NEOGEN CORP (NEOG) Stock Fundamental Analysis
NASDAQ:NEOG - Nasdaq - US6404911066 - Common Stock - Currency: USD
Overall NEOG gets a fundamental rating of 3 out of 10. We evaluated NEOG against 190 industry peers in the Health Care Equipment & Supplies industry. Both the profitability and the financial health of NEOG get a neutral evaluation. Nothing too spectacular is happening here. NEOG does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year NEOG was profitable.
NEOG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: NEOG reported negative net income in multiple years.
NEOG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -11.75%, NEOG perfoms like the industry average, outperforming 57.45% of the companies in the same industry.
Looking at the Return On Equity, with a value of -17.85%, NEOG is in the better half of the industry, outperforming 61.70% of the companies in the same industry.
NEOG has a better Return On Invested Capital (0.63%) than 66.49% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NEOG is significantly below the industry average of 8.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.75% | ||
| ROE | -17.85% | ||
| ROIC | 0.63% |
ROA(3y)1.38%
ROA(5y)3.65%
ROE(3y)1.47%
ROE(5y)3.97%
ROIC(3y)2.71%
ROIC(5y)4.4%
1.3 Margins
The Operating Margin of NEOG (3.42%) is better than 69.68% of its industry peers.
NEOG's Operating Margin has declined in the last couple of years.
The Gross Margin of NEOG (49.09%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of NEOG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.42% | ||
| PM (TTM) | N/A | ||
| GM | 49.09% |
OM growth 3Y-20.27%
OM growth 5Y-13.36%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.02%
GM growth 5Y1.61%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NEOG is destroying value.
Compared to 1 year ago, NEOG has about the same amount of shares outstanding.
The number of shares outstanding for NEOG has been increased compared to 5 years ago.
Compared to 1 year ago, NEOG has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.35, we must say that NEOG is in the distress zone and has some risk of bankruptcy.
NEOG's Altman-Z score of 1.35 is in line compared to the rest of the industry. NEOG outperforms 53.72% of its industry peers.
NEOG has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of NEOG (0.33) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.35 |
ROIC/WACC0.07
WACC9.18%
2.3 Liquidity
NEOG has a Current Ratio of 3.77. This indicates that NEOG is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 3.77, NEOG is doing good in the industry, outperforming 69.15% of the companies in the same industry.
NEOG has a Quick Ratio of 2.46. This indicates that NEOG is financially healthy and has no problem in meeting its short term obligations.
NEOG has a Quick ratio of 2.46. This is comparable to the rest of the industry: NEOG outperforms 58.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.77 | ||
| Quick Ratio | 2.46 |
3. Growth
3.1 Past
NEOG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.67%.
NEOG shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.21% yearly.
The Revenue has decreased by -0.53% in the past year.
Measured over the past years, NEOG shows a quite strong growth in Revenue. The Revenue has been growing by 17.41% on average per year.
EPS 1Y (TTM)-16.67%
EPS 3Y-8.53%
EPS 5Y-5.21%
EPS Q2Q%0%
Revenue 1Y (TTM)-0.53%
Revenue growth 3Y25.42%
Revenue growth 5Y17.41%
Sales Q2Q%0.71%
3.2 Future
NEOG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.59% yearly.
Based on estimates for the next years, NEOG will show a small growth in Revenue. The Revenue will grow by 3.55% on average per year.
EPS Next Y-2.64%
EPS Next 2Y5.12%
EPS Next 3Y9.3%
EPS Next 5Y4.59%
Revenue Next Year-0.33%
Revenue Next 2Y1.87%
Revenue Next 3Y2.73%
Revenue Next 5Y3.55%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.10, the valuation of NEOG can be described as expensive.
NEOG's Price/Earnings ratio is rather cheap when compared to the industry. NEOG is cheaper than 80.85% of the companies in the same industry.
NEOG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.63.
Based on the Price/Forward Earnings ratio of 20.65, the valuation of NEOG can be described as rather expensive.
