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NEO PERFORMANCE MATERIALS IN (NEO.CA) Stock Fundamental Analysis

TSX:NEO - Toronto Stock Exchange - CA64046G1063 - Common Stock - Currency: CAD

8.28  -0.27 (-3.16%)

Fundamental Rating

4

Overall NEO gets a fundamental rating of 4 out of 10. We evaluated NEO against 32 industry peers in the Chemicals industry. NEO has an average financial health and profitability rating. NEO has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

NEO had negative earnings in the past year.
In the past year NEO had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: NEO reported negative net income in multiple years.
NEO had a positive operating cash flow in 4 of the past 5 years.
NEO.CA Yearly Net Income VS EBIT VS OCF VS FCFNEO.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M -50M -100M -150M -200M

1.2 Ratios

Looking at the Return On Assets, with a value of -0.35%, NEO is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
With a decent Return On Equity value of -0.54%, NEO is doing good in the industry, outperforming 72.41% of the companies in the same industry.
NEO's Return On Invested Capital of 2.88% is fine compared to the rest of the industry. NEO outperforms 72.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NEO is in line with the industry average of 8.14%.
Industry RankSector Rank
ROA -0.35%
ROE -0.54%
ROIC 2.88%
ROA(3y)2.8%
ROA(5y)0.16%
ROE(3y)3.91%
ROE(5y)0.23%
ROIC(3y)6.3%
ROIC(5y)5.03%
NEO.CA Yearly ROA, ROE, ROICNEO.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -20 -40 -60

1.3 Margins

NEO's Operating Margin of 4.28% is fine compared to the rest of the industry. NEO outperforms 68.97% of its industry peers.
In the last couple of years the Operating Margin of NEO has declined.
Looking at the Gross Margin, with a value of 22.35%, NEO is in line with its industry, outperforming 51.72% of the companies in the same industry.
In the last couple of years the Gross Margin of NEO has declined.
Industry RankSector Rank
OM 4.28%
PM (TTM) N/A
GM 22.35%
OM growth 3Y104.25%
OM growth 5Y-22.14%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.66%
GM growth 5Y-8.09%
NEO.CA Yearly Profit, Operating, Gross MarginsNEO.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 -40

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5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NEO is destroying value.
Compared to 1 year ago, NEO has less shares outstanding
NEO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NEO has an improved debt to assets ratio.
NEO.CA Yearly Shares OutstandingNEO.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M
NEO.CA Yearly Total Debt VS Total AssetsNEO.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

2.2 Solvency

NEO has an Altman-Z score of 1.84. This is not the best score and indicates that NEO is in the grey zone with still only limited risk for bankruptcy at the moment.
NEO's Altman-Z score of 1.84 is fine compared to the rest of the industry. NEO outperforms 68.97% of its industry peers.
A Debt/Equity ratio of 0.10 indicates that NEO is not too dependend on debt financing.
NEO has a better Debt to Equity ratio (0.10) than 75.86% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.1
Debt/FCF N/A
Altman-Z 1.84
ROIC/WACC0.38
WACC7.61%
NEO.CA Yearly LT Debt VS Equity VS FCFNEO.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M 300M 400M

2.3 Liquidity

NEO has a Current Ratio of 2.59. This indicates that NEO is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.59, NEO is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
NEO has a Quick Ratio of 1.58. This is a normal value and indicates that NEO is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.58, NEO is doing good in the industry, outperforming 65.52% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.59
Quick Ratio 1.58
NEO.CA Yearly Current Assets VS Current LiabilitesNEO.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M

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2

3. Growth

3.1 Past

NEO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 82.14%, which is quite impressive.
The Revenue for NEO has decreased by -21.99% in the past year. This is quite bad
Measured over the past years, NEO shows a small growth in Revenue. The Revenue has been growing by 4.70% on average per year.
EPS 1Y (TTM)82.14%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-185.71%
Revenue 1Y (TTM)-21.99%
Revenue growth 3Y18.13%
Revenue growth 5Y4.7%
Sales Q2Q%-18.72%

3.2 Future

The Earnings Per Share is expected to grow by 69.41% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -5.87% on average over the next years.
EPS Next Y262.72%
EPS Next 2Y103.28%
EPS Next 3Y69.41%
EPS Next 5YN/A
Revenue Next Year-19.15%
Revenue Next 2Y-10.24%
Revenue Next 3Y-5.87%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
NEO.CA Yearly Revenue VS EstimatesNEO.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M
NEO.CA Yearly EPS VS EstimatesNEO.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.5 1

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4

4. Valuation

4.1 Price/Earnings Ratio

NEO reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 15.20, NEO is valued correctly.
NEO's Price/Forward Earnings ratio is rather cheap when compared to the industry. NEO is cheaper than 82.76% of the companies in the same industry.
NEO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 15.2
NEO.CA Price Earnings VS Forward Price EarningsNEO.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 -50 -100

4.2 Price Multiples

93.10% of the companies in the same industry are more expensive than NEO, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 6.39
NEO.CA Per share dataNEO.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NEO's earnings are expected to grow with 69.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y103.28%
EPS Next 3Y69.41%

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6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.68%, NEO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.68, NEO pays a bit more dividend than its industry peers.
NEO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
Industry RankSector Rank
Dividend Yield 4.68%

