Sales Outstanding | — | 84.14 | 84.99 | 108.22 | 94.94 | 87.54 | 78.51 | 73.83 | 59.47 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.5% | 4.7% | 7.7% | 8.0% | 4.1% | 1.9% | — | — | — |
| Payout Ratio | 47.1% | 47.1% | 34.4% | 28.7% | 31.6% | 10.7% | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.2% | 10.0% | 22.3% | 27.7% | 12.9% | 17.5% | — | — | — |
| FCF Yield | 14.9% | 28.8% | 15.2% | 14.6% | 6.0% | 25.5% | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.6% | 0.5% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 2.5% | 4.7% | 8.3% | 8.4% | 4.1% | 1.9% | — | — | — |
| Shares Outstanding | — | $261M | $259M | $256M | $255M | $254M | $254M | $253M | $253M |
Includes 30+ ratios · 8 years · Updated daily
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Quick answers to the most common questions about buying OGN stock.
Organon & Co.'s current P/E ratio is 19.1x. The historical average is 6.3x. This places it at the 100th percentile of its historical range.
Organon & Co.'s current EV/EBITDA is 7.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 7.3x.
Organon & Co.'s return on equity (ROE) is 30.6%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 107.5%.
Based on historical data, Organon & Co. is trading at a P/E of 19.1x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Organon & Co.'s current dividend yield is 2.46% with a payout ratio of 47.1%.
Organon & Co. has 54.1% gross margin and 20.7% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Organon & Co.'s Debt/EBITDA ratio is 5.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
High leverage and China VBP
Metrics are mathematically derived from official filings.
Leverage Eases but Remains Crushing
Debt-to-equity has fallen from 181.54 in 2024Q1 to 8.50 in 2026Q2, yet total debt of $8.6 billion still dwarfs equity, leaving the company highly vulnerable to interest rate shocks, as per balance sheet data.
The dramatic decline in D/E is primarily a function of equity rebuilding from $48 million to $1.0 billion, not meaningful debt reduction. Interest coverage of 2.69 in 2026Q2 remains thin, suggesting that a 100 basis point rise in rates could consume a significant portion of operating income. The company's net margin of 3.01% leaves little room for error, and the negative interest coverage in 2025Q4 (-0.22) highlights the fragility of debt service capacity.
Liquidity Ratios Mask Cash Strain
The current ratio improved to 1.95 in 2026Q2 from 1.65 in 2024Q1, but cash of $1.1 billion is modest against $8.6 billion in debt, suggesting a tight liquidity buffer, based on reported balance sheet figures.
While the current ratio appears healthy, the quick ratio of 1.44 indicates that inventory is a significant component of current assets, which may be less liquid in a downturn. The company's cash position is only about 13% of total debt, and with free cash flow margins oscillating between -1.5% and 18.7%, the ability to service near-term obligations without refinancing is questionable. Investors should monitor whether the company can maintain positive free cash flow to avoid drawing down its already modest cash reserves.
Working Capital Cycle Lengthens
The cash conversion cycle extended to 128 days in 2026Q2 from 117 days in 2024Q1, driven by a rise in days sales outstanding to 84 and days inventory outstanding to 174, as per reported figures, indicating deteriorating working capital efficiency.
The lengthening CCC suggests that Organon is taking longer to collect receivables and move inventory, which may reflect softening demand or increased channel stuffing in emerging markets. Days payable outstanding has declined from 155 to 130, indicating that the company is paying suppliers faster, possibly to maintain relationships or due to tighter credit terms. This combination reduces free cash flow generation, which is critical given the high leverage and thin net margin.
Margin Erosion Reflects Pricing Power Loss
Gross margin fell to 54.4% in 2026Q2 from 59.0% in 2024Q1, a 460 basis point decline, as reported in financial statements, indicating that pricing pressure in Established Brands and biosimilars is overwhelming product mix benefits.
Operating margin has also contracted from 25.5% to 20.7% over the same period, suggesting that SG&A costs are not flexing downward with revenue. The net margin of 6.9% in 2026Q2 is artificially boosted by tax benefits and non-operating items, as evidenced by the -13.6% net margin in 2025Q4. Adjusted EBITDA may be a more reliable indicator of earning power, but investors should be cautious of management's adjustments given the heavy non-cash charges from the spin-off.
ROIC Stagnant Despite Equity Rebuild
Return on invested capital has hovered between 2.0% and 3.8% over the past ten quarters, with 2026Q2 at 2.9%, as per reported figures, indicating that the company is not compounding returns on its capital base.
The stability of ROIC at low levels suggests that the high leverage and declining margins are offsetting any operational improvements. ROE has been volatile, swinging from -24.7% to 112.7%, driven by the thin equity base and non-recurring items, making it an unreliable metric for assessing economic performance. The company's asset turnover of 0.12 is extremely low, reflecting the asset-heavy nature of its goodwill and intangible assets, which do not generate proportional revenue.
Misapplied P/E Obscures Leverage Risk
The trailing P/E of 18.83 appears reasonable, but the forward P/E of 3.99 is misleading because it relies on depressed earnings that are inflated by tax benefits and non-operating gains, as per valuation data, obscuring the true economic picture.
The forward P/E is based on analyst estimates that may not fully reflect the ongoing revenue decline and interest expense burden. A more appropriate metric is EV/EBITDA, which at 7.19 is more comparable to peers like Pfizer (10.38) and AbbVie (17.52), but still does not capture the refinancing risk. Investors should focus on free cash flow yield and debt paydown capacity rather than P/E, given the company's high leverage and thin net margin.