NEOG's Price/Forward Earnings ratio is rather cheap when compared to the industry. NEOG is cheaper than 81.91% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, NEOG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.1 | ||
| Fwd PE | 20.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEOG is valued a bit cheaper than 76.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.59 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.12%
EPS Next 3Y9.3%
5. Dividend
5.1 Amount
No dividends for NEOG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.04
0 (0%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners118.35%
Inst Owner Change2.47%
Ins Owners0.18%
Ins Owner Change26.38%
Market Cap2.18B
Analysts82
Price Target14.96 (49%)
Short Float %9.29%
Short Ratio8.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.85%
Min EPS beat(2)-19.26%
Max EPS beat(2)11.56%
EPS beat(4)1
Avg EPS beat(4)-9.6%
Min EPS beat(4)-19.26%
Max EPS beat(4)11.56%
EPS beat(8)3
Avg EPS beat(8)162.67%
EPS beat(12)4
Avg EPS beat(12)38.96%
EPS beat(16)4
Avg EPS beat(16)25.49%
Revenue beat(2)0
Avg Revenue beat(2)-0.64%
Min Revenue beat(2)-1.09%
Max Revenue beat(2)-0.19%
Revenue beat(4)1
Avg Revenue beat(4)-0.24%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)2.8%
Revenue beat(8)2
Avg Revenue beat(8)-0.65%
Revenue beat(12)2
Avg Revenue beat(12)-1.24%
Revenue beat(16)5
Avg Revenue beat(16)-0.17%
PT rev (1m)-9.28%
PT rev (3m)-21.78%
EPS NQ rev (1m)-18.52%
EPS NQ rev (3m)-35.29%
EPS NY rev (1m)-8.7%
EPS NY rev (3m)-10.64%
Revenue NQ rev (1m)-5.52%
Revenue NQ rev (3m)-6.9%
Revenue NY rev (1m)-2.67%
Revenue NY rev (3m)-2.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.1 | ||
| Fwd PE | 20.65 | ||
| P/S | 2.38 | ||
| P/FCF | N/A | ||
| P/OCF | 115.36 | ||
| P/B | 0.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.59 |
EPS(TTM)0.4
EY3.98%
EPS(NY)0.49
Fwd EY4.84%
FCF(TTM)-0.43
FCFYN/A
OCF(TTM)0.09
OCFY0.87%
SpS4.21
BVpS12.3
TBVpS-2.15
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.75% | ||
| ROE | -17.85% | ||
| ROCE | 0.8% | ||
| ROIC | 0.63% | ||
| ROICexc | 0.66% | ||
| ROICexgc | 3.93% | ||
| OM | 3.42% | ||
| PM (TTM) | N/A | ||
| GM | 49.09% | ||
| FCFM | N/A |
ROA(3y)1.38%
ROA(5y)3.65%
ROE(3y)1.47%
ROE(5y)3.97%
ROIC(3y)2.71%
ROIC(5y)4.4%
ROICexc(3y)3.97%
ROICexc(5y)7.43%
ROICexgc(3y)14.92%
ROICexgc(5y)18.11%
ROCE(3y)3.43%
ROCE(5y)5.58%
ROICexcg growth 3Y-23.14%
ROICexcg growth 5Y-16.2%
ROICexc growth 3Y-51.38%
ROICexc growth 5Y-36.83%
OM growth 3Y-20.27%
OM growth 5Y-13.36%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.02%
GM growth 5Y1.61%
F-Score4
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.95 | ||
| Cap/Depr | 94.59% | ||
| Cap/Sales | 12.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 12.62% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.77 | ||
| Quick Ratio | 2.46 | ||
| Altman-Z | 1.35 |
F-Score4
WACC9.18%
ROIC/WACC0.07
Cap/Depr(3y)91%
Cap/Depr(5y)106.13%
Cap/Sales(3y)8.23%
Cap/Sales(5y)7.23%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-16.67%
EPS 3Y-8.53%
EPS 5Y-5.21%
EPS Q2Q%0%
EPS Next Y-2.64%
EPS Next 2Y5.12%
EPS Next 3Y9.3%
EPS Next 5Y4.59%
Revenue 1Y (TTM)-0.53%
Revenue growth 3Y25.42%
Revenue growth 5Y17.41%
Sales Q2Q%0.71%
Revenue Next Year-0.33%
Revenue Next 2Y1.87%
Revenue Next 3Y2.73%
Revenue Next 5Y3.55%
EBIT growth 1Y-61.9%
EBIT growth 3Y-0.01%
EBIT growth 5Y1.73%
EBIT Next Year62.88%
EBIT Next 3Y24.17%
EBIT Next 5Y16.63%
FCF growth 1Y-85.5%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y420.54%
OCF growth 3Y-24.24%
OCF growth 5Y-11.19%