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Organogenesis Holdings Inc (ORGO)
NASDAQ:ORGO
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Organogenesis Holdings
(NASDAQ:ORGO)
68Neutral
Positive Factors
Debt management
The recent debt reduction by Organogenesis Holdings has contributed to a higher price target, reflecting improved financial stability.
Revenue performance
Revenue in the fourth quarter exceeded expectations with a strong sales performance, indicating robust demand for Organogenesis's products.
Negative Factors
Guidance outlook
The guidance for the first quarter is below consensus due to expected impacts from LCDs, suggesting potential short-term challenges.
Organogenesis Holdings (ORGO) vs. S&P 500 (SPY)
Market Cap
$672.19M
Dividend YieldN/A
Average Volume (3M)2.79M
Price to Earnings (P/E)946.4
Beta (1Y)1.60
Revenue Growth11.29%
EPS Growth-79.52%
CountryUS
Employees862
SectorHealthcare
Sector Strength78
IndustryPharmaceuticals
Share Statistics
EPS (TTM)<0.01
Shares Outstanding126,828,094
10 Day Avg. Volume7,612,231
30 Day Avg. Volume2,788,377
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.35
Price to Cash Flow (P/CF)14.90
P/FCF Ratio20.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.00Price Target Upside13.21% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Organogenesis Holdings Business Overview & Revenue Model
Company DescriptionOrganogenesis Holdings, Inc. is a regenerative medical company. It focuses on the development, manufacture and commercialization of product solutions for the advanced wound care, surgical, and sports medicine markets. The company was founded in 1985 and is headquartered in Canton, MA.
How the Company Makes MoneyOrganogenesis Holdings generates revenue primarily through the sale of its advanced wound care and surgical biologics products. The company markets its products to hospitals, clinics, and other healthcare providers both in the United States and internationally. Key revenue streams include product sales in the advanced wound care segment, which encompasses treatments for chronic wounds such as diabetic foot ulcers and venous leg ulcers, and the surgical biologics segment, which includes products used in surgical procedures and sports medicine. Organogenesis also engages in strategic partnerships and collaborations to enhance its product offerings and expand its market reach. Additionally, the company invests in research and development to innovate and introduce new products, which can drive future revenue growth.
Organogenesis Holdings Financial Statement Overview
Summary
Organogenesis Holdings exhibits a mix of strengths and weaknesses across its financial statements. While gross profitability and asset management are positive, inconsistent revenue and cash flow performance pose concerns. The balance sheet's moderate leverage and stable equity base provide some reassurance, but operational efficiency needs improvement to enhance profitability.Income Statement
Organogenesis Holdings has demonstrated a volatile revenue trajectory with fluctuations over the years. The gross profit margin remains healthy, indicating efficient production processes, but net profit margins have been inconsistent, turning negative recently. The company has struggled to maintain stable EBIT and EBITDA margins, particularly in the latest period, which reflects operational challenges.55
Neutral
Balance Sheet
The company's balance sheet shows moderate leverage with a debt-to-equity ratio that suggests manageable debt levels. The return on equity has been positive but decreased over time, indicating declining profitability for shareholders. The equity ratio reflects a solid asset base supported by equity, offering some financial stability.60
Neutral
Cash Flow
Free cash flow has been inconsistent, with a recent decrease reflecting higher capital expenditures relative to operating cash flows. The operating cash flow to net income ratio suggests that cash generation from operations is stable, but free cash flow conversion remains a challenge.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 482.04M | 433.14M | 450.89M | 468.06M | 338.30M | Gross Profit |
| 366.30M | 326.66M | 345.87M | 353.86M | 250.98M | EBIT |
| -1.28M | 12.53M | 22.30M | 72.92M | 27.41M | EBITDA |
| -1.28M | 36.03M | 40.32M | 87.00M | 37.23M | Net Income Common Stockholders |
| 861.00K | 4.95M | 15.53M | 94.20M | 17.23M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 135.57M | 104.34M | 102.48M | 113.93M | 84.39M | Total Assets |
| 497.89M | 460.02M | 449.36M | 443.26M | 294.49M | Total Debt |
| 43.31M | 119.35M | 123.79M | 132.30M | 84.77M | Net Debt |
| -92.26M | 15.51M | 21.31M | 18.37M | 377.00K | Total Liabilities |
| 112.57M | 181.36M | 183.69M | 201.22M | 148.41M | Stockholders Equity |
| 262.90M | 278.66M | 265.67M | 242.03M | 146.08M |
| Cash Flow | Free Cash Flow | |||
| 4.18M | 6.55M | -9.04M | 30.76M | -14.34M | Operating Cash Flow |
| 14.21M | 30.92M | 24.86M | 61.98M | 6.80M | Investing Cash Flow |
| -10.03M | -24.36M | -33.90M | -31.22M | -24.83M | Financing Cash Flow |
| 27.64M | -5.50M | -2.20M | -1.04M | 42.47M |
Organogenesis Holdings Technical Analysis
Positive
5.30
Price Trends
3.72
Positive
3.58
Positive
3.18
Positive
Market Momentum
0.52
Negative
60.53
Neutral
58.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ORGO, the sentiment is Positive. The current price of 5.3 is above the 20-day moving average (MA) of 4.25, above the 50-day MA of 3.72, and above the 200-day MA of 3.18, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 60.53 is Neutral, neither overbought nor oversold. The STOCH value of 58.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ORGO.
