Operating Margin

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Price: 9.76 USD 0.21% Market Closed

Market Cap: $2.5B

21.5%

Declining

by 1.1%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

21.5%

Operating Income

$1.4B

Revenue

$6.3B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

21.5%

Operating Income

$1.4B

Revenue

$6.3B

Peer Comparison

Country		Company	Market Cap	Operating Margin
US		Organon & Co NYSE:OGN	2.5B USD	Loading...
US		Eli Lilly and Co NYSE:LLY	1T USD	Loading...
UK	D	Dechra Pharmaceuticals PLC F:1PK	5.1B EUR	Loading...
US		Johnson & Johnson NYSE:JNJ	529.7B USD	Loading...
CH		Roche Holding AG SIX:ROG	275.3B CHF	Loading...
UK		AstraZeneca PLC LSE:AZN	210.3B GBP	Loading...
DK		Novo Nordisk A/S CSE:NOVO B	1.8T DKK	Loading...
CH		Novartis AG SIX:NOVN	221.9B CHF	Loading...
US		Merck & Co Inc NYSE:MRK	269.1B USD	Loading...
IE	E	Endo International PLC LSE:0Y5F	218B USD	Loading...
US		Pfizer Inc NYSE:PFE	145.8B USD	Loading...

Market Distribution

Min	-4 087 900%
30th Percentile	-5.1%
Median	6%
70th Percentile	14.8%
Max	1 032 600%

Other Profitability Ratios

Organon & Co
Glance View

Economic Moat

None

Market Cap

2.5B USD

Industry

Pharmaceuticals

In the corporate realm of healthcare, Organon & Co. emerged as a dedicated player with a mission to address vital needs in women's health. Born from a spin-off of Merck & Co.'s women's health, biosimilars, and established brands business in 2021, Organon positions itself at the heart of a neglected niche ripe with opportunity. The company's vision is clear: to enhance the health and well-being of women at every stage of life. Organon leverages its legacy of trusted brands while simultaneously developing new and innovative solutions that cater to female-specific health concerns. Through its robust portfolio of medicines and products, Organon focuses on conditions that resonate deeply with women's health issues, from contraception and fertility to postpartum recovery. As a biopharmaceutical company, it prides itself on combining a blend of established and emerging solutions to create sustainable value. Organon’s business model capitalizes on its diverse range of offerings, employing a three-pronged strategy. The women's health segment is a significant focus, providing products that are central in addressing previously unmet needs. Meanwhile, the biosimilars segment expands the company's reach, offering affordable alternatives to more costly biologic treatments, which is increasingly crucial in today's price-sensitive healthcare environment. Lastly, the established brands division comprises a portfolio of mature pharmaceutical products that continue to generate stable revenue, thanks partly to their enduring trust among healthcare professionals. This multifaceted approach ensures Organon isn't merely reliant on new product development but can also maximize value from existing assets. The synergy across these divisions allows Organon to not only meet current market demands but also anticipate future health trends, making it a dynamic entity in the global healthcare landscape.

View OGN Analysis

OGN Intrinsic Value

Undervaluation 80%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Organon & Co
NYSE:OGN

Peer Comparison

Market Distribution

Other Profitability Ratios

Organon & Co
Glance View

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Organon & Co NYSE:OGN