Stock Analysis: Organon & Co.

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Organon & Co. (OGN) is a science-based global pharmaceutical company that develops and delivers health solutions through a portfolio of prescription therapies within women's health, biosimilars, and established brands. 

The Company's operations include the following three portfolios of products: Women’s Health, Biosimilars, and Established medicines. Geographically, it derives a majority of its revenue from Europe and Canada.

The company sells its products to drug wholesalers and retailers, hospitals, pharmacies, clinics, government agencies, health maintenance organizations, pharmacy benefit managers, and other institutions worldwide.

The company was incorporated in 2020 and is headquartered in Jersey City, New Jersey.

Three key data points gauge Organon & Co. or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.
 

OGN Price

Over the past year, Organon’s share price dropped about 31% from $28.71 to $19.84 as of Wednesday’s market close.

If Organon’s stock trades in the range of $18.00 to $30.00 this next year, its recent $19.84 share price might rise to $25.00 by next year. Of course, Organon’s price could drop about the same $5.16 amount or more.

My upside estimate of $5.16, however, is $4.25 under the median of one-year target prices conjured up by 8 analysts tracking OGN for brokers.
 

OGN Dividend

Organon & Co. has paid the same quarterly $0.28 dividend since September 13, 2021. Organon’s most recent Q dividend, payable September 14th to shareholders of record August 17th is $0.28. Its annual dividend payout of $1.12 is projected to yield 5.65% per Wednesday’s closing price.
 

OGN Returns

Adding the $1.12 anticipated annual dividend to Organon & Co’s estimated $5.16 possible price upside reveals a $6.28 potential gross gain per share for the coming year.

At Tuesday’s $19.84 closing price, a little under $1000 would buy 50 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.20 per share.

Subtracting that maybe $0.20 brokerage cost from my estimated $6.28 gross gain per share makes a net gain of $6.08 X 50 shares = $304.00 or about a 30.5% net gain.

This may be the time to pounce on Organon & Co. shares. But beware, Organon & Co is a General Drug Pharmaceutical provider doing business in a highly regulated medical environment. However, the estimated $56.50 dividend from $1000 invested comes in at just over 2.75 times the recent $18.84 single share price. The choice is yours.

Remember the true value of any stock is best realized by your personal ownership of shares.


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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