5.2 History

The dividend of NEO has a limited annual growth rate of 0.87%.
NEO has been paying a dividend for over 5 years, so it has already some track record.
As NEO did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)0.87%
Div Incr Years0
Div Non Decr Years6
NEO.CA Yearly Dividends per shareNEO.CA Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 2024 0 0 0 0 0

5.3 Sustainability

NEO has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of NEO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-557.21%
EPS Next 2Y103.28%
EPS Next 3Y69.41%
NEO.CA Yearly Income VS Free CF VS DividendNEO.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M -50M -100M -150M -200M

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NEO PERFORMANCE MATERIALS IN

TSX:NEO (2/21/2025, 7:00:00 PM)

8.28

-0.27 (-3.16%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)11-14 2024-11-14/bmo
Earnings (Next)03-13 2025-03-13/amc
Inst Owners22.42%
Inst Owner ChangeN/A
Ins Owners0.95%
Ins Owner ChangeN/A
Market Cap345.86M
Analysts82.86
Price Target14.21 (71.62%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.68%
Yearly Dividend0.31
Dividend Growth(5Y)0.87%
DP-557.21%
Div Incr Years0
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-115.84%
Min EPS beat(2)-171.29%
Max EPS beat(2)-60.4%
EPS beat(4)0
Avg EPS beat(4)-104.08%
Min EPS beat(4)-171.29%
Max EPS beat(4)-60.4%
EPS beat(8)1
Avg EPS beat(8)-102.43%
EPS beat(12)4
Avg EPS beat(12)-66.12%
EPS beat(16)8
Avg EPS beat(16)-32.09%
Revenue beat(2)1
Avg Revenue beat(2)-8.83%
Min Revenue beat(2)-18.01%
Max Revenue beat(2)0.34%
Revenue beat(4)1
Avg Revenue beat(4)-8.48%
Min Revenue beat(4)-18.01%
Max Revenue beat(4)0.34%
Revenue beat(8)3
Avg Revenue beat(8)-2.3%
Revenue beat(12)5
Avg Revenue beat(12)-0.85%
Revenue beat(16)8
Avg Revenue beat(16)1.75%
PT rev (1m)3.59%
PT rev (3m)9.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-40.78%
EPS NY rev (1m)205.26%
EPS NY rev (3m)3.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-33.44%
Revenue NY rev (1m)3.81%
Revenue NY rev (3m)3.56%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 15.2
P/S 0.52
P/FCF N/A
P/OCF 7.74
P/B 0.58
P/tB 0.76
EV/EBITDA 6.39
EPS(TTM)-0.07
EYN/A
EPS(NY)0.54
Fwd EY6.58%
FCF(TTM)-1.53
FCFYN/A
OCF(TTM)1.07
OCFY12.92%
SpS15.96
BVpS14.36
TBVpS10.92
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.35%
ROE -0.54%
ROCE 4%
ROIC 2.88%
ROICexc 3.31%
ROICexgc 4.3%
OM 4.28%
PM (TTM) N/A
GM 22.35%
FCFM N/A
ROA(3y)2.8%
ROA(5y)0.16%
ROE(3y)3.91%
ROE(5y)0.23%
ROIC(3y)6.3%
ROIC(5y)5.03%
ROICexc(3y)8.05%
ROICexc(5y)6.37%
ROICexgc(3y)11.28%
ROICexgc(5y)9.52%
ROCE(3y)8.91%
ROCE(5y)7.09%
ROICexcg growth 3Y106.02%
ROICexcg growth 5Y-22.8%
ROICexc growth 3Y120.38%
ROICexc growth 5Y-18.96%
OM growth 3Y104.25%
OM growth 5Y-22.14%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.66%
GM growth 5Y-8.09%
F-Score5
Asset Turnover0.73
Health
Industry RankSector Rank
Debt/Equity 0.1
Debt/FCF N/A
Debt/EBITDA 1.22
Cap/Depr 488.39%
Cap/Sales 16.3%
Interest Coverage 250
Cash Conversion 87.95%
Profit Quality N/A
Current Ratio 2.59
Quick Ratio 1.58
Altman-Z 1.84
F-Score5
WACC7.61%
ROIC/WACC0.38
Cap/Depr(3y)137.46%
Cap/Depr(5y)104.36%
Cap/Sales(3y)3.93%
Cap/Sales(5y)3.37%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)82.14%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-185.71%
EPS Next Y262.72%
EPS Next 2Y103.28%
EPS Next 3Y69.41%
EPS Next 5YN/A
Revenue 1Y (TTM)-21.99%
Revenue growth 3Y18.13%
Revenue growth 5Y4.7%
Sales Q2Q%-18.72%
Revenue Next Year-19.15%
Revenue Next 2Y-10.24%
Revenue Next 3Y-5.87%
Revenue Next 5YN/A
EBIT growth 1Y-17.2%
EBIT growth 3Y141.28%
EBIT growth 5Y-18.47%
EBIT Next Year111.89%
EBIT Next 3Y33.87%
EBIT Next 5YN/A
FCF growth 1Y-176.04%
FCF growth 3Y100.66%
FCF growth 5YN/A
OCF growth 1Y1417.03%
OCF growth 3Y82.91%
OCF growth 5YN/A