Organogenesis Holdings Inc. (NASDAQ: ORGO)

Sector: Healthcare Industry: Drug Manufacturers - Specialty & Generic CIK: 0001661181
Market Cap 578.13 Mn
P/B 2.27
P/E -43.17
P/S 1.24
ROIC (Qtr) -3.00
Div Yield % 0.00
Rev 1y % (Qtr) 30.98
Total Debt (Qtr) 40.81 Mn
Debt/Equity (Qtr) 0.16

About

Organogenesis Holdings Inc., known by its ticker symbol ORGO, is a prominent player in the regenerative medicine industry. The company is dedicated to the creation, manufacturing, and distribution of advanced solutions for the Advanced Wound Care and Surgical & Sports Medicine markets. The efficacy of Organogenesis' products has been substantiated through extensive clinical and scientific research, demonstrating their capacity to enhance tissue healing and improve patient outcomes. Organogenesis' revenue is derived from the sale of its regenerative...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 64.37M provide 6.58x coverage of short-term debt 9.79M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of (38.79M) provides exceptional 18.42x coverage of interest expenses (2.11M), showing strong debt service capability.
  • Strong tangible asset base of 471.11M provides 11.54x coverage of total debt 40.81M, indicating robust asset backing and low credit risk.
  • Free cash flow of (51.65M) provides exceptional 24.53x coverage of interest expense (2.11M), showing strong debt service ability.
  • Tangible assets of 471.11M provide robust 11.69x coverage of other current liabilities 40.31M, indicating strong asset backing.

Bear case

  • Investment activities of (12.86M) provide weak support for R&D spending of 45.79M, which is -0.28x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (38.79M) shows concerning coverage of stock compensation expenses of 11.87M, with a -3.27 ratio indicating potential earnings quality issues.
  • High receivables of 168.78M relative to inventory of 39.58M (4.26 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of (51.65M) provides weak coverage of capital expenditures of 12.86M, with a -4.02 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (8.31M) show weak coverage of depreciation charges of 26.34M, with a -0.32 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Drug Manufacturers - Specialty & Generic
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ZTS Zoetis Inc. 56.15 Bn 21.18 5.98 7.27 Bn
2 TAK Takeda Pharmaceutical Co Ltd 48.92 Bn 221.13 1.66 36.24 Bn
3 HLN Haleon plc 46.13 Bn 25.59 3.29 -
4 TEVA Teva Pharmaceutical Industries Ltd 35.27 Bn 49.54 2.10 17.07 Bn
5 UTHR UNITED THERAPEUTICS Corp 21.76 Bn 17.11 6.95 0.00 Bn
6 VTRS Viatris Inc 14.87 Bn -4.03 1.05 14.44 Bn
7 NBIX Neurocrine Biosciences Inc 14.08 Bn 32.91 5.25 0.43 Bn
8 ELAN Elanco Animal Health Inc 11.64 Bn 323.29 2.54 4.32 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.07 24.98
EV to Cash from Ops. EV/CFO -14.05 -85.40
EV to Debt EV to Debt 13.36 265.88
EV to EBIT EV/EBIT -65.61 -32.65
EV to EBITDA EV/EBITDA 30.38 -29.50
EV to Free Cash Flow [EV/FCF] EV/FCF -10.56 -32.62
EV to Market Cap EV to Market Cap 0.94 -10.98
EV to Revenue EV/Rev 1.17 -700.14
Price to Book Value [P/B] P/B 2.27 27.22
Price to Earnings [P/E] P/E -43.17 -122.96
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -0.93 0.34
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.81
Dividend per Basic Share Div per Share (Qtr) 0.00 0.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.08
Interest Coverage Int. cover (Qtr) 3.95 -38.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -28.66 -157.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -32.19 44,776.25
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 121.26 24.45
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 43.41 18.14
EBIT Growth (1y) % EBIT 1y % (Qtr) 34.82 37.66
EBT Growth (1y) % EBT 1y % (Qtr) 58.24 108.18
EPS Growth (1y) % EPS 1y % (Qtr) -100.00 52.88
FCF Growth (1y) % FCF 1y % (Qtr) -1,427.81 -54.47
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 1.16 25.28
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.91 0.50
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.71 2.10
Current Ratio Curr Ratio (Qtr) 3.32 3.92
Debt to Equity Ratio Debt/Equity (Qtr) 0.16 -1.11
Interest Cover Ratio Int Coverage (Qtr) 3.95 -38.10
Times Interest Earned Times Interest Earned (Qtr) 3.95 -38.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 3.90 -62,432.09
EBIT Margin % EBIT Margin % (Qtr) -1.79 -63,260.88
EBT Margin % EBT Margin % (Qtr) -1.33 -66,726.96
Gross Margin % Gross Margin % (Qtr) 74.50 8,332.72
Net Profit Margin % Net Margin % (Qtr) -2.90 -66,728.37