Organogenesis Holdings Risk Analysis
Organogenesis Holdings disclosed 73 risk factors in its most recent earnings report. Organogenesis Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Organogenesis Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.15B | 27.38 | 25.01% | ― | 8.52% | -32.91% | |
69 Neutral | $4.04B | 35.78 | 7.71% | ― | 8.49% | 31.15% | |
68 Neutral | $672.19M | 946.43 | 0.26% | ― | 11.29% | -79.52% | |
55 Neutral | $220.61M | ― | -230.96% | ― | 32.24% | -66.93% | |
52 Neutral | $252.82M | 25.27 | -4.64% | ― | -54.17% | -135.78% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% | |
43 Neutral | $393.28M | ― | -12.32% | ― | -9.23% | -359.07% |
* Healthcare Sector Average
Performance Comparison
ORGO
Organogenesis Holdings
5.30
2.30
76.67%
ITGR
Integer Holdings
120.14
6.24
5.48%
OSUR
Orasure Technologies
3.38
-3.65
-51.92%
SRDX
SurModics
27.51
-1.47
-5.07%
RCEL
Avita Medical
8.37
-8.72
-51.02%
MDXG
MiMedx Group
8.12
0.17
2.14%
Organogenesis Holdings Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: 72.64% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call highlights strong financial performance with significant revenue growth, successful debt reduction, and progress in clinical programs. However, challenges remain with market uncertainty due to delayed LCD implementation and competitive pressures. Despite these challenges, the company's strategic initiatives and financial health position it well for future opportunities.Highlights
Strong Revenue Growth in Q4
Organogenesis delivered sales results above the high end of the guidance range, growing 27% in the fourth quarter of fiscal year 2024.
Advanced Wound Care Performance
Advanced Wound Care net revenue for the fourth quarter was $119 million, up 27% year-over-year.
Improvement in Gross Profit and Operating Income
Gross profit for the fourth quarter was $96 million, or 75.5% of net revenue, compared to 72.1% last year. Operating income for the fourth quarter was $10.2 million compared to an operating loss of $1.3 million last year.
Successful Funding and Debt Reduction
The private placement of Series A convertible preferred stock provided $122.7 million, which was used to pay off $66.6 million in long-term debt.
ReNu Program Progress
Completed enrollment in the second Phase 3 clinical trial for ReNu with expectations for a BLA submission by the end of 2025.
Lowlights
Challenges with LCD Implementation
The implementation of the final LCD has been delayed to April 13, 2025, creating ambiguity and disruption in customer behavior.
Competitive Pressure and Market Uncertainty
The market remains uncertain and competitive due to ongoing changes in coverage and reimbursement for skin substitute products.
Potential Revenue Impact from LCD Exclusions
Products not on the LCD covered list, such as PuraPly, may face challenges, although they are used in non-DFU/VLU contexts.
Company Guidance
During the fourth quarter and fiscal year 2024 earnings call for Organogenesis Holdings, Inc., the company reported robust financial metrics. Fourth-quarter revenue grew 27% year-over-year, reaching $126.7 million, surpassing previous guidance of $100 million to $125 million. Gross profit was $96 million, marking a gross margin of 75.5%, up from 72.1% the previous year. Operating income improved to $10.2 million from a loss of $1.3 million, and GAAP net income rose to $7.7 million from a loss of $0.6 million the prior year. Adjusted EBITDA for the quarter was $18.2 million, or 14.4% of net revenue, exceeding guidance by over $2 million. For fiscal year 2025, Organogenesis provided guidance with expected net revenue between $480 million and $535 million, reflecting a potential year-over-year change from flat to an 11% increase. The guidance also included expectations for GAAP net income between $9.5 million and $38.8 million, and adjusted EBITDA ranging from $43.6 million to $83.2 million, with a focus on leveraging their strong brand equity and commercial infrastructure in a dynamic market environment.Organogenesis Holdings Corporate Events
Private Placements and FinancingStock BuybackBusiness Operations and Strategy
Organogenesis Holdings Secures $130M Investment for Growth
Positive
Nov 13, 2024
Organogenesis Holdings Inc. has secured a $130 million private placement deal with Avista Healthcare Partners to bolster its strategic growth, repay debt, and repurchase shares. This investment, through the issuance of Series A Convertible Preferred Stock, offers an 8% annual dividend and conversion rights into common stock at a premium price. The company aims to enhance its financial flexibility and capitalize on growth opportunities in regenerative medicine, while leveraging Avista’s healthcare expertise.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.