NEOGEN CORP (NEOG) Stock Fundamental Analysis
NASDAQ:NEOG - Nasdaq - US6404911066 - Common Stock
Taking everything into account, NEOG scores 3 out of 10 in our fundamental rating. NEOG was compared to 191 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 is valued expensive and 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.
In multiple years NEOG reported negative net income over the last 5 years.
NEOG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NEOG has a Return On Assets (-11.75%) which is in line with its industry peers.
NEOG's Return On Equity of -17.85% is fine compared to the rest of the industry. NEOG outperforms 62.63% of its industry peers.
NEOG has a better Return On Invested Capital (0.63%) than 66.84% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NEOG is significantly below the industry average of 8.08%.
| 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 70.00% of its industry peers.
In the last couple of years the Operating Margin of NEOG has declined.
NEOG has a Gross Margin of 49.09%. This is comparable to the rest of the industry: NEOG outperforms 43.16% of its industry peers.
NEOG's Gross Margin has improved in the last couple of years.
| 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
NEOG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, NEOG has a worse debt to assets ratio.
2.2 Solvency
NEOG has an Altman-Z score of 1.51. This is a bad value and indicates that NEOG is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.51, NEOG is in line with its industry, outperforming 53.16% 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's Debt to Equity ratio of 0.33 is in line compared to the rest of the industry. NEOG outperforms 48.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.51 |
ROIC/WACC0.07
WACC9.03%
2.3 Liquidity
A Current Ratio of 3.77 indicates that NEOG has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.77, NEOG is in the better half of the industry, outperforming 69.47% 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 (2.46) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.77 | ||
| Quick Ratio | 2.46 |
3. Growth
3.1 Past
The earnings per share for NEOG have decreased strongly by -16.67% 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 -0.53% 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)-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
The Earnings Per Share is expected to grow by 6.74% on average over the next years.
The Revenue is expected to grow by 3.91% on average over the next years.
EPS Next Y6.64%
EPS Next 2Y15.95%
EPS Next 3Y18.35%
EPS Next 5Y6.74%
Revenue Next Year2.4%
Revenue Next 2Y3.59%
Revenue Next 3Y3.97%
Revenue Next 5Y3.91%
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
NEOG is valuated quite expensively with a Price/Earnings ratio of 29.87.
NEOG's Price/Earnings ratio is a bit cheaper when compared to the industry. NEOG is cheaper than 76.84% of the companies in the same industry.
NEOG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.19.
A Price/Forward Earnings ratio of 20.20 indicates a rather expensive valuation of NEOG.
84.21% of the companies in the same industry are more expensive than NEOG, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.37. NEOG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.87 | ||
| Fwd PE | 20.2 |
4.2 Price Multiples
77.37% of the companies in the same industry are more expensive than NEOG, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.04 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as NEOG's earnings are expected to grow with 18.35% in the coming years.
PEG (NY)4.5
PEG (5Y)N/A
EPS Next 2Y15.95%
EPS Next 3Y18.35%
5. Dividend
5.1 Amount
NEOG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NEOGEN CORP
NASDAQ:NEOG (1/22/2025, 4:43:53 PM)
After market: 11.95 0 (0%)11.95
+0.21 (+1.79%)
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 Change0.05%
Ins Owners0.18%
Ins Owner Change53.72%
Market Cap2.59B
Analysts82
Price Target16.49 (37.99%)
Short Float %10.23%
Short Ratio10.99
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)-2.87%
Min EPS beat(2)-19.26%
Max EPS beat(2)13.52%
EPS beat(4)1
Avg EPS beat(4)-9.11%
Min EPS beat(4)-19.26%
Max EPS beat(4)13.52%
EPS beat(8)3
Avg EPS beat(8)162.92%
EPS beat(12)4
Avg EPS beat(12)39.12%
EPS beat(16)4
Avg EPS beat(16)25.61%
Revenue beat(2)1
Avg Revenue beat(2)-0.5%
Min Revenue beat(2)-1.09%
Max Revenue beat(2)0.1%
Revenue beat(4)2
Avg Revenue beat(4)-0.17%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)2.8%
Revenue beat(8)3
Avg Revenue beat(8)-0.62%
Revenue beat(12)3
Avg Revenue beat(12)-1.22%
Revenue beat(16)6
Avg Revenue beat(16)-0.15%
PT rev (1m)-13.78%
PT rev (3m)-20.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.59%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.45%
Revenue NY rev (1m)-1.8%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.87 | ||
| Fwd PE | 20.2 | ||
| P/S | 2.83 | ||
| P/FCF | N/A | ||
| P/OCF | 137.16 | ||
| P/B | 0.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.04 |
EPS(TTM)0.4
EY3.35%
EPS(NY)0.59
Fwd EY4.95%
FCF(TTM)-0.43
FCFYN/A
OCF(TTM)0.09
OCFY0.73%
SpS4.22
BVpS12.32
TBVpS-2.15
PEG (NY)4.5
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 | 1.51 |
F-Score4
WACC9.03%
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 Y6.64%
EPS Next 2Y15.95%
EPS Next 3Y18.35%
EPS Next 5Y6.74%
Revenue 1Y (TTM)-0.53%
Revenue growth 3Y25.42%
Revenue growth 5Y17.41%
Sales Q2Q%0.71%
Revenue Next Year2.4%
Revenue Next 2Y3.59%
Revenue Next 3Y3.97%
Revenue Next 5Y3.91%
EBIT growth 1Y-61.9%
EBIT growth 3Y-0.01%
EBIT growth 5Y1.73%
EBIT Next Year71.1%
EBIT Next 3Y26.7%
EBIT Next 5Y22.53%
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%