NEOGEN CORP (NEOG) Stock Fundamental Analysis
NASDAQ:NEOG - Nasdaq - US6404911066 - Common Stock - Currency: USD
Taking everything into account, NEOG scores 3 out of 10 in our fundamental rating. NEOG was compared to 187 industry peers in the Health Care Equipment & Supplies industry. NEOG has an average financial health and profitability rating. 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.
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.
Each year in the past 5 years NEOG had a positive operating cash flow.
1.2 Ratios
NEOG has a Return On Assets of -12.02%. This is comparable to the rest of the industry: NEOG outperforms 59.36% of its industry peers.
With a decent Return On Equity value of -18.24%, NEOG is doing good in the industry, outperforming 62.03% of the companies in the same industry.
The Return On Invested Capital of NEOG (0.50%) is better than 65.78% of its industry peers.
NEOG had an Average Return On Invested Capital over the past 3 years of 2.71%. This is significantly below the industry average of 7.89%.
| 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
The Operating Margin of NEOG (2.72%) is better than 67.38% of its industry peers.
NEOG's Operating Margin has declined in the last couple of years.
NEOG has a Gross Margin (48.79%) which is in line with its industry peers.
NEOG's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NEOG is destroying value.
Compared to 1 year ago, NEOG has about the same amount of shares outstanding.
NEOG has more shares outstanding than it did 5 years ago.
NEOG has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.92, we must say that NEOG is in the distress zone and has some risk of bankruptcy.
NEOG has a Altman-Z score (0.92) which is in line with its industry peers.
A Debt/Equity ratio of 0.33 indicates that NEOG is not too dependend on debt financing.
NEOG's Debt to Equity ratio of 0.33 is in line compared to the rest of the industry. NEOG outperforms 47.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.92 |
ROIC/WACC0.06
WACC7.92%
2.3 Liquidity
NEOG has a Current Ratio of 3.91. This indicates that NEOG is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 3.91, NEOG is doing good in the industry, outperforming 65.24% of the companies in the same industry.
A Quick Ratio of 2.45 indicates that NEOG has no problem at all paying its short term obligations.
With a Quick ratio value of 2.45, NEOG perfoms like the industry average, outperforming 55.62% of the companies in the same 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.
Measured over the past years, NEOG shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.21% on average per year.
The Revenue has decreased by -2.50% in the past year.
NEOG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.41% yearly.
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.
NEOG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.81% yearly.
EPS Next Y-14.23%
EPS Next 2Y-31.34%
EPS Next 3Y2.16%
EPS Next 5Y6.1%
Revenue Next Year-2.43%
Revenue Next 2Y-0.98%
Revenue Next 3Y0.13%
Revenue Next 5Y1.81%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.18, NEOG is valued correctly.
Based on the Price/Earnings ratio, NEOG is valued cheaply inside the industry as 87.17% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.30, NEOG is valued a bit cheaper.
With a Price/Forward Earnings ratio of 25.99, NEOG can be considered very expensive at the moment.
NEOG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NEOG is cheaper than 72.19% of the companies in the same industry.
NEOG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.18 | ||
| Fwd PE | 25.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEOG is valued cheaply inside the industry as 81.28% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.85 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-31.34%
EPS Next 3Y2.16%
5. Dividend
5.1 Amount
No dividends for NEOG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
5.39
-0.19 (-3.41%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners128.1%
Inst Owner Change0%
Ins Owners0.33%
Ins Owner Change31.2%
Market Cap1.17B
Analysts82
Price Target8.67 (60.85%)
Short Float %11.62%
Short Ratio4.01
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)-42.05%
EPS NQ rev (1m)-3.7%
EPS NQ rev (3m)-33.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.18 | ||
| Fwd PE | 25.99 | ||
| P/S | 1.29 | ||
| P/FCF | N/A | ||
| P/OCF | 17.09 | ||
| P/B | 0.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.85 |
EPS(TTM)0.38
EY7.05%
EPS(NY)0.21
Fwd EY3.85%
FCF(TTM)-0.2
FCFYN/A
OCF(TTM)0.32
OCFY5.85%
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 | 0.92 |
F-Score4
WACC7.92%
ROIC/WACC0.06
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-31.34%
EPS Next 3Y2.16%
EPS Next 5Y6.1%
Revenue 1Y (TTM)-2.5%
Revenue growth 3Y25.42%
Revenue growth 5Y17.41%
Sales Q2Q%-3.42%
Revenue Next Year-2.43%
Revenue Next 2Y-0.98%
Revenue Next 3Y0.13%
Revenue Next 5Y1.81%
EBIT growth 1Y-66.32%
EBIT growth 3Y-0.01%
EBIT growth 5Y1.73%
EBIT Next Year47.64%
EBIT Next 3Y17.49%
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%