NEOGEN CORP (NEOG)
US6404911066 - Common Stock
Overall NEOG gets a fundamental rating of 4 out of 10. We evaluated NEOG against 188 industry peers in the Health Care Equipment & Supplies industry. NEOG has an average financial health and profitability rating. NEOG is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
NEOG had positive earnings in the past year.
In the past year NEOG has reported a negative 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 better Return On Assets (-0.52%) than 68.98% of its industry peers.
The Return On Equity of NEOG (-0.75%) is better than 70.05% of its industry peers.
With a decent Return On Invested Capital value of 0.75%, NEOG is doing good in the industry, outperforming 67.38% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NEOG is significantly below the industry average of 8.23%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.52% | ||
| ROE | -0.75% | ||
| ROIC | 0.75% |
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 4.58%, NEOG is in the better half of the industry, outperforming 71.12% of the companies in the same industry.
NEOG's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 49.56%, NEOG perfoms like the industry average, outperforming 41.71% of the companies in the same industry.
NEOG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.58% | ||
| PM (TTM) | N/A | ||
| GM | 49.56% |
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.
The debt/assets ratio for NEOG is higher compared to a year ago.
2.2 Solvency
NEOG has an Altman-Z score of 1.90. This is not the best score and indicates that NEOG is in the grey zone with still only limited risk for bankruptcy at the moment.
NEOG has a Altman-Z score (1.90) which is in line with its industry peers.
NEOG has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.28, NEOG is in line with its industry, outperforming 48.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.9 |
ROIC/WACC0.08
WACC9.12%
2.3 Liquidity
NEOG has a Current Ratio of 4.41. This indicates that NEOG is financially healthy and has no problem in meeting its short term obligations.
NEOG has a Current ratio of 4.41. This is in the better half of the industry: NEOG outperforms 68.45% of its industry peers.
A Quick Ratio of 2.79 indicates that NEOG has no problem at all paying its short term obligations.
NEOG's Quick ratio of 2.79 is in line compared to the rest of the industry. NEOG outperforms 59.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.41 | ||
| Quick Ratio | 2.79 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 122.22% over the past year.
NEOG shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.21% yearly.
NEOG shows a decrease in Revenue. In the last year, the revenue decreased by -0.75%.
The Revenue has been growing by 17.41% on average over the past years. This is quite good.
EPS 1Y (TTM)122.22%
EPS 3Y-8.53%
EPS 5Y-5.21%
EPS Q2Q%-36.36%
Revenue 1Y (TTM)-0.75%
Revenue growth 3Y25.42%
Revenue growth 5Y17.41%
Sales Q2Q%-5.25%
3.2 Future
Based on estimates for the next years, NEOG will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.44% on average per year.
NEOG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.10% yearly.
EPS Next Y8.95%
EPS Next 2Y17.44%
EPS Next 3Y19.44%
EPS Next 5YN/A
Revenue Next Year2.57%
Revenue Next 2Y3.71%
Revenue Next 3Y4.1%
Revenue Next 5YN/A
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.
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 37.40, NEOG can be considered very expensive at the moment.
NEOG's Price/Earnings ratio is a bit cheaper when compared to the industry. NEOG is cheaper than 71.66% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, NEOG is valued a bit more expensive.
The Price/Forward Earnings ratio is 24.65, which indicates a rather expensive current valuation of NEOG.
NEOG's Price/Forward Earnings ratio is rather cheap when compared to the industry. NEOG is cheaper than 80.21% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.82. NEOG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.4 | ||
| Fwd PE | 24.65 |
4.2 Price Multiples
NEOG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NEOG is cheaper than 76.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 24.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NEOG does not grow enough to justify the current Price/Earnings ratio.
NEOG's earnings are expected to grow with 19.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.18
PEG (5Y)N/A
EPS Next 2Y17.44%
EPS Next 3Y19.44%
5. Dividend
5.1 Amount
NEOG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NEOGEN CORP
NASDAQ:NEOG (11/22/2024, 2:53:45 PM)
14.96
+0.38 (+2.61%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.24B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.4 | ||
| Fwd PE | 24.65 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.18
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.52% | ||
| ROE | -0.75% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.58% | ||
| PM (TTM) | N/A | ||
| GM | 49.56% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.41 | ||
| Quick Ratio | 2.79 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)122.22%
EPS 3Y-8.53%
EPS 5Y
EPS Q2Q%
EPS Next Y8.95%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.75%
Revenue growth 3Y25.42%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y