NEOGEN CORP (NEOG) Stock Fundamental Analysis
NASDAQ:NEOG - Nasdaq - US6404911066 - Common Stock - Currency: USD
Taking everything into account, NEOG scores 4 out of 10 in our fundamental rating. NEOG was compared to 190 industry peers in the Health Care Equipment & Supplies industry. NEOG has only an average score on both its financial health and profitability. NEOG has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year NEOG was profitable.
In the past year NEOG had a positive cash flow from operations.
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
The Return On Assets of NEOG (-12.02%) is comparable to the rest of the industry.
NEOG's Return On Equity of -18.24% is fine compared to the rest of the industry. NEOG outperforms 63.35% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.50%, NEOG is in the better half of the industry, outperforming 67.02% of the companies in the same industry.
NEOG had an Average Return On Invested Capital over the past 3 years of 2.71%. This is below the industry average of 7.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.02% | ||
| ROE | -18.24% | ||
| ROIC | 0.5% |
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
Looking at the Operating Margin, with a value of 2.72%, NEOG is in the better half of the industry, outperforming 68.59% of the companies in the same industry.
NEOG's Operating Margin has declined in the last couple of years.
NEOG has a Gross Margin of 48.79%. This is comparable to the rest of the industry: NEOG outperforms 41.36% of its industry peers.
In the last couple of years the Gross Margin of NEOG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.72% | ||
| PM (TTM) | N/A | ||
| GM | 48.79% |
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
NEOG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NEOG has about the same amout of shares outstanding than it did 1 year ago.
NEOG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NEOG is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.81, we must say that NEOG is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.81, NEOG perfoms like the industry average, outperforming 51.83% of the companies in the same industry.
NEOG has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
NEOG has a Debt to Equity ratio (0.33) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.81 |
ROIC/WACC0.05
WACC9.49%
2.3 Liquidity
A Current Ratio of 3.91 indicates that NEOG has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.91, NEOG is doing good in the industry, outperforming 66.49% of the companies in the same industry.
NEOG has a Quick Ratio of 2.45. This indicates that NEOG is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of NEOG (2.45) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.91 | ||
| Quick Ratio | 2.45 |
3. Growth
3.1 Past
The earnings per share for NEOG have decreased strongly by -20.83% in the last year.
The Earnings Per Share has been decreasing by -5.21% on average over the past years.
The Revenue has decreased by -2.50% 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)-20.83%
EPS 3Y-8.53%
EPS 5Y-5.21%
EPS Q2Q%-16.67%
Revenue 1Y (TTM)-2.5%
Revenue growth 3Y25.42%
Revenue growth 5Y17.41%
Sales Q2Q%-3.42%
3.2 Future
NEOG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.10% yearly.
Based on estimates for the next years, NEOG will show a small growth in Revenue. The Revenue will grow by 1.81% on average per year.
EPS Next Y-14.23%
EPS Next 2Y-1.33%
EPS Next 3Y3.62%
EPS Next 5Y6.1%
Revenue Next Year-1.36%
Revenue Next 2Y0.98%
Revenue Next 3Y1.9%
Revenue Next 5Y1.81%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
NEOG is valuated reasonably with a Price/Earnings ratio of 11.55.
Compared to the rest of the industry, the Price/Earnings ratio of NEOG indicates a rather cheap valuation: NEOG is cheaper than 91.62% of the companies listed in the same industry.
NEOG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
Based on the Price/Forward Earnings ratio of 10.25, the valuation of NEOG can be described as reasonable.
94.76% of the companies in the same industry are more expensive than NEOG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of NEOG to the average of the S&P500 Index (21.08), we can say NEOG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.55 | ||
| Fwd PE | 10.25 |
4.2 Price Multiples
NEOG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NEOG is cheaper than 85.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.04 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.33%
EPS Next 3Y3.62%
5. Dividend
5.1 Amount
NEOG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.39
-0.21 (-4.57%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners121.73%
Inst Owner Change0.16%
Ins Owners0.23%
Ins Owner Change18.27%
Market Cap952.81M
Analysts82
Price Target14.96 (240.77%)
Short Float %10.7%
Short Ratio8.79
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)0.34%
Min EPS beat(2)-10.87%
Max EPS beat(2)11.56%
EPS beat(4)1
Avg EPS beat(4)-8.33%
Min EPS beat(4)-19.26%
Max EPS beat(4)11.56%
EPS beat(8)2
Avg EPS beat(8)50.77%
EPS beat(12)4
Avg EPS beat(12)43.66%
EPS beat(16)4
Avg EPS beat(16)25.09%
Revenue beat(2)0
Avg Revenue beat(2)-1.93%
Min Revenue beat(2)-3.66%
Max Revenue beat(2)-0.19%
Revenue beat(4)1
Avg Revenue beat(4)-0.54%
Min Revenue beat(4)-3.66%
Max Revenue beat(4)2.8%
Revenue beat(8)2
Avg Revenue beat(8)-0.83%
Revenue beat(12)2
Avg Revenue beat(12)-1.27%
Revenue beat(16)4
Avg Revenue beat(16)-0.85%
PT rev (1m)0%
PT rev (3m)-9.28%
EPS NQ rev (1m)-30.77%
EPS NQ rev (3m)-45.45%
EPS NY rev (1m)-11.9%
EPS NY rev (3m)-19.57%
Revenue NQ rev (1m)-6.38%
Revenue NQ rev (3m)-13.01%
Revenue NY rev (1m)-1.03%
Revenue NY rev (3m)-3.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.55 | ||
| Fwd PE | 10.25 | ||
| P/S | 1.05 | ||
| P/FCF | N/A | ||
| P/OCF | 13.92 | ||
| P/B | 0.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.04 |
EPS(TTM)0.38
EY8.66%
EPS(NY)0.43
Fwd EY9.76%
FCF(TTM)-0.2
FCFYN/A
OCF(TTM)0.32
OCFY7.18%
SpS4.17
BVpS12.26
TBVpS-2.08
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.02% | ||
| ROE | -18.24% | ||
| ROCE | 0.63% | ||
| ROIC | 0.5% | ||
| ROICexc | 0.52% | ||
| ROICexgc | 2.96% | ||
| OM | 2.72% | ||
| PM (TTM) | N/A | ||
| GM | 48.79% | ||
| 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 Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.24 | ||
| Cap/Depr | 95.45% | ||
| Cap/Sales | 12.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 47.97% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.91 | ||
| Quick Ratio | 2.45 | ||
| Altman-Z | 0.81 |
F-Score4
WACC9.49%
ROIC/WACC0.05
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)-20.83%
EPS 3Y-8.53%
EPS 5Y-5.21%
EPS Q2Q%-16.67%
EPS Next Y-14.23%
EPS Next 2Y-1.33%
EPS Next 3Y3.62%
EPS Next 5Y6.1%
Revenue 1Y (TTM)-2.5%
Revenue growth 3Y25.42%
Revenue growth 5Y17.41%
Sales Q2Q%-3.42%
Revenue Next Year-1.36%
Revenue Next 2Y0.98%
Revenue Next 3Y1.9%
Revenue Next 5Y1.81%
EBIT growth 1Y-66.32%
EBIT growth 3Y-0.01%
EBIT growth 5Y1.73%
EBIT Next Year62.88%
EBIT Next 3Y24.17%
EBIT Next 5Y15.27%
FCF growth 1Y46.24%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y331.64%
OCF growth 3Y-24.24%
OCF growth 5Y-11.19%