Organon stock hits 52-week low at $10.18 amid market challenges

Published 01/05/2025, 14:32
Organon stock hits 52-week low at $10.18 amid market challenges

In a challenging market environment, Organon & Co. (OGN) stock has touched a 52-week low, reaching a price level of $10.18. This downturn reflects a significant retreat from previous valuations, marking a stark contrast to the company’s performance over the past year. Investors have witnessed a 1-year change with Organon’s stock plummeting by -33.69%, signaling a period of bearish sentiment towards the pharmaceutical company. Despite the market pessimism, the company remains profitable with $864M in net income and a strong 23% free cash flow yield. The decline to this year’s low point underscores the hurdles faced by the sector and the broader market headwinds influencing investor confidence. InvestingPro’s Fair Value analysis suggests the stock may be significantly undervalued at current levels.

In other recent news, Organon reported its first-quarter earnings, which exceeded analyst expectations with an adjusted earnings per share of $1.02, compared to the consensus estimate of $0.91. However, the company’s revenue for the quarter fell short, coming in at $1.51 billion, below the anticipated $1.55 billion and marking a 7% year-over-year decline. Organon reaffirmed its full-year 2025 revenue guidance of $6.125-6.325 billion, though the midpoint remains slightly under the consensus estimate of $6.292 billion. The company projects generating over $900 million in free cash flow before one-time costs by 2025. CEO Kevin Ali highlighted a strategic shift towards reducing debt, aiming for a net leverage ratio below 4.0x by the end of the year. Key products like Nexplanon and Vtama are reportedly on track to meet their revenue targets, with Vtama expected to achieve $150 million in revenue by 2025. Organon introduced a new annual regular dividend rate of $0.08 per share as part of its deleveraging strategy. The company’s first-quarter net income was $87 million, with an Adjusted EBITDA of $484 million, reflecting a margin of 32.0%. Despite the revenue shortfall and cautious guidance, Organon maintained its full-year 2025 Adjusted EBITDA margin outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.