Organon Profitability Analysis
| OGN Stock | USD 15.28 0.39 2.62% |
Net Income | First Reported 2010-12-31 | Previous Quarter 1 B | Current Value 1.4 B | Quarterly Volatility 532.5 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.48 | 0.5984 |
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| Net Profit Margin | 0.25 | 0.1633 |
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| Operating Profit Margin | 0.34 | 0.2122 |
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| Pretax Profit Margin | 0.1 | 0.1075 |
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| Return On Assets | 0.0806 | 0.0848 |
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For Organon profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Organon to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Organon Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Organon's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Organon Co over time as well as its relative position and ranking within its peers.
Organon |
Is Pharmaceuticals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Organon. If investors know Organon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Organon listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 5.081 | Dividend Share 1.12 | Earnings Share 5.05 | Revenue Per Share 24.984 | Quarterly Revenue Growth 0.041 |
The market value of Organon is measured differently than its book value, which is the value of Organon that is recorded on the company's balance sheet. Investors also form their own opinion of Organon's value that differs from its market value or its book value, called intrinsic value, which is Organon's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Organon's market value can be influenced by many factors that don't directly affect Organon's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Organon's value and its price as these two are different measures arrived at by different means. Investors typically determine if Organon is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Organon's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Organon Profit Margin vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Organon's current stock value. Our valuation model uses many indicators to compare Organon value to that of its competitors to determine the firm's financial worth. Organon Co is rated below average in return on asset category among its peers. It is regarded third in profit margin category among its peers fabricating about 2.57 of Profit Margin per Return On Asset. At this time, Organon's Net Profit Margin is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Organon's earnings, one of the primary drivers of an investment's value.Organon's Earnings Breakdown by Geography
Organon Profit Margin vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Organon |
| = | 0.0791 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Organon |
| = | 0.20 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Organon Profit Margin Comparison
Organon is currently under evaluation in profit margin category among its peers.
Organon Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Organon, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Organon will eventually generate negative long term returns. The profitability progress is the general direction of Organon's change in net profit over the period of time. It can combine multiple indicators of Organon, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -541 M | -568 M | |
| Operating Income | 1.3 B | 1.9 B | |
| Income Before Tax | 673 M | 639.4 M | |
| Net Income Applicable To Common Shares | 825.3 M | 1.5 B | |
| Net Income | 1 B | 1.5 B | |
| Income Tax Expense | -350 M | -332.5 M | |
| Net Income From Continuing Ops | 585 M | 555.8 M | |
| Total Other Income Expense Net | -656 M | -623.2 M | |
| Net Interest Income | -517 M | -491.1 M | |
| Change To Netincome | 162.9 M | 230.8 M | |
| Net Income Per Share | 4.01 | 7.82 | |
| Income Quality | 0.78 | 1.42 | |
| Net Income Per E B T | 1.52 | 1.60 |
Organon Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Organon. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Organon position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Organon's important profitability drivers and their relationship over time.
Organon Profitability Trends
Organon profitability trend refers to the progression of profit or loss within a business. An upward trend means that Organon's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Organon's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
Organon Profitability Drivers Correlations
One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Organon different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Organon in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Organon's future profitability.
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Use Organon in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Organon position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Organon will appreciate offsetting losses from the drop in the long position's value.Organon Pair Trading
Organon Co Pair Trading Analysis
The ability to find closely correlated positions to Organon could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Organon when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Organon - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Organon Co to buy it.
The correlation of Organon is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Organon moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Organon moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Organon can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Organon position
In addition to having Organon in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Funds or Etfs investing in energy sector, natural resources, and ecology. The Energy Funds theme has 41 constituents at this time.
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Check out Your Equity Center. You can also try the Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
To fully project Organon's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Organon at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Organon's income statement, its balance sheet, and the statement of cash flows.