Organon
Through the investors’ lenses
Each of these investors has said in public what they look at before buying. Click a name to see how this company measures up — a tick where it passes one of their tests, a cross where it does not.
Warren Buffett 2/4
| Measure | OGN | Checked against | |
|---|---|---|---|
| Owner earnings | $181.00m | positive | ✓ |
| Return on equity | 24.9% | median 11.7% | ✓ |
| Debt to equity | 11.49x | median 0.79x | ✗ |
| Operating margin | 6.8% | median 15.0% | ✗ |
Passes 2 of 4. To be clear: Warren Buffett has never said anything about Organon. These are the company’s own figures put through the tests he described. What he looks at, and why →
Terry Smith 1/4
| Measure | OGN | Checked against | |
|---|---|---|---|
| Return on capital employed | 4.5% | median 10.1% | ✗ |
| Cash conversion | 3.74x | median 1.78x | ✓ |
| Operating margin | 6.8% | median 15.0% | ✗ |
| Debt to equity | 11.49x | median 0.79x | ✗ |
Passes 1 of 4. To be clear: Terry Smith has never said anything about Organon. These are the company’s own figures put through the tests he described. What he looks at, and why →
Charlie Munger 1/3
| Measure | OGN | Checked against | |
|---|---|---|---|
| Return on capital employed | 4.5% | median 10.1% | ✗ |
| Return on equity | 24.9% | median 11.7% | ✓ |
| Operating margin | 6.8% | median 15.0% | ✗ |
Passes 1 of 3. To be clear: Charlie Munger has never said anything about Organon. These are the company’s own figures put through the tests he described. What he looks at, and why →
Chuck Akre 2/3
| Measure | OGN | Checked against | |
|---|---|---|---|
| Return on equity | 24.9% | median 11.7% | ✓ |
| Debt to equity | 11.49x | median 0.79x | ✗ |
| Cash conversion | 3.74x | median 1.78x | ✓ |
Passes 2 of 3. To be clear: Chuck Akre has never said anything about Organon. These are the company’s own figures put through the tests he described. What he looks at, and why →
Philip Fisher 0/4
| Measure | OGN | Checked against | |
|---|---|---|---|
| Operating margin | 6.8% | median 15.0% | ✗ |
| Net margin | 3.0% | median 10.2% | ✗ |
| Return on capital employed | 4.5% | median 10.1% | ✗ |
| Operating margin, held or improving | 6.8% | 10-yr median 18.2% | ✗ |
Passes 0 of 4. To be clear: Philip Fisher has never said anything about Organon. These are the company’s own figures put through the tests he described. What he looks at, and why →
Walter Schloss 1/2
| Measure | OGN | Checked against | |
|---|---|---|---|
| Current ratio | 1.82x | median 1.25x | ✓ |
| Debt to equity | 11.49x | median 0.79x | ✗ |
Passes 1 of 2. To be clear: Walter Schloss has never said anything about Organon. These are the company’s own figures put through the tests he described. What he looks at, and why →
Benjamin Graham 0/2
| Measure | OGN | Checked against | |
|---|---|---|---|
| Current ratio | 1.82x | 2.00x published | ✗ |
| Long-term debt to working capital | 4.40x | 1.00x published | ✗ |
Passes 0 of 2. To be clear: Benjamin Graham has never said anything about Organon. These are the company’s own figures put through the tests he described. What he looks at, and why →
Joel Greenblatt 0/1
| Measure | OGN | Checked against | |
|---|---|---|---|
| Return on capital employed | 4.5% | median 10.1% | ✗ |
Passes 0 of 1. To be clear: Joel Greenblatt has never said anything about Organon. These are the company’s own figures put through the tests he described. What he looks at, and why →
Peter Lynch 0/2
| Measure | OGN | Checked against | |
|---|---|---|---|
| Debt to equity | 11.49x | median 0.79x | ✗ |
| Net margin | 3.0% | median 10.2% | ✗ |
Passes 0 of 2. To be clear: Peter Lynch has never said anything about Organon. These are the company’s own figures put through the tests he described. What he looks at, and why →
| Basis | Payout | Why |
|---|---|---|
| GAAP earnings | 47.2% | whyThe figure most screeners publish. |
| Operating cash flow | 12.6% | whyBefore capital spending. |
| Free cash flow | 16.4% | whyAfter maintaining the business. |
Spread between highest and lowest: 34.7 percentage points. Same filings, different denominators.
Coverage rating 71 / 100 — Adequate. ? Peer standing 41/50Direction 30/30Stability 0/20
Free cash flow payout, last 5 years
| Fiscal year | Payout |
|---|---|
| 2025-12-31 | 16.4% |
| 2024-12-31 | 38.9% |
| 2023-12-31 | 53.6% |
| 2022-12-31 | 43.8% |
| 2021-12-31 | 7.4% |
82% of the 38 health care here pay out more — comfortable for the sector.
The arithmetic
- GAAP earnings — dividends declared per share $0.340 ÷ diluted EPS $0.720
- Operating cash flow — dividends paid $88.0m ÷ operating cash flow $700m
- Free cash flow — dividends paid $88.0m ÷ (operating cash flow $700m − capex $162m)
Where the figures came from
- 10-K filed 2026-02-24 · accession 0001628280-26-011125
All public at sec.gov — you should not have to take our word for it.
Computed straight from SEC XBRL. A number that looks wrong to you is more useful to us than agreement — tell us.
What the free cash flow payout ratio measures, and where every company here sits on it.
Also on: rated adequate · when it files.
When this changes
Every figure above is recomputed whenever Organon files. The monthly letter carries what filed, what moved, and one finding computed across every